New Obstacles for Tech Business Owners
Despite the resilience of various sectors within the tech industry, COVID-19 and the shifts in our economy have created new obstacles for tech business owners.
Tech component manufacturers are expected to see supply chain interruptions and delays in production precipitated by pandemic lockdowns, an especially significant concern for tech manufacturers with few or international suppliers. These delays are likely to impact deadlines, contracts with distributors, and sales growth — and ultimately lead to costly litigation.
For startups, the early days of the pandemic saw a slowdown in funding from Silicon Valley venture capital firms (Crunchbase). This may hinder fledgling tech companies that need funding to begin operations and companies anticipating additional rounds of funding to maintain their operations.
Across IT services, network security, software as a service (SaaS) and many other sectors, more employees than ever are working remotely. This decentralized workforce poses its own challenges, as generally employers must abide by the employment laws of the state in which employees are working rather than the location of the employer. Therefore, tech companies and other employers utilizing remote workforces have even more complex employment and wage-and-hour regulations to consider.
Perhaps these trends are what have led many tech company business owners to identify directors and officers (D&O) liability as one of their highest concerns.
What Your Insureds Should Be Considering
CID’s Management Liability product offers many competitive coverages to address exposures and alleviate concerns. Product features include:
- Lifetime Occurrence Reporting Provision for former directors and officers
- $1 million additional Side A coverage automatically provided to protect the personal assets of individual directors and officers in the event the company is unable to provide indemnification
- $250,000 sublimit for shareholder derivative demand investigation costs
- $100,000 sublimit for wage-and-hour claims, including defense cost and indemnity in most states
We have been competitively and successfully helping technology companies satisfy their management liability needs throughout the pandemic. Additionally, we have the capability to round out your specialty lines coverage with our Errors and Omissions, Media and Privacy (EMP) product and address your excess needs with our Excess Management and Professional Liability product!
For quotes or questions, please contact Lexi Johnson at Lexi@cidinsurance.com.
Want to Learn More About Technology Policies?
CID has partnered with our carrier experts to put together educational content that will teach you about all the important coverages relevant to the many different Technology businesses. In the video below, we go over coverages, claim examples, the product appetite and everything else you need to know about both Technology & Cyber Insurance.
Our goal is to make writing Technology Insurance quick and easy for you. Please visit our website for applications. For your smaller policies, we encourage you to try our web quoting options with Hiscox and USLI.