Why Winnipeg ICT Businesses Need Customized Insurance

Insurance for Winnipeg Information and Communication Technologies Businesses

November 21, 2024 / 5 mins read

Winnipeg’s information and communication technologies (ICT) sector is known for its innovation, but there are risks that technology companies can face. Business liability insurance can help protect your business financially, should you face a lawsuit.

Did you know? Information and communication technologies insurance needs to be customized to cover all the risks in your industry.

A Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your ICT business in Winnipeg.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.

We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Winnipeg information and communication technologies business’s specific needs.

ICT insurance coverage is recommended for:

  • Software as a service (SaaS)
  • Data centres/processing
  • Digital media
  • Interactive entertainment
  • Agritech
  • Telecommunications
  • App developers
  • Computer system design and related services

Winnipeg’s information and communications technologies industry

Winnipeg has a cutting-edge network of ICT expertise. It has more than 1,300 ICT companies, providing thousands of jobs. Winnipeg has both small and medium-sized ICT companies along with a large entrepreneurial developer community with many high-tech start-ups.

Liability insurance is an essential part of your ICT insurance package. Here are the liability coverages that you need to help protect your Winnipeg information and communication technologies company from lawsuits.

Professional liability insurance

Professional liability insurance helps protect Winnipeg ICT businesses from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance. This type of insurance takes into account the potential risks associated with your tech company’s risks. Remember that legal fees can be prohibitive and damage awards can be extremely high.

E & O insurance covers: Negligent acts, or errors, or omissions related to your Winnipeg ICT business’s services and it also covers failure to deliver a service as promised.

Directors and Officers liability insurance

Does your Winnipeg tech and communication technologies business have a board of directors?

Directors and Officers insurance provides financial coverage for legal expenses to help defend a board member or officer against claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.

This type of insurance also covers:

  • Negligent acts and allegations of misrepresentation
  • Breach of legal or fiduciary duties
  • Decisions that result in adverse financial consequences for shareholders
  • Wrongful dismissal and employee discrimination claims
  • Failure to adhere to federal and provincial laws and regulations

Commercial general liability insurance

This is necessary liability insurance for Winnipeg ICT businesses. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.

If you were sued, CGL insurance would cover the legal costs to defend the claim against your Winnipeg ICT firm in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.

What kind of risks does commercial general liability insurance cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Cyber liability insurance

Do you keep sensitive financial information and data belonging to your clients? Cyber liability insurance will help protect your Winnipeg tech company financially protected should there be a cyber-attack. Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.

Commercial umbrella insurance

You may want to consider commercial umbrella insurance for your Winnipeg ICT company. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.

It’s important to note that umbrella insurance applies only to expenses related to liability such as legal fees, court fees, and legal settlements.

Product liability insurance

Product liability insurance covers claims arising from defects or problems with products that you manufacture or sell. It protects your Winnipeg technology and communication technologies company against third-party legal liability arising from physical damage or bodily injury as a result of an alleged product failure or defect.

It is important to have this type of insurance in place because it can be expensive to defend against a product liability lawsuit.

What product liability insurance covers:

  • Design defects: There’s something wrong with the product’s design.
  • Manufacturing defects: Something went wrong during manufacturing.
  • Marketing missteps: A mistake in marketing materials, such as improper labels.
  • Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.

Admitted insurance

Is your Winnipeg ICT company doing business in the United States? You will need admitted insurance. Admitted insurance is coverage offered by insurance providers who are licensed to operate by state insurance departments in the U.S.

Many jurisdictions require companies to have locally admitted policies in place if they have physical assets, such as buildings and stock, in that jurisdiction, including most of the U.S.

Ask Western about admitted insurance if you operate in the U.S., Europe, or Asia.

Here’s what you need to know about cross border insurance.

What other insurance do Winnipeg ICT businesses need?

Commercial property insurance

Commercial property insurance provides financial support to replace or cover repairs to your Winnipeg tech company if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Business interruption insurance

This type of insurance supports you when your Winnipeg information and communication technologies business can’t operate due to a covered loss.

There are a number of losses that can force your business to shut down. Some examples are:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with these expenses:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Commercial auto insurance

If you are using your car for your job in Winnipeg’s ICT industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.

How much does Winnipeg ICT insurance cost?

The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.

What do I do if I have a claim against my Winnipeg tech business?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best business insurance rate that suits your industry?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Winnipeg information and communication technologies business. Our experts are available now to help you navigate the business insurance journey to protect your Winnipeg business.

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