Insurance for Edmonton Technology Companies and Startups
Edmonton technology companies and startups need specialized insurance to protect against risks like lawsuits and cyber-attacks.
It’s important to tailor your business liability insurance to your tech company’s specific risks to financially protect it.
A Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your Edmonton tech company or startup.
As Canada’s leading insurance provider, our team of insurance experts is here to make sure you have the best coverage for your unique business needs.
We make the process easy by getting business insurance quotes for you and giving you policy coverage options that you can choose for your tech company.
Tech insurance is recommended for:
- IT consultants/firms
- Software developers
- IT consultants
- Computer installation
- Computer repair
- Mobile apps
- E-commerce
- Software as a Service (SaaS) companies
- Startups
- Web developers and designers
- Robotics companies
- Electronics manufacturers
- AI data centres
- Telecom companies
Edmonton’s tech industry
Edmonton is a thriving tech hub and it’s a global leader in artificial intelligence (AI) and machine learning. Edmonton is home to the Alberta Machine Intelligence Institute (Amii), one of three Canadian AI centers of excellence.
How can business liability insurance help your Edmonton tech company?
Your client sues you for delivering software that’s full of glitches. The client sues you for delivering a product that wasn’t up to the required specifications and caused financial loss. Your professional liability insurance could cover the legal costs.
Liability insurance is an essential part of your tech and startup insurance package. Here are the liability coverages that you need to help protect your Edmonton tech company from lawsuits.
Professional liability insurance
Professional liability insurance helps protect Edmonton tech businesses from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance. Remember that legal fees can and legal settlements can be extremely expensive without professional liability insurance.
What does E & O insurance cover? Negligent acts, errors, or omissions related to your tech company or tech startup business’s services. It also covers failure to deliver a service as promised.
Cyber liability insurance
Do you keep sensitive financial information and data belonging to your clients? Cyber liability insurance will help protect your Edmonton tech company financially protected should there be a cyber-attack. Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
Directors and Officers insurance
Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer against legal claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.
This type of insurance also covers:
- Negligent acts and allegations of misrepresentation
- Breach of legal or fiduciary duties
- Decisions that result in adverse financial consequences for shareholders
- Wrongful dismissal and employee discrimination claims
- Failure to adhere to federal and provincial laws and regulations
Commercial general liability insurance
This is necessary liability insurance for Edmonton tech businesses. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property on your own.
If you were sued, CGL insurance would cover the legal costs to defend the claim against your tech firm in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Edmonton tech or startup company. Commercial umbrella insurance, also known as umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.
It’s important to note that umbrella insurance applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
Product liability insurance
Product liability insurance covers claims due to defects or problems with products that you make or sell. It protects your technology company against third-party legal liability arising from physical damage or bodily injury as a result of an alleged product failure or defect.
It is important to have this type of insurance in place because it can be expensive to defend against a product liability lawsuit.
What product liability insurance covers:
- Design defects: There’s something wrong with the product’s design.
- Manufacturing defects: Something went wrong during manufacturing.
- Marketing missteps: There’s a mistake in marketing materials, such as improper labels.
- Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.
What other insurance do Edmonton tech businesses need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Edmonton tech or startup company if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft. It also covers your tech company’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports your Edmonton tech business when it can’t operate due to a covered loss.
Examples of losses that can force your business to shut down:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you are using your car for your job in Edmonton’s tech industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
How much does Edmonton tech and startup insurance cost?
The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.
What do I do if I have a claim against my Edmonton tech business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s an insurance checklist:
- Do you have the best business insurance rate that suits your industry/sector?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Edmonton tech or startup company. Our experts are available now to help you navigate the business insurance journey to protect your Edmonton business.
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