For complex tech business insurances, such as Professional Indemnity, Cyber Risks, Intellectual Property and D&O coverage, there are growing concerns about using an online short-form application process.
A short-form application is generally used by direct Insurers to sell off-the-shelf insurances online and utilises a cut-down question set, supplemented with a list of potentially problematic assumptions about you and your business.
Like most online services you are required to agree these assumptions to buy the service. The problem is that most insurance buyers do not properly read the small print and understand what exactly they are agreeing to at that time.
A traditional long-form risk presentation is structured to provide a specialist insurance underwriter with all the information they need to really understand your business risks and financial vulnerabilities. That way they can customise your coverage to this knowledge.
Three essential actions are needed to avoid disputes with Insurers down the line:
1. Develop accurate risk information for yourself and your insurers
Every tech business is different so communicating structured information, about the risks that you face and the strategies employed to manage them, is crucial to achieve the right blend of insurance coverage and cost.
This is particularly important for tech businesses that operate in high risk and newly emerging, therefore little understood, areas such as artificial intelligence and blockchain development.
2. Read through to fully understand your policy cover
Many Insurers are now reining in the coverage they are willing to provide in the uncertain tech landscape.
Whilst the titles of the various policy types are the same for all Insurers, the actual coverage provided can vary wildly because:
there are no regulations about providing a minimum standard for any business coverage apart from statutory employers’ liability
individual insurers act in their own best interest and always seek to limit their exposure to high frequency and high value claims
3. Use a tech specialist insurance broker that:
has developed a friendly and efficient process to identify the nature of the legal and financial threats your business faces
assembles and compiles all necessary information to create highly professional insurance applications on your behalf
advocates you to an array of major tech insurers that they have been placing insurance with for many years
expertly challenges what is offered by insurers and negotiates what is required
explains your policy wordings in detail and highlights terms and conditions that may be not be immediately apparent to you
provides a clear understanding of your coverage in summary documents to you
represents you in the event of a claim
challenges Insurers about exclusions that should not be applied or when a policy interpretation is incorrect
rapidly responds to your requests and questions
frees you to concentrate on your business rather than have you learn the trade of insurance underwriting.
Comments