Insurance for IT: what you need as a software developer

by Meike Müller
Tipps & Tricks

Do you work in the IT sector or are you planning to further your education in the technology and software sector in order to get a job in the industry later on? Or maybe you're a freelancer? Then you need the right insurance for your work and your everyday life. Because just like in any other job, there are always risks that can present you with major challenges in an emergency. With the right insurance at your side, you can take precautions and have the best possible protection. In this article, we would like to show you which IT insurance policies will make your life easier and enable you to work in the IT sector without any worries. Find out whether you are already optimally covered or whether there is still room for improvement!

Reading time 15 min

What to expect in this article:
  1. First, you'll get all the information on why insurance is important in general
  2. We give you an overview of the most important IT insurances and why you need them
    1. This includes occupational disability insurance
    2. Health insurance, of course, too
    3. Legal protection insurance
    4. Retirement cover, of course
    5. Content insurance
    6. Liability insurance for IT professionals, which is further subdivided into various categories such as
      1. Professional liability insurance
      2. Public liability insurance
      3. Financial loss liability insurance
      4. Personal liability insurance
    7. Cyber insurance
  3. Finally, we draw a conclusion and give you a recommendation on how to find the right insurance policies that are individually tailored to you
  4. Last but not least, we answer further questions and answers about IT insurance in the FAQ section
    1. What is business interruption insurance?
    2. What is consequential financial loss?
    3. What is damage caused by delay?
    4. Do you need electronics insurance? And what are the advantages and disadvantages?
    5. Which insurance helps in the event of burglary at the workplace?

Why is insurance important in general?

Before we start with the most important IT insurances, we would like to briefly explain why insurance should be taken out in the first place and why it makes your life much easier, even if you may not have to use it in the event of a claim. This is because insurance usually comes into play when you would face major financial problems without it, which could also threaten your existence.

For these reasons, it is worth taking out insurance as an IT professional:

  1. Security: A big advantage of having the right insurance is that it gives you security and, to a certain extent, peace of mind. Because you know that if something should happen, you are insured and will receive the appropriate support. You are not left alone with the costs that arise. The insurance company will help you financially.
  2. Minimizing risk : Of course, the first point also means that with every insurance policy you take out, you minimize the risk of an unforeseen event taking you out of your life financially.
  3. Asset protection: The first two points go hand in hand with the advantage of protecting your assets. Whether it's money you've saved, shares or a property, car or other items, you also protect these with insurance. In the event of an emergency without insurance, you may always have to use it to get yourself out of trouble. Alternatively, you can of course also use insurance to directly protect items from damage or loss through insurance or get them replaced by their financial value.
  4. Business protection: If you work as a self-employed IT professional or entrepreneur, then some insurance policies are also important to protect your business activities. The keywords are liability risks, business interruption, loss of property and other business risks.
  5. Long-term goals: Some insurance policies are also safeguards for the future. They offer the opportunity to invest or save for the long term. This will benefit you later on.

An overview of the most important IT insurances and why you need them

Now we come straight to the most important insurances that you should take out as an IT professional. Above all, they protect you against financial challenges and allow you to go about your day-to-day work without worry. We have picked out the most important insurances for you here and explain below why they are beneficial for you and in which cases they are effective. At the bottom you will find our recommendations as to whether the insurance policies are a must, whether we highly recommend them, whether they are optional or whether they are only relevant for companies or the self-employed.

Occupational disability insurance (BU)

Occupational disability insurance is one of the most important types of insurance for employees, small businesses, entrepreneurs and in fact anyone who works and has not made financial provisions to ensure that they can finance their standard of living to the end even without an income. Here is an overview of the most important information:

What does BU cover?

With occupational disability insurance, you can insure yourself financially against occupational disability. When exactly you are deemed to be unable to work also depends a little on how the insurance company with which you are insured defines occupational disability. As a rule, however, occupational disability is assumed when a person is no longer able to carry out their previous profession on a permanent basis for health reasons.

