Hiscox · compared independently · advice from Finass
Insurance for technology companies through Hiscox
At a technology company the loss rarely lies in physical things: it is a fault in a release, a migration that goes wrong, or a client that loses its own turnover as a result.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your situation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Software and IT companies almost always cause pure financial loss: nothing is damaged and nobody is hurt, but the client does suffer a loss. That is precisely the kind of loss that falls outside an ordinary public and employers' liability insurance (AVB). The emphasis therefore lies on professional indemnity, with data cover alongside it, because you usually hold your clients' data as well.
The second peculiarity is contractual. In this sector liability is largely governed by the contract: service levels, penalty clauses, indemnities and warranties about fitness. Whatever you take on there over and above your liability in law is normally not insured by a policy. The purchasing conditions of your largest client therefore help determine whether your cover is right.
We compare this set-up with what other insurers offer for this sector and match the description of your activities to what you actually supply. You can read more about the wider product line at Hiscox.
The structure of the cover in three parts, with an overview per situation below.
Basic cover
The basic cover insures the core of your insurance for technology companies. We show what Hiscox and other insurers offer within it.
Injury to persons
Property damage to third parties
Employees included
Retroactive cover (prior risk)
Extended cover
On top of that to damage to third parties, employers' and product liability and damage during work at the client's premises.
Employers' liability at the client's premises
Product liability
Agency workers, interns & volunteers
Care, custody and control (property in your care)
Complete package
The most complete cover. We compare Hiscox's extended version with the market.
Environmental impairment (unforeseen, limited)
Retroactive cover (prior risk)
Higher sums insured
What we do
What we do
At Finass
Direct with Hiscox
Comparison across several insurers
Yes
No
Advice based on your own situation
Yes
Sometimes
One point of contact for claims
Yes
Sometimes
Cancellation with your current insurer arranged
Yes
No
We determine whether Hiscox is the best choice
Yes
No
Advice fees for you as a customer
No
No
This overview concerns our service, not the cover. What is actually covered is set out in the policy conditions and on the insurer's insurance card (verzekeringskaart); you receive both before you take out cover.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Your client's loss is pure financial loss
An integration that sends invoices twice, a migration in which records disappear, a release that brings the webshop down for a weekend: nothing is broken and nobody is hurt, but there is still a bill. Liability insurance for businesses covers damage to property and injury and leaves this aside. Only professional indemnity cover picks it up, provided your activities are correctly stated on the policy.
What you took on by contract is not automatically insured
Service penalties, discounts for failing to meet an uptime commitment and indemnities towards your client are contractual obligations, not liability in law. Insurers almost always exclude that additional exposure. A warranty that software is fit for a particular purpose likewise increases your exposure without the policy moving with it. Have your terms of supply and your policy assessed together before you sign a large contract.
Doing your own work again is at your own cost
The hours spent rewriting code, carrying out the assignment again or repaying part of the fee fall outside the cover. That is the heart of this type of policy: what is insured is the consequential loss the client suffers on top of that, not the performance you should have delivered in any event. So count that remedial effort into your project calculation, not into your insurance.
Open source and third-party rights
If you use third-party components, you take their licence conditions with you into what you supply. A claim for infringement of copyright or trade mark rights is covered to a limited extent on some policies; patent infringement almost never is. Keep an up-to-date list of which components and licences are in which product. Without that overview, mounting a defence to a claim is impossible.
Retroactive cover (prior risk)
Retroactive cover (prior risk) Included for your staff during work.
Defence & legal costs
What does your premium depend on?
Annual turnover and type of service. Bespoke development weighs differently from a standardised subscription product with many small customers.
Size of your largest assignment. It is not the average project but the heaviest contract that determines how large a loss can become.
Type of customers. Whether you supply small businesses, large groups or government bodies changes the strength of the other party.
Sales area. Customers in North America bring a different litigation and cost risk from a European customer base.
Terms of supply. Your own conditions with a workable limitation of liability improve your position on acceptance.
Retroactive date and limit. Insuring work supplied earlier and the level of the sum insured work through directly into the premium.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your situation, your risk and your wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
As a software company, do I also need public and employers' liability insurance?
Usually yes, but as the smallest item. Your staff visit clients, equipment is kept at third parties' premises and there are visitors at the office. That cover is needed for injury and damaged property. The financial loss your client suffers through an error in your work is precisely what falls outside it. That is professional indemnity.
Are penalties under a service agreement covered?
Normally not. A penalty or service credit is a contractual arrangement and not a duty to pay compensation in law, and insurers exclude it. What is insured is the actual loss your client suffers and for which you are liable in law. So look critically at penalty clauses in new contracts. The policy does not absorb them.
We supply customers in the United States. Does that change anything?
Yes, considerably. Litigation costs are higher there and the chance of a claim is greater, so insurers assess that turnover separately and sometimes exclude the territory. State the share of American and Canadian turnover when you apply. If you do not, cover for a claim from that region is not a matter of course afterwards.
We use open source. Is a licence claim covered?
To a limited extent. Infringement of copyright or trade mark rights is covered on some policies, patent infringement almost never. More important is your own record-keeping: keep track of which components and licence forms are in which product supplied. Without that list you cannot show what you used when a claim comes in, and mounting a defence is practically impossible.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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