Tech Talk – Learn the Lingo of Technology Insurance

Every company should have some form of Technology Insurance as a part of their risk management strategy. Even companies that need comprehensive Technology insurance coverage are not limited to those dealing specifically with the design, manufacturing, or serving of business or consumer technology. Practically every business employs technology on some level, and thus is susceptible to “Cyber Risk”. It is important to note that “Cyber Risk” is not covered under your General Liability Insurance Coverage. (G.L.I. is for bodily injury or property damage to others.) Since much of technology involves “intangibles” like data, designs, etc. you need Professional Liability Coverage to cover these risks. Technology Insurance is basically Professional Liability Insurance that is customized for Technology companies. In order to get a better idea of how cyber risk can affect your business refer to the common technology insurance terms below.

Because of the rapidly changing field of technology and technology itself, insurance terms and definitions may vary from carrier to carrier. Always consult a knowledgeable technology insurance agent before purchasing any technology insurance coverages.


Cyber Risk – Umbrella term for various instances of possible loss faced by any company utilizing technology.

Cyber Liability Coverage – coverage for liability and expenses to your company because of a cyber risk loss

Electronic Data Processing Property Coverage – blanket term usually referring to electronic data, edp equipment, mobile communication property, and communication property. ​ It is very important to have this coverage and to be clear about what this coverage does and does not mean to your individual carrier.

Intellectual Property Coverage – coverage for intellectual property or patent infringements including trademark, copyright, or patent violations. This coverage is usually available in two parts, one part in the case where you are responsible for intellectual property infringement and one part in the case where someone has violated your own intellectual property rights.

Common Types of Losses as a Result of Cyber Risk

Errors & Omissions – Umbrella term for any loss caused by an error or omission on the part of your company.

  • Data Breach / Data Loss
  • Unfulfilled Contract or Warranty

Data Breach / Data Loss – Loss or corruption of company or client data. This includes, but is not limited to:

  • Stolen/misplaced hardware (laptop or flash drive)
  • Malicious software (intentionally/unintentionally introduced to company’s or client’s system)
  • Software Glitch (malfunction causes loss or misplacement of data)

Personal Injury (Digital) – Defamation caused to an individual or company through digital media including:

  • Company Website
  • E-mail
  • Social Media

This is just the tip of the iceberg. When you’re looking to keep your business & technology secure, make sure to speak to an insurance agent who specializes in Technology Insurance!