Who is the insurance suitable for?

Occupational disability insurance is suitable for anyone who is in gainful employment and depends on a regular income. In particular, people without sufficient financial reserves, people with families, the self-employed, freelancers and people who work in a profession with a higher risk should take out occupational disability insurance.

What is the approximate cost of BU?

The cost of occupational disability insurance can vary greatly, as it depends on many factors such as your age when you take out the policy, your profession, your state of health, the desired pension amount and the term of the policy. It is difficult to give exact figures. This is because the calculation is very individual. You may only pay 20 euros a month, but 100 euros or more is also possible.

What do I need to consider when taking out insurance?

When taking out your occupational disability insurance, you must always pay attention to the point in time at which the insurance policy assesses you as incapacitated for work. Some policies classify anyone who can no longer carry out their last occupation as being unable to work. Other policies define occupational disability more broadly and may refuse to pay benefits if you are still able to work in another profession.

You should also look out for a subsequent insurance guarantee. You can benefit from this! If you want to increase your insurance benefit because you have more financial resources, for example, there will be no new health check if your policy includes a subsequent insurance guarantee.

Also note whether there is a waiting period, i.e. a period without benefits being paid. This does not necessarily have to be a bad thing if, for example, it is only a few years and you are still young and physically fit. The probability is very low that you will need your BU soon. Depending on the situation, however, this may be a reason not to take out a policy.

Incidentally, you must answer the health questions very precisely and honestly. If you conceal relevant health information, this can lead to your insurance company not paying out in the event of occupational disability. In addition, some policies offer a premium dynamic, where the premium and benefit are adjusted annually to take account of inflation. This is a great advantage for your occupational disability pension, should you ever need it.


Health insurance

In Germany, it is a legal requirement that every German resident has health insurance. This is independent of age, state of health and nationality. If you are an employee, you have the advantage that your employer pays part of your statutory health insurance. In addition, the health insurance contribution is already deducted before your salary is paid, so you don't actually notice that you are paying for it. The situation is different with private health insurance (PKV). You can only take out private health insurance from a certain income or if you are self-employed. The premiums for private health insurance depend on individual factors such as age, state of health and desired scope of benefits.

What does statutory health insurance cover?

Statutory health insurance covers standard benefits that are mandatory for all insured persons. These include medically necessary care, including medical treatment, hospital stays, medication and certain preventive check-ups.

And what does private health insurance cover?

With private health insurance, the scope of benefits can be determined individually. For example, you can also receive benefits such as treatment by a chief physician, a single room in hospital, alternative treatment methods or comprehensive dental treatment.

Who is the insurance suitable for?

Everyone needs health insurance. Private health insurance is only suitable for high-earning employees with an annual gross income of €64,350 (as of 2021), the self-employed and freelancers as well as civil servants and family members of privately insured persons.

What does health insurance cost approximately?

The cost of statutory health insurance varies depending on your individual situation and income. This is because contributions are calculated as a percentage of 14.6 (as of 2021) of gross income, with employees and employers each paying half of the contribution. However, there is also a contribution assessment ceiling. This is €58,050 gross per year. In addition, each health insurance company can charge an additional contribution of up to 1.3 percent (as of 2021). The cost of private health insurance also varies depending on various factors such as age, state of health, the chosen tariff and the benefits included. The monthly costs can therefore range from several hundred to a thousand euros.

What do I need to consider when taking out insurance?

You should consider the following aspects when taking out statutory health insurance:

  • The choice of health insurance provider: there is a large selection of statutory health insurers in Germany. Even if they all have to provide certain standard benefits, additional benefits may differ. It can therefore be worthwhile for you to compare the health insurance companies with one another.
  • Contribution level: The standard percentage rate is the same for every statutory health insurance company. However, the additional contributions vary from insurer to insurer. You should find out about this in advance.
  • Service and accessibility : Another point you should consider is how good the health insurers' services are. If you often need health support, good customer service could make your life easier.
  • Optional tariffs and supplementary insurance: Some insurers also offer you additional benefits if you take out supplementary insurance. If this is of interest to you, you can obtain information from the insurance companies.


