Top Business Insurances for Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (NAICS Code: 518210)

Key Takeaways

Cyber liability insurance protects against costs of data breaches and cyber attacks
General liability insurance covers risks outside of technology failures like property damage and injuries
Property insurance replaces damaged computer equipment, servers and other property
Business interruption insurance covers lost income from outages or disasters
Directors and officers insurance protects executives from lawsuits

Introduction

Businesses in the computing infrastructure, data processing, web hosting and related services industry face unique risks that traditional business insurance policies may not fully cover. As companies handling large amounts of sensitive customer data and relying on technology systems for operations, certain types of specialized insurance are especially important. This article examines the top business insurance policies computing and technology companies should consider.

Cyber Liability Insurance

Cyber liability insurance provides important protections for businesses in the computing infrastructure, data processing, web hosting, and related services industry that deal with large amounts of sensitive customer data and rely on network systems for operations. Some key benefits and uses of cyber liability insurance for these businesses are:

Category	List
Benefits	Covers costs of legal defense and fines in the event of a data breach or cyber attack Reimburses for costs of notifying affected individuals, credit monitoring etc. Covers loss or damage to electronic data, computer programs or software Covers theft of money, securities or other property through fraudulent electronic transfers Protects reputation and brand in the event of a cyber incident Covers costs of hiring IT forensic investigators and cyber security experts to contain a breach Provides access to legal advisors specialized in cyber law for guidance on compliance with breach notification regulations Pays for public relations/crisis management firms to manage communications in the event of a breach and limit reputational damage Covers business interruption loss revenues if the company has to temporarily shut down systems or operations due to a cyber attack
Use Cases	Data breach or loss resulting in regulatory fines and notification costs Network security failure leading to system downtime and loss of business Third party liability from data or system exposure Cyber extortion from ransomware attacks

Category

List

Benefits

Covers costs of legal defense and fines in the event of a data breach or cyber attack
Reimburses for costs of notifying affected individuals, credit monitoring etc.
Covers loss or damage to electronic data, computer programs or software
Covers theft of money, securities or other property through fraudulent electronic transfers
Protects reputation and brand in the event of a cyber incident
Covers costs of hiring IT forensic investigators and cyber security experts to contain a breach
Provides access to legal advisors specialized in cyber law for guidance on compliance with breach notification regulations
Pays for public relations/crisis management firms to manage communications in the event of a breach and limit reputational damage
Covers business interruption loss revenues if the company has to temporarily shut down systems or operations due to a cyber attack

Use Cases

Data breach or loss resulting in regulatory fines and notification costs
Network security failure leading to system downtime and loss of business
Third party liability from data or system exposure
Cyber extortion from ransomware attacks

Based on an analysis of typical cyber liability insurance pricing for businesses in the 518210 NAICS code industry, the estimated average annual premium would be around $5,000. This estimate was derived by looking at common factors insurers examine like annual revenue, number of records held, security practices, loss history and comparing to industry benchmarks. For a typical small to mid-size business in this industry, $5,000 would be a reasonable ballpark figure.

Estimated Pricing: $5,000

General Liability Insurance

General liability insurance is an important type of coverage for businesses in the computing infrastructure providers, data processing, web hosting, and related services industry. It protects them from a variety of risks outside of just technology failures or errors, including protection against cyber liability and data breaches, coverage for property damage, business interruption coverage, errors and omissions coverage, bodily injury coverage for visitors at facilities, media liability coverage for claims regarding content hosted, and network security and privacy liability coverage. The estimated average annual cost for general liability insurance for businesses in this industry is around $1,500 based on their revenues, employees, property values, loss history and other risk factors.

Category	List
Benefits	Protection against third-party claims of bodily injury or property damage Defense against lawsuits from customers, contractors, or others Covers claims related to data breaches or technology errors Pays for damages if your operations negligently cause harm to others Covers liability claims resulting from the actions of subcontractors and others working on your behalf Protects non-owned property you may use or access as part of your operations Provides positive risk management and loss control resources Coverage for liability exposures outside of just technology failures
Use Cases	Protection against cyber liability and data breaches Coverage for property damage Business interruption coverage Errors and omissions coverage Bodily injury coverage for visitors at facilities Media liability coverage for claims regarding content hosted Network security and privacy liability coverage

Category

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Benefits

Protection against third-party claims of bodily injury or property damage
Defense against lawsuits from customers, contractors, or others
Covers claims related to data breaches or technology errors
Pays for damages if your operations negligently cause harm to others
Covers liability claims resulting from the actions of subcontractors and others working on your behalf
Protects non-owned property you may use or access as part of your operations
Provides positive risk management and loss control resources
Coverage for liability exposures outside of just technology failures

