In today’s business climate, organizations are expected to extend credit to their customers, as it enhances purchasing power and creates opportunities that may not have been available otherwise. However, offering credit is a balancing act for most businesses, as just one late payment or customer insolvency can put stress on an organization’s cash flow and profitability.
Technology companies own valuable intangible assets, such as sensitive data, software and intellectual property, which a general liability policy doesn’t account for. General liability provides protection in the event of bodily injury or property damage. Technology insurance coverage is designed to protect against the significant risk of economic loss related to intellectual property, network liability and network and cyber property security.
Understanding the complexities of intellectual property is key for technology companies because a majority of their market position is based on innovations and expertise. Intellectual property refers to the intangible assets of a business, including patents, copyrights, trademarks and trade secrets. These assets are often the most valuable and least understood assets of a corporation.
Accounts receivable are often a business' largest asset. If your customers are unable to pay what they owe, potential credit losses can present a substantial threat to your business. Trade credit insurance -- also known as credit insurance or export credit insurance -- is a form of insurance that transfers risk for businesses seeking to protect their accounts receivable against nonpayment.