Legal protection insurance

Whether legal expenses insurance is important for you depends largely on how you work. As a rule, you are also legally covered by your employer or the company is liable. But especially if you are a freelancer or entrepreneur in the IT sector, there are some situations in which legal expenses insurance can be very beneficial.

What does legal expenses insurance cover?

Legal expenses insurance is a type of insurance that covers the costs of legal disputes. This can include legal fees, court costs, expert witness fees and possibly the costs of the opposing lawyer if the policyholder loses the legal dispute.

Who is the insurance suitable for?

In the IT sector, various groups of people can benefit from legal expenses insurance. For freelance software developers and IT consultants in particular, legal expenses insurance is an important form of protection in the event of possible contractual disputes or unpaid invoices. Start-ups and companies in the IT sector should also find out about legal expenses insurance. From contractual issues to copyrights to potential employment law issues with employees - the appropriate insurance can help. Taking out legal protection insurance can also be beneficial for people who work as self-employed or freelance web designers and developers. But legal protection insurance can also be beneficial for employees in any sector. After all, conflicts can also arise in the private sphere that can only be resolved with the help of legal support.

What is the approximate cost of legal expenses insurance?

The cost of legal protection insurance varies depending on the type of legal protection insurance chosen and its scope. Some policies offer comprehensive cover for a wide range of legal matters, while others offer more specific or limited cover. Other policies also require you to pay an excess. You then have to pay a certain amount yourself if an insured event occurs.

What do I need to consider when taking out insurance?

If you want to take out legal protection insurance, you should consider a few points before you sign the insurance policy. These include the sum insured, the waiting period, the excess, any exclusions, notice periods and whether there is a free choice of lawyer.


Retirement cover

It never hurts to take out private insurance for your retirement. But self-employed people in the IT sector in particular need to take care of their pension provision because they are not automatically subject to the same social protection systems as salaried employees. There is no statutory pension insurance obligation for the self-employed and there is also no company pension scheme. However, even as an employee in the IT sector, you should make sure you have additional security for your old age, as your pension will probably not be at the same level as your previous income. This means you won't be able to maintain your current standard of living if you don't make the right provisions.

What does a pension provide?

With the right pension provision, you can ensure your well-being in retirement. During this time, you will no longer be gainfully employed, or only to a limited extent. For this reason, you will need another "income" to cover your standard of living or at least your basic needs financially. Retirement provision is therefore your income replacement.

Who is retirement provision suitable for?

As a self-employed person in the IT sector, you have to take care of your own pension provision. This is not optional, but mandatory. After all, if you no longer want to work in the future, you will need a pension plan to replace your income. Employees should also make an effort to make private pension provision. Relying solely on the statutory pension can be risky, as it may not be enough to maintain the standard of living you want or need in old age.

What is the approximate cost of a pension?

It is difficult to say how much a pension will cost you each month. The amount of the costs depends entirely on how high your desired income should be in retirement, what financial resources are available to you, what your current starting position is and what type of pension you decide on. You also need to bear in mind that some pension plans involve a fee and how long you want to "save" for your pension.

What do I need to consider when taking out a policy?

It makes sense to calculate in advance how much you will need each month in retirement. In doing so, you should consider your current life situation and also plan how high other expenses could be in the future, such as costs for travel, hobbies or healthcare. It is also advisable to start early. The earlier you start saving for retirement, the more you can benefit from the compound interest effect and the lower the monthly or annual contributions required. You should also invest your money in more than just one pension product or asset class in order to spread risks and optimize potential returns. Find out about fees, check providers and see how flexible adjustments are possible.


