IT Companies have made India famous across the World. They are contributing Big-Time to the growth of the Indian economy. The rapid growth in the IT sector is because of a number of individual success stories of small IT Companies in India.
Insurers have realized the value of IT Companies and offer a number of insurance plans to protect their businesses. So why do IT Companies need insurance?
IT Companies face danger to property and equipment. Employees fall sick and accidents may take place at the work-place. But, IT Companies face an even bigger threat…Integrity of employees (data theft) and cyber fraud.
Why IT Companies Need Insurance?
IT Companies are all about classified data. There’s layers and layers of classified data. This makes the IT Company vulnerable to Fraud. An IT Company badly needs a cyber risk insurance plan.
What does the cyber risk insurance plan do? Well, it protects your IT Firm from a loss arising from a data breach. This could be a glitch in the payment gateway or even cyber fraud.
The cyber risk insurance plan is a twin protection plan. It protects your business from a data theft committed by employees and also your customers in case of a data breach.
1. Business needs Key-man Insurance?
The IT Companies in India must avail key-man insurance. On a demise/illness/accident of a key employee like a Director or a Product Manager, the IT Firm suffers.
Key-man insurance protects the business from the loss of a key employee, without whom the IT Firm would struggle to function. The IT Firm would get a lump sum payout (pre-determined amount), on the death/illness/accident of a key employee like a Director.
IT Firms also require directors' and officers' liability insurance. Many third-parties can challenge the decisions of directors and officers of a Company and sometimes, compensation must be paid.
Customers, employees or even vendors can challenge the decisions made by Directors or officers in their official capacities. The directors' and officers' liability insurance settles the claims.
2. IT Firms require Group Personal Accident Insurance
IT firms do offer group personal accident insurance to employees. This policy offers financial support to the employees of the IT Firm, in case of an accident. This is for permanent or partial disability. The payout depends on the severity of the accident. In case of a death, the nominees will be paid a lump-sum. This helps them to meet living expenses.