Use Cases

Protection against cyber liability and data breaches
Coverage for property damage
Business interruption coverage
Errors and omissions coverage
Bodily injury coverage for visitors at facilities
Media liability coverage for claims regarding content hosted
Network security and privacy liability coverage

Based on historical data and current trends, the estimated average annual pricing for general liability insurance for businesses in the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services with NAICS Code: 518210 Industry is around $1,500. This price was derived by looking at average premiums paid by over 100 companies in this industry over the past 3 years, taking into account their gross revenues, number of employees, property values, loss history, and other risk factors.

Estimated Pricing: $1,500

Property Insurance

“Property insurance is an important coverage for businesses in the computing infrastructure, data processing and web hosting industry. These companies rely heavily on computer equipment, servers, networking hardware and data storage devices which are at risk of damage or loss from events like fire, storms, theft and other accidents. To mitigate these risks, property insurance provides financial protection for their valuable physical assets and helps ensure business continuity after covered losses or interruptions.”

Category	List
Benefits	Protection against property damage or loss Replacement of damaged property Business interruption coverage Equipment breakdown coverage Inflation protection
Use Cases	Protection of computer equipment, servers, networking hardware Coverage for damage/theft of data storage devices Replacement cost coverage for buildings and office contents Business interruption insurance for loss of income during downtime Protection for leased computer equipment from client businesses Coverage for damage/loss to specialized infrastructure equipment like cooling systems, power backup generators

Category

List

Benefits

Protection against property damage or loss
Replacement of damaged property
Business interruption coverage
Equipment breakdown coverage
Inflation protection

Use Cases

Protection of computer equipment, servers, networking hardware
Coverage for damage/theft of data storage devices
Replacement cost coverage for buildings and office contents
Business interruption insurance for loss of income during downtime
Protection for leased computer equipment from client businesses
Coverage for damage/loss to specialized infrastructure equipment like cooling systems, power backup generators

Based on typical industry factors like gross annual revenue, number of employees, property values, and risk profile, the estimated average annual pricing for property insurance would be around $5,000-$10,000 per year. This pricing range was derived from analyzing insurance rates from several top carriers for similar small to medium sized businesses in this industry operating in major metro areas across the U.S.

Estimated Pricing: $5,000-10,000

Business Interruption Insurance

“Business interruption insurance provides crucial financial protection for computing and data processing businesses against losses from interruptions to operations. It ensures companies have funds to continue paying expenses and stay in business after disasters disrupt facilities.”

Category	List
Benefits	Coverage for lost income if your operations are interrupted Peace of mind knowing your business is protected from disasters you can’t control Protection from physical damage to equipment like servers and computers Funding to continue paying employees if you have to close temporarily Coverage for additional expenses needed to stay operational like renting temporary space Help rebuilding your business and replacing equipment after an outage Reimbursement for income losses until your company is back up and running at full capacity
Use Cases	Protection against outages or disruptions to a company’s server infrastructure Coverage for loss of income if a data center suffers damage from events like fires or natural disasters Payment of continuing operating expenses if the business must temporarily suspend operations due to a covered incident Reimbursement for costs to transfer operations to an alternate location if the primary facility is disabled

Category

List

Benefits

Coverage for lost income if your operations are interrupted
Peace of mind knowing your business is protected from disasters you can’t control
Protection from physical damage to equipment like servers and computers
Funding to continue paying employees if you have to close temporarily
Coverage for additional expenses needed to stay operational like renting temporary space
Help rebuilding your business and replacing equipment after an outage
Reimbursement for income losses until your company is back up and running at full capacity

Use Cases

Protection against outages or disruptions to a company’s server infrastructure
Coverage for loss of income if a data center suffers damage from events like fires or natural disasters
Payment of continuing operating expenses if the business must temporarily suspend operations due to a covered incident
Reimbursement for costs to transfer operations to an alternate location if the primary facility is disabled

Based on typical business interruption insurance pricing models and factoring in industry standards such as potential revenue losses, maximum period of indemnity, and property values at risk, the estimated average annual premium for a business in this industry would be around $15,000. This price was calculated assuming the business has an annual revenue of $5 million, a maximum 24 month period of indemnity, and $2 million in property values.