Contents insurance

Contents insurance is suitable for protecting all items that are located in a house or apartment and are not permanently attached to the building. Contents insurance protects against various risks such as fire, burglary, storms and vandalism. Contents insurance may be an option if you own expensive items such as a computer, server and more.

What does contents insurance cover?

Contents insurance (often referred to as household contents insurance) protects the contents of a house or apartment against various risks. Fire is one risk, including damage caused by fire, lightning or explosion. Contents insurance can also take effect in the event of burglary . It then protects against damage or loss caused by burglary or robbery. It also often covers damage caused by water leaking from pipes or equipment, storms or hailstorms as well as the destruction of or damage to property caused by vandalism.

IT professionals often have expensive equipment such as computers, servers, monitors and peripherals. These can be protected by contents insurance. While physical copies of software or data storage media may be covered by the insurance, it is important to clarify whether and to what extent licenses or electronic versions of software are also protected. Content insurance may cover the physical location of data (e.g. hard disks or external drives), but not necessarily the data content itself. Additional services or insurance may be required to recover data.

If you work from home, it's important to clarify the extent to which business equipment and data in the home office is protected by contents insurance. Some contents insurance policies also offer business interruption cover. This means that if an insured loss temporarily stops the business, the insurance may pay for lost profits and additional costs.

Who is the insurance suitable for?

Contents insurance is suitable for a wide range of people and situations. In general, it can be useful for anyone who owns valuables or personal possessions that they want to protect from loss or damage. Every household, renter, homeowner, freelancer or self-employed person has a certain amount of valuables, be it furniture, electronics, clothing, jewelry or art. Insurance offers protection against unexpected losses due to fire, theft or other damaging events.

Everyone should assess for themselves whether the individual items have a particular financial value that needs to be protected. Your own needs and circumstances must also be considered.

While contents insurance can be beneficial for many people, each individual should assess their individual needs and circumstances. It is important to read the policy terms and conditions carefully, assess the level of cover correctly and ensure that the policy you choose provides the protection you require.

What is the approximate cost of contents insurance?

The cost of contents insurance is variable. For example, they also depend on the region. In cities or regions with higher burglary rates, the costs can also be higher. The total cost also depends on the total value of the household contents. Additional protection options, such as protection against natural disasters, glass breakage or bicycle theft, can also increase the costs. A higher deductible can reduce the premium, but also means that you pay more out of your own pocket in the event of a claim.

What do I need to consider when taking out insurance?

If you decide to take out contents insurance, the first step is to estimate the total value of your household contents in order to determine the amount of cover you should take out. You should also check which risks are covered. Sometimes additional perils such as flooding, earthquakes or snow pressure can be covered. Some tariffs also offer a reduced premium if you are prepared to pay a certain amount yourself in the event of a claim. It is also advisable to review and adjust your insurance cover regularly (e.g. annually), especially if your circumstances or the value of your household contents change.


Liability insurance for IT professionals

Liability insurance protects you against financial claims from third parties caused by unintentional damage for which you end up being held liable. Liability insurance for IT professionals is specifically about financial claims that arise due to errors or omissions at work.

What does liability insurance cover?

The IT sector harbors specific risks that are often not covered by standard liability insurance. This is why liability insurance specifically for the IT sector can provide security in everyday working life. Risks and areas that are usually covered include professional errors such as a programming error that leads to downtime and data loss, a breach of contractual obligations, a breach of data protection, a breach of intellectual property rights and copyrights, operational and production downtime, delays and much more. Exactly what IT liability covers varies from policy to policy.

Who is the insurance suitable for?

IT liability insurance is suitable for many professional groups in the IT sector. IT liability is particularly useful for software developers, IT consultants, network technicians, administrators, system integrators, web designers, web developers, database administrators, IT service and support technicians and cloud service providers.

It is important to emphasize that although many IT professionals believe that they do not need their own liability insurance because they work under the umbrella of a larger company, the risk of personal liability still exists. An individual policy can also provide additional protection in such situations.

What is the approximate cost of liability insurance for IT professionals?

