The rapid pace of innovation and growth across the tech, media and biotech industries creates an ever changing landscape of risk exposures. These industries are in demand as technology advances to new levels and the global marketplace is truly here. On a basic level your business faces the same general risks as all other businesses. On a higher level, the risks can subject you to serious loss and reputational disaster. Some specific key risks are noted below.
Professional negligence, errors & omissions and international risk
Data Loss, Hacking and Corporate espionage
Intellectual property and sub contractor risk
There is no point spending money on insurance if it isn’t going to pay out when you most need it. The devil really is in the detail for tech & media risks. It is critical that trading activities, general contract wordings, sub contractor relationships and contract agreements, and new product developments are all understood in great detail.
This is our job. We question everything, we get into the nitty gritty of it all, we help you identify and understand where is can all go horribly wrong.
This means talking with you, checking contracts for insurance risk implications and keeping in touch throughout the year to double check any new developments in your business.
Not all professional indemnity insurers provide the same levels of cover. This is a critical issue and very important. Your policy cover must be as wide as possible, ensuring there are no ‘grey areas’ of policy cover. Your insurance must fit with the risk exposures you actually face.
International contracts, particularly those written in the USA will contain warranties and conditions that won’t normally be covered by a standard professional indemnity policy. Data transfer risks and liabilities between the USA and Europe also needs to be understood.
It is critical that your broker properly understands the contractual relationship you have with outsourced suppliers. They need to understand the laws of the country in which the subcontractor operates, the levels of insurance cover they have and their data protection systems.
A young business with phenomenal growth over a 3 year period and now employing over 70 software engineers and creatives.
As with many rapid growth businesses, their previous broker had not kept pace with the risk changes that occurred over that period. They simply sold more expensive insurance cover and took the company for granted.
We uncovered significant errors in policy cover construction, ambiguity between broker and insurer wordings, considerable under insurance, over 20 warranties and conditions precedent, making it difficult for the company to understand them never mind comply with them!
Rapid growth companies are focused on growing their business and can have a tendency to feel almost immortal, paying little attention to downside risk.
Our concern was that a large claim could disrupt cash flow and impact on company reputation at a time when the company was pushing on. Lost customers would take time to replace and therefore income protection had to be properly considered.
Our job was clear. restructure the insurance programme, dramatically reduce the warranties and bring clarity to the underwriters. Ambiguity in insurance policies almost always causes legal disputes and fast growth companies don’t want to be distracted by this.
Our current client count within this industry