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Navigating technology's impact: Ensuring comprehensive insurance coverage for businesses

By Mark Perry | August 16, 2023

As businesses embrace technology-driven solutions to enhance efficiency, a crucial question arises: are insurance programmes equipped to effectively cover potential claims when something goes wrong?
Financial, Executive and Professional Risks (FINEX)|Insurance Consulting and Technology

In today's fast-paced world, technology has become integral to both personal and professional lives. As businesses embrace technology-driven solutions to enhance efficiency, a crucial question arises: are insurance programmes equipped to effectively cover potential claims when something goes wrong?

Evaluating your insurance coverage

Expanding into the realm of technology requires companies to thoroughly review their insurance coverage to ensure it remains comprehensive and appropriate. Ensuring that your business description includes all the necessary elements that encompass the activities you undertake, including any software services and products you provide, is vital. Additionally, consider how these technology services and products are defined within your policy and whether the language used adequately accounts for them. Failing to do so may result in insurers refusing indemnity due to non-disclosure.

Negotiating coverage and exclusions

The breadth of these definitions, as well as insurers' willingness to cover all potential exposures, can be subject to negotiation. While insurers may seek to exclude coverage for certain aspects of your business, it's essential to address these concerns during the negotiation process. This ensures that your insurance provider can offer the right coverage to safeguard against potential risks, such as products and bodily injury exposures.

Cyber exposures and professional indemnity insurance

With the increased reliance on technology, insurers have been working to clarify coverage in relation to cyber exposures. They have introduced exclusionary or affirmation language into professional indemnity policies to address this. While cyber-related risks might not traditionally fall under professional indemnity insurance (PII), the line between these areas has blurred. Insurance providers utilise various clauses, and it's crucial for each insured party to ensure that the proposed language is "fit for purpose."

Avoid relying solely on cyber policies

Assuming that a cyber policy, if one exists, will cover all relevant exposures can be risky. In fact, professional services elements are often excluded from traditional cyber policies. To safeguard your business, it is essential to review your insurance coverage annually and be fully aware of all services offered throughout your organisation, including overseas operations and any recent acquisitions.

Illustrative scenario

The importance of comprehensive insurance coverage in the technology sector. Let’s explore a scenario involving a global technology service provider, highlighting the value of comprehensive insurance coverage.

The provider encounters a significant challenge when one of its software products malfunctions, leading to substantial financial losses for one of their clients, the affected third party.

Comprehensive insurance coverage

Through diligent evaluation and updating of their insurance programme, the global technology service provider had taken proactive measures to address potential technology-related claims. Their insurance coverage included a tailored Professional Indemnity policy designed to accommodate their technology services and products specifically. This strategic approach ensured that the provider had the necessary protection in place when an unforeseen disaster struck.

Effective claims advocacy

Upon the insurer receiving notification of the claim, a dedicated team of Claims Advocates working on behalf of our client, consisting of legal and regulatory experts, acted promptly.

Using their in-depth understanding of the client's business and the technology involved, they meticulously collected evidence and engaged in negotiations with insurers.

Successful outcome

Due to the expertise of the Claims Advocates and the comprehensive coverage provided by the insurance programme, a favourable outcome was achieved for the affected third party thereby mitigating the financial impact of the incident and reinforcing the Clients reputation as a reliable technology service provider.


This illustration exemplifies the value of comprehensive insurance coverage in the technology sector. By diligently reviewing and updating their insurance programme to address potential risks, the global technology service provider demonstrated their commitment to protecting their clients' interests.

Partnering with a reputable risk advisor supports client-centric protection and outcomes in the ever-evolving world of technology. Be proactive, review your insurance coverage regularly, and safeguard your business's future.


Associate Director


Head of Professions/Financial Services

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