Liability insurance for IT professionals does not necessarily have to be expensive. The costs depend on the size of the company or whether the person is a sole trader or not. It also depends on the type of activity, the turnover and the amount of cover selected. Other factors include the amount of the deductible and additional cover options such as financial loss liability and cyber insurance.

What do I need to consider when taking out insurance?

There are a few aspects you should be aware of before taking out insurance. For example, the sum insured you choose should be high enough to cover potential claims. Think about how high the sums could be in the event of a claim. You should also consider how far the insurance cover extends. Does the cover only apply in Germany or throughout Europe? You should also study the details in the policy, as there may be a few exclusions that are not covered as standard and a deductible that applies in the event of a claim.


Professional liability insurance

Liability insurance for IT professionals is also professional indemnity insurance. However, professional liability is the umbrella term for all insurance policies that cover professional risks. It ensures that insured persons are protected against claims against third parties. However, the exact scope and specific conditions can vary depending on the profession and insurance policy. For example, there is professional indemnity insurance for architects, tax consultants, journalists, experts, real estate agents, doctors and more.


Public liability insurance

In addition to professional liability insurance, another form of liability insurance is public liability insurance. Public liability insurance is aimed at companies and protects them against third-party claims arising from personal injury, property damage or financial loss.

What does public liability insurance cover?

With public liability insurance, you can insure your company against all losses incurred by a person. For example, if a customer is injured in the business premises during a meeting. In addition, public liability insurance also covers property damage caused to third parties. This can be the case, for example, if an employee damages something at a customer's premises. In addition, financial losses are also covered, which can occur at your IT company due to incorrect advice or a system failure, for example.

Who is the insurance suitable for?

As already discussed, software developers, IT consultants and system administrators who work in an IT company are exposed to potential liability risks, which can range from data loss to incorrect advice. So if you have an IT company, you should definitely take out business liability insurance.

What does public liability insurance cost approximately?

The cost of business liability insurance depends on a number of factors such as

  • Industry and profession: some professions and industries have a higher risk profile than others. For example, a builder is likely to pay more for insurance than a graphic designer because the potential risks of damage are higher in the construction industry.
  • Company size and turnover: A larger company with more employees and higher turnover will generally have higher premiums than a small sole trader.
  • Excess: As with other insurance policies, the level of excess can affect the premium. A higher deductible usually leads to lower premiums.
  • Sum insured: The maximum amount that the insurance company will pay out in the event of a claim also influences the premium. Higher insurance cover usually leads to higher costs.
  • Contractual details and additional cover: Special agreements, additional insurance or specific extensions of cover can influence the price.
  • Previous claims: Companies that have had many claims in the past may experience higher premiums.
  • Location of the company : Sometimes regional factors or the exact location of the company can influence costs.

What to consider when taking out insurance?

It is important that you thoroughly research your insurance cover before taking out public liability insurance. Compare different offers, pay attention to the sum insured and any exclusions. You should also look at extensions and possible supplementary insurance as well as the term and notice periods.


Financial loss liability insurance

What does financial loss liability insurance cover?

As with all types of insurance, the exact scope of pecuniary loss liability insurance depends on the insurance company and the individual insurance policy. As a rule, it covers financial losses caused by incorrect advice, failure to meet deadlines, faulty services, breaches of contract and the loss of data or documents. In addition to the actual settlement of claims, financial loss liability insurance often also covers the examination of claims for damages and, if necessary, the costs of legal defense against unjustified claims.

Who is the insurance suitable for?

Financial loss liability insurance is particularly important for freelance professions such as tax consultants, lawyers, notaries, auditors, management consultants and IT service providers, as they are often exposed to an increased risk of financial losses in the course of their professional activities.

What is the approximate cost of pecuniary loss liability insurance?

The cost of pecuniary loss liability insurance depends on various factors. For example, the exact professional activity is decisive, as well as the amount of cover and the excess. Other aspects that make a difference to the premium amount are the turnover, the size of the company and whether there have been any previous claims.