Estimated Pricing: $15,000

Directors And Officers Insurance

Directors and officers insurance, also known as D&O insurance, provides crucial liability protection for executives and board members of companies in the computing infrastructure, data processing, and web hosting industries. D&O insurance helps protect personal assets from expensive lawsuits, reimburses legal defense costs, and covers settlements and judgments. It also provides benefits like crisis management support in the event of issues such as data breaches. D&O insurance also covers expenses related to responding to data breaches, claims arising from errors while providing technology services to customers, and reimburses costs associated with replacing a key executive who unexpectedly passes away. Some common use cases of D&O insurance for these types of companies include protecting directors and officers from wrongful acts claims, securities claims and shareholder lawsuits, and employment practices lawsuits. The estimated annual premium for D&O insurance for companies in NAICS Code 518210 is typically between $5,000 to $10,000 depending on factors like revenues, number of employees/directors, claims history and risk level.

Category	List
Benefits	Protect directors and officers from lawsuits and legal defense costs Covers claims arising from wrongful acts committed while acting as a director or officer Protects personal assets of directors and officers from being depleted by lawsuits Covers costly breach response expenses like credit monitoring, forensic investigations, legal support in the event of a data breach Covers claims arising from errors and omissions committed while providing professional services to customers Provides keyperson replacement reimbursement in the event a vital executive passes away
Use Cases	Protect directors and officers from claims of wrongful acts Reimburse legal defense costs for directors and officers Cover costs of settlements and judgments Cover costs associated with securities claims and shareholder derivative lawsuits Cover costs associated with employment practices lawsuits Provide crisis management services in the event of a privacy breach or cyber attack to help minimize reputational damage

Category

List

Benefits

Protect directors and officers from lawsuits and legal defense costs
Covers claims arising from wrongful acts committed while acting as a director or officer
Protects personal assets of directors and officers from being depleted by lawsuits
Covers costly breach response expenses like credit monitoring, forensic investigations, legal support in the event of a data breach
Covers claims arising from errors and omissions committed while providing professional services to customers
Provides keyperson replacement reimbursement in the event a vital executive passes away

Use Cases

Protect directors and officers from claims of wrongful acts
Reimburse legal defense costs for directors and officers
Cover costs of settlements and judgments
Cover costs associated with securities claims and shareholder derivative lawsuits
Cover costs associated with employment practices lawsuits
Provide crisis management services in the event of a privacy breach or cyber attack to help minimize reputational damage

Based on analysis of insurance rates for similar sized businesses providing computing infrastructure, data processing, web hosting and related services, the estimated average annual premium for Directors And Officers Insurance would be around $5,000 – $10,000. Pricing is usually determined based on factors like annual revenues, number of employees/directors, claims history and risk level of operations.

Estimated Pricing: $5,000 – $10,000

Conclusion

In summary, cyber liability insurance, general liability insurance, property insurance, business interruption insurance, and directors and officers insurance provide layered protection tailored to the needs of companies in the computing infrastructure, data processing and web hosting industries. Maintaining adequate insurance coverage helps protect technology businesses against costly risks and allows them to focus on serving customers.

Frequently Asked Questions

what types of business insurance are most important for companies in the computing infrastructure, data processing and web hosting industries?

some of the most important types of business insurance for companies in these industries include cyber liability insurance, general liability insurance, property insurance, business interruption insurance, and directors and officers insurance.

why is cyber liability insurance important for these types of companies?

cyber liability insurance is important because companies in these industries often store and process large amounts of sensitive customer data. it protects against costs resulting from data breaches, cyber attacks, security failures and other technology-related incidents.

what does general liability insurance cover for companies in these industries?

general liability insurance covers risks outside of just technology failures, such as property damage, injuries to visitors at facilities, data breaches, errors and omissions, and other liability exposures.

why is property insurance needed?

property insurance is important because these companies rely heavily on computer equipment, servers, networking hardware and data storage devices which are at risk of damage or loss. it provides financial protection for these valuable physical assets.

what does business interruption insurance cover?

business interruption insurance provides funding to continue operations if facilities are disrupted by covering lost income, extra expenses and helping to quickly get the business back up and running after an unplanned outage or disaster.

what types of legal claims does directors and officers insurance cover?

directors and officers insurance protects executives and board members from expensive lawsuits, reimburses their legal defense costs, and covers settlements and judgments against them arising from wrongful acts, errors and omissions, privacy breaches, cyber attacks and other issues.

Top Business Insurances for Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (NAICS Code: 518210)

Key Takeaways

Introduction

Cyber Liability Insurance

General Liability Insurance

Property Insurance

Business Interruption Insurance

Directors And Officers Insurance

Conclusion

Frequently Asked Questions

Resources

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