Owners of tech businesses shouldn’t have to choose between preventative risk management and profitability. Business insurance may be the roof over a company’s head, but contracts are the foundation under its feet.
CHICAGO, IL (PRWEB) May 08, 2013
As data breaches increase in frequency around the world, tech companies responsible for collecting and storing customer data – and for building the websites and software where customers enter this data – are at risk of being held liable for damages that they failed to prevent. Companies that lack adequate legal and insurance protection could find themselves facing tens of thousands of dollars in settlement or judgment costs, if not more.
But for many small tech firms, the cost of implementing legal safeguards can be prohibitive. Because of the complex and highly technical nature of most IT work, lawyers often spend billable hours learning the technology involved in a project in order to draft contracts that accurately represent a project’s risks and limit a company’s liability against those risks. This, of course, greatly increases the cost of each contract an IT firm writes.
Going without contracts, on the other hand, is a risk-management nightmare, and leaves tech firms exposed to far more liability than they would be with contracts in place. To help small technology companies manage their risks without draining their financial reserves, TechInsurance, the nation’s leading online insurance provider for information technology businesses, has partnered with ContractEdge.com to make three of the most popular contracts used by tech entrepreneurs available at TechInsurance.com.
“Owners of tech businesses shouldn’t have to choose between preventative risk management and profitability,” said Ted Devine, CEO of TechInsurance. “Business insurance may be the roof over a company’s head, but contracts are the foundation under its feet.”
Owners of technology businesses can download the following contracts by visiting the TechInsurance website:
- Mutual Non-Disclosure Agreement: Intended for use whenever a business owner needs to share sensitive or proprietary information with a business partner or employee, the NDA outlines protocol for handling sensitive data as well as legal remedies for situations in which any party breaches the agreement’s terms.
Devine noted that introducing contracts is an essential risk management strategy for any tech company. “Having free access to essential contracts lets tech business owners strengthen the viability of their business and significantly decrease their risk exposure without breaking the bank,” he said. He added that technology firms that don’t yet have insurance in place may be able to qualify for lower premiums by introducing appropriate contracts.
TechInsurance provides business insurance for small and micro businesses in the technology sector, as well as educational materials designed to help owners of small businesses understand the risks they face and make educated decisions about the policies best suited to managing those risks.
TechInsurance is a web-based insurance agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their business liability insurance needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For more information, visit http://www.techinsurance.com.