What do I need to consider when taking out insurance?

When taking out insurance, think carefully about what cover you need and the level of cover. You should also read through the terms and conditions of the contract in detail to identify any exclusions or restrictions. Some policies include an excess in the event of a claim. This can reduce the premium, but also means that you have to bear some of the costs yourself in the event of a claim. Retroactive cover can be particularly important for professions where the consequences of an error only become apparent years later. It protects you against claims for activities that you carried out before the contract began. Conversely, you should also pay attention to how long the insurance will continue to cover claims arising from past activities after the contract ends.


Personal liability insurance

An IT professional, like any other person, should have personal liability insurance, as this protects against the financial consequences of damage unintentionally caused to third parties in the private sphere. The choice of profession does not actually play a decisive role here. However, personal liability insurance is definitely one of the most important types of insurance that IT professionals should have.

What does personal liability insurance cover?

If you or a co-insured person has caused unintentional damage in your private environment. This typically includes, for example, personal injury, property damage and sometimes also financial loss. Personal injury involves injuries or impairments to a person that are caused by your fault or the fault of a co-insured person and are therefore protected. Costs incurred in defending against unjustified claims and damage to rented property, i.e. damage to rented residential premises, are also often covered.

Who is the insurance suitable for?

In principle, everyone should have personal liability insurance, because accidental damage can always occur. From individual adults to families with children. But households with animals, athletes, people who travel frequently and senior citizens should also take out personal liability insurance.

What is the approximate cost of personal liability insurance for policyholders?

Personal liability insurance can start with annual premiums of around 40 to 70 euros. Of course, the costs are very individual and vary depending on which provider you choose, the amount of cover and excess, additional benefits, etc. If you choose a family plan, this will also be slightly more expensive.

What do I need to consider when taking out insurance?

You should consider the following aspects when taking out personal liability insurance:

  • The amount of the excess
  • The desired sum insured
  • The scope of benefits
  • Term and notice periods
  • Discounts and special conditions
  • The possibility of making adjustments and extensions at a later date


Cyber insurance

Cyber insurance is insurance that protects companies or individuals against financial losses that may result from cyber events such as data breaches, cyber attacks, malware, ransomware and other internet-related risks. This insurance can also cover loss or damage to electronic data, extortion and business interruption due to cyber events.

What exactly does cyber insurance cover?

Cyber insurance aims to protect against all risks associated with the use of information technology. Exactly what cyber insurance covers depends on the provider and the insurance policy in question. It often includes cover for the costs of the loss or theft of sensitive data, the costs of restoring data and systems after a cyber attack and the costs incurred if operations have to be interrupted as a result of the attack. Legal costs or contractual penalties may also be incurred. These are also included in some cyber insurance policies.

Who is the insurance suitable for?

Cyber risks are cross-sectoral. That's why cyber insurance is also suitable for a wide range of professional groups. From online retailers and healthcare providers to, of course, IT service providers and consultants. After all, a lot of data is handled in the information technology sector. A cyber attack can result in high costs. However, cyber insurance is not necessary for permanent employees. However, companies and self-employed people in the IT sector should take out cyber insurance.

What is the approximate cost of cyber insurance?

The cost of cyber insurance often starts at just a few euros per month.

However, the exact cost of cyber insurance always depends on several factors. An entrepreneur who processes sensitive data such as financial or health information could pay higher premiums than a person who does not handle such data. The size and annual turnover of the company are also factors in the level of costs. A lower deductible can result in higher premiums for some insurers, as can previous security incidents.

What do I need to consider when taking out cyber insurance?

