Managing global risk exposure in tech

Internet service providers, web designers, programmers, smart technology specialists and many others contribute to the UK’s success in the tech sector. The country’s 200,000 technology businesses are among the best in the world, but their success exposes them to risks on a global scale. Brokers must work alongside these dynamic firms to help them mitigate the risks.

Firms are exposed to risk in a variety of ways. From the need to employ overseas talent and their global supply chains, to their desire to seize the opportunities of overseas markets. Although there are rewards to be had, there are many threats and tech firms need support from insurance brokers who understand the sector.

International challenges

Working abroad, and engaging contractors overseas, can come with a host of issues. Data protection laws differ across borders, which has the potential to lead to lawsuits and fines. Problems with intellectual property may arise and businesses could have their reputations damaged by less than reputable workers doing unsatisfactory work.

Things may also take longer than expected as a result of an international workforce, leading to a loss of profits. And, of course, cyber security issues are also prevalent, especially for businesses which share large quantities of data through the cloud. There is a need for specialised coverage in the sector and it’s up to brokers to ensure that those who need this support can access it.

As businesses move into US and EU markets, there’s a greater need for legal assistance. Though the tech sector in the US is a favourable environment for tech businesses, the potential for a lawsuit in the case of an accidental intellectual property breach is sometimes unavoidable. Intellectual property violations can damage the reputation of businesses, leading to further damages. GDPR rules within the European Economic Area can differ by country and can come with unique challenges for businesses leading to a higher chance of fines and legal trouble.

A package for brokers

The MarkelTech offering covers a wide range of risks and includes cyber security coverage, helping mitigate the cost of cyber emergencies, and insuring against reputational harm from cyber sources. We also offer professional indemnity insurance, public and products liability coverage, property and business interruption insurance, all developed with technology businesses in mind.

The package is built for a global sector and is an important tool for brokers. It includes services such as the eRiskHub, allowing for 24/7 access to information related to cyber security and cyber risk. Our cyber incident response service is also 24/7, allowing brokers access to a dedicated team of specialists in both crisis and PR management. We have an additional 24/7 phone line to our solicitors as well. Our law team provides a contract review service, which allows for brokers and businesses to know the validity of a contract across 70 different jurisdictions, allowing for our brokers and clients the knowledge that their contracts are upheld wherever they land.

Filling in the gap where there was a need for insurance tailored to the technology sector, MarkelTech is the package businesses need to support clients with international aspirations.

Learn more about how Markel’s insurance offering can support you and your clients.