Business today is unlike business yesterday. Your files are stored in the cloud rather than a cabinet. You map your delivery route with GPS, instead of an atlas. And much of your communication, research, purchasing, and payments are all performed using the internet rather than phones, books, and checks.
New technologies make your business more efficient, but they also have the potential to create new liabilities. This is because your present-day insurance policies are written for risks that existed in the past, not new risks that materialize as technology evolves. If your business is tech savvy, it’s important to be mindful about gaps in you may have in your policies.

Electronic Circuit Impairment
Damage to equipment is frequently covered in business insurance policies, but traditionally damage has been a tangible, measurable concept. It’s obvious your work tools are broken when there is visible physical damage. But many policies fall short when it comes to modern electronic equipment because it can stop functioning for no detectable reason when there are issues with the circuitry.

And many traditionally non-electronic systems, like door locks, are increasingly becoming wired. Policies with language that does not account for damages to these new systems may have significant gaps for smart businesses.

Internet and App Outages
Years ago, your biggest tech worry was a power outage – you can’t process a credit card in a blackout. But today, the lights could be on but the internet could be down. Or the internet might be functioning, but your apps aren’t working. Many traditional policies don’t take into account the all-too-frequent internet and software issues that can paralyze your business.

Data Loss
‘Data loss’ used to mean paper records were ruined in a flood or fire, or were physically stolen from your place of business. Now, data loss can be far less obvious. Software glitches, faulty hard drives, and security breaches are just a few ways data can be lost that involve no physical disasters and have nothing to do with your location. With data loss being so subtle, you might not notice the issue right away, making filing a claim even more difficult.

Data Breach
In the specific case of data being stolen, a customer service and PR nightmare can ensue. Clients need to be contacted, the internet needs to be monitored for negative reviews, and if your clients’ identities are stolen this could mean a whole lot of your time going toward damage control rather than running your business. Many policies do not take into account this type of loss, though in today’s world, this is very real and too frequent to ignore.
For all of the above, and more, you have options. The insurance world is keeping pace with new technologies – all you need to do is call your United Insurance agent to talk about your needs. Smart businesses need Smart insurance and we’re here to help.