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Sophisticated tools, powerful analytics, and deep insights can help you better assess, understand, and manage risks, thereby providing greater protection for your business.
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For communications, media, and technology (CMT) companies, risk management can be challenging, simply because the stakes are so high. Multiple client business functions rely on the services you provide.

Success hinges on the ability to seize opportunities afforded by innovation in a rapidly-changing marketplace – while managing the risks. Data breaches and other cyber risks are growing. Media liability claims proliferate as new formats and distribution channels appear.  Supply chain bottle-necks threaten the global flow of hardware, software, and raw materials. And convergence and collaboration – both between and within sectors – are reshaping the landscape.

Marsh can help you understand and manage these risks using some of the industry’s leading risk assessment tools, data, analytics, and technology. With these tools and one of the CMT sector’s most comprehensive claims database, we quantify and prioritise exposures, helping to educate insurers, then customise coverage to align with your organisation’s risk profile. And, with one of the largest CMT practices in the industry, we have the knowledge of the sector to provide acute insights that help you grow with confidence.

The results: A clearer understanding of your risk management programme, optimised operational costs, and decreased volatility.

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Technology companies face a number of risks, ranging from cybersecurity and data breaches to industry competition, digital business interruption, IT resilience, and even obsolescence as implementation of artificial intelligence becomes more common. These first two risks, cybersecurity and competition, are perhaps the most pressing for technology companies at the moment. Competition for market share is driving a rapid pace of innovation, and new technologies often go to market before all potential avenues for compromise (such as hacking) are identified and addressed. Unfortunately, this can allow unscrupulous individuals to exploit well-intentioned products and services for their own benefit. Data breaches can have serious consequences for companies and consumers alike, which creates a need for strategic risk management planning.

In addition to the usual insurance for employers, including a business owner’s policy for loss and liability and workers’ compensation where applicable, there are several unique coverages that software companies might consider.

First is cyber liability insurance, which can help pay for recovery efforts following a data breach and associated legal fees. Next is errors and omissions (E&O) insurance, which can be useful in situations involving claims regarding performance of your company’s product.

Finally, another possible consideration is fidelity insurance, which is tailored to industries that rely heavily on intellectual property. Fidelity insurance offers protection for your company, as well as clients, in the event that an employee discloses proprietary information.

Similar to software companies, hardware companies require, at a minimum, the same insurance as most other types of businesses. This includes a general business owners’ policy for loss and liability, as well as workers’ compensation, where applicable, and possibly commercial auto insurance, if product deliveries or services occur as part of routine business operations. Additionally, it can be useful for hardware companies to have coverage for business interruption due to supply chain interruptions and protection against lawsuits related to product failure. These coverage plans have various names, depending on the insurer and area of the world, but essentially serve the same function.

Errors and omissions (E&O) insurance is a type of professional liability insurance that can protect companies against damages from claims or lawsuits alleging that the insured party made a mistake related to its provision of business services or products. Situations that might be covered under an E&O plan include those involving claims of negligence, errors in service, or misrepresentation.

Technology errors and omissions (tech E&O) insurance provides coverage beyond a typical E&O policy for the financial losses a firm’s customers might incur as the result of an error or failure in the technology product or service that the firm has provided. For example, if a company's software fails due to a coding error and it causes the software customer to be unable to transact business, the company's tech E&O policy could cover the losses incurred by the customer.

Technology companies, especially those weighing an IPO, should consider their exposure to risks relating to patents, trademarks, copyrights, and trade secrets.

Depending on specific terms and conditions, intellectual property insurance can provide protection from:

  • Defense costs and damages resulting from IP infringement or misappropriation claims brought by third parties.
  • Defense costs and damages resulting from contractual obligations to indemnify vendors, partners, upstream manufacturers, or downstream customers in the event of third-party infringement claims.
  • The costs of defending against third-party attempts to cancel or invalidate registered IP, patent, trademark, or copyright registrations.