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If you’re an Australian tech startup, you’ll spend most of your days programming, testing, coding, and debugging. And with all this technical detail, you may have yet to consider whether your business needs insurance. Read on to find out why insurance policies are necessary for tech startups and the types of insurance you should consider.
What types of insurance do tech startups need?
According to Austrade, the tech startup industry is worth $167 billion. The types of work that technology startups and IT professionals work on comes in various forms and sizes. With many initially developed and financed by their founders after identifying a market need for a product or service, the early stages of the business can require funding from external parties. If your tech startup doesn’t have a credit history, traditional lending sources through banking institutions may not be available. Many tech startups rely on angel investors, venture capitalists, incubator firms and crowd-sourcing for funding, which can open them up to exposures you may not have considered.
Since a tech startup can never be guaranteed to succeed, Atlantic Insurance can tailor policies to provide comprehensive insurance coverage for various risks that information technology startups and small businesses face. From cyber insurance to general liability insurance, our tailored insurance solutions ensure all the bases are covered in the event of a loss or claim.
Essential business insurance for tech startups
With the technology sector evolving so fast, the boundaries of innovation and market disruption are often pushed. To mitigate potential setbacks, there are several insurance policies for tech startups to consider.
Data breaches and cyber security threats
Tech startups can be targets for cyber-attacks due to their abundance of digital information. If your business has a data breach, it may lead to significant financial losses due to recovery costs and fines. It would also damage your company’s reputation, which may be irreparable. Atlantic Insurance policies can help protect your tech startup against cybercrime and security threats.
Liability issues
Often at the forefront of creating new products and services, tech startups know that with innovation comes the risk of liability. From service failure or product malfunction to other legal actions from partners or customers. These liability issues can result in costly compensation claims and legal battles.
Property damage
If a tech startup has physically damaged assets, it could put you out of business. We can help you cover the types of assets that you own or use, including your office spaces, equipment, hardware, and any physical inventory. The damages we can cover you for could be caused by theft, accidents, vandalism, or natural disasters.
Professional errors and omissions
Have you considered what could happen if your tech startup provided a product or service that didn’t meet your customer’s expectations or specifications? You could be liable if this happens, and they incur financial loss or damage. This type of insurance can safeguard you against this.
Legal and regulatory compliance
In the technology industry, rules and obligations change so fast that it can take a lot of work to keep up. But if your tech startup fails to adhere to specific legal and regulatory requirements, your business could incur fines, legal penalties, and damage to reputation — all potentially harmful.
There are many other types of tech startup insurance to consider, including:
- Professional indemnity insurance
- Cyber liability insurance
- Product liability insurance
- Workers’ compensation insurance
- Property insurance
- Intellectual property insurance.
Comprehensive Business Insurance For Tech Startups with Atlantic Insurance
With decades of experience, Atlantic Insurance Client Managers have up-to-date tech startup insurance knowledge and can create a tailored insurance plan to meet your specific requirements. With personal claim handling and a focus on risk management education, Atlantic Insurance policies are ideal for your tech startup. We offer competitive policies to suit your budget; call us on (03) 9836 3733.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.