Insurance Requirements in Technology Contracts
Insurance clauses in customer and vendor contracts can drive limits, coverage types and certificate requests. Reviewing those requirements before signing can help avoid commitments the existing program does not satisfy.
Match the insurance program to the contracts, technology and growth stage.
Technology companies can create losses that do not look like traditional property or general-liability claims. The right review starts with what you sell, what you promise customers, what data and systems you touch, and how the company is funded and staffed.
Questions worth answering before you go to market.
What information should a technology company prepare for a quote?
Useful information often includes revenue, headcount and payroll, services and products, customer contracts, largest clients, data handled, security controls, claims history, funding and ownership, geographic reach, and current insurance requirements.
Why review customer contracts with insurance?
Contracts can require specific policies, limits and endorsements and can also create indemnification obligations. The insurance program should be compared with those promises rather than reviewed in isolation.
Can cyber and technology E&O overlap?
They can. Some policies combine cyber and technology professional liability, while others separate them. The trigger, exclusions, limits and allocation between coverage parts should be reviewed on the actual form.
Coverage descriptions are general. Actual coverage depends on the specific policy forms, endorsements, limits, exclusions and facts of a claim.
Explore the exposures behind the policy names.
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