If you take out cyber insurance as an IT consultant, there are a few specific points you should bear in mind:

  • Check the scope of cover: Make sure the policy covers the specific risks you face as an IT consultant, such as claims for negligent advice, faulty implementation of security systems or data loss at a client's premises.
  • Professional indemnity insurance: Ideally, you should combine cyber insurance with professional indemnity insurance that covers damage caused by professional negligence.
  • Note the retroactive date: Some policies offer cover for incidents that occurred before you took out the insurance but are only discovered later. This can be important for you, as IT problems sometimes only become apparent after a while.
  • Contract review: If you have contractual obligations to your customers, make sure your insurance policy reflects these obligations.
  • Excess: Consider the amount you could and would be willing to pay yourself in the event of a claim. A higher excess can reduce the premium, but you should be sure that you can afford the amount if needed.
  • Third-party cover: If you rely on third-party providers for your services, your policy should also cover incidents caused by these third-party providers.
  • Extensions and exclusions: Read the fine print and look for exclusions or limitations that may be relevant to your work.
  • Training and compliance: Some insurers may offer reduced premiums if you attend regular training or have certain certifications.
  • Worldwide cover: If you work internationally or have clients abroad, you may need a policy that offers worldwide cover.
  • Renewal and adaptation : The IT and cybersecurity world is constantly evolving. Review and update your insurance regularly.


Our conclusion on your IT insurance

Ultimately, it's up to you to decide which insurance you want to take out and which insurance you can do without. Apart from health insurance, as an IT professional you are not obliged to take out any other insurance and pay a premium for it. Your own sense of security, financial reserves and perhaps also your family environment are factors that can decide what kind of insurance you take out in your life.

FAQ: Questions and answers about IT insurance

Finally, we'll take a look at a few questions that might also be of interest to you and have been asked about IT insurance and insurance cover. If you have any other questions that we have not yet answered here, the EXWE team is of course available by telephone or via the contact form. Just get in touch with us!

  • What is business interruption insurance?

    Business interruption insurance, also known as loss of earnings insurance or business interruption insurance, is a type of insurance that protects companies against financial losses caused by a temporary shutdown or interruption of business operations.

    This insurance typically covers the loss of profits, fixed costs and ongoing operating expenses that a business continues to incur during a business interruption. Examples of such situations can be

    In the event of a business interruption, business interruption insurance will reimburse the insured company for the financial losses incurred up to the agreed sum insured. This may include loss of profit, rental costs for replacement premises, employee salaries and other operating expenses.

    • Property damage: If a business is unable to use its premises due to a fire, explosion, water damage or other insured event.
    • Supplier interruption: When a company's major supplier or distributor has to shut down its own operations, interrupting the supply of raw materials, products or services.
    • Natural disasters: When a business has to temporarily close due to an earthquake, hurricane, storm or other natural disaster.
    • Technical failures: When a company is unable to continue its business processes due to an IT failure, hack, data breach or other technical problem.
  • What are consequential financial losses?

    Consequential financial loss refers to financial losses that result indirectly from another loss event. They occur when an incident or, for example, a programming error leads to an impairment of a third party's assets, for example through loss of earnings, loss of profit or business interruption. These losses threaten the financial well-being and stability of the affected party.

    In order to protect yourself against such consequential financial losses, financial loss liability insurance can be advantageous. This special insurance covers claims for damages resulting from financial losses that you cause to a third party. In the event of a justified claim, the insurance covers the costs of settling the claim up to the agreed sum insured.

    It is important to note that financial loss liability insurance often has an excess. This means that in the event of a claim, you will have to bear part of the costs yourself before the insurance will cover them. The amount of the excess is determined when the policy is taken out and can vary depending on the insurance company and the cover option selected.

    Financial loss liability insurance is particularly relevant for professional groups whose activities could cause considerable financial damage to third parties, such as lawyers, tax consultants, auditors or IT consultants. It offers important protection to safeguard your own assets and financial stability in the event of consequential financial losses.

  • What is damage caused by delay?

    Consequential loss refers to the financial loss and damage caused by delays or non-fulfilment of contractual obligations. These are consequential damages that may arise due to the delay or non-fulfillment of a contract. These damages may include additional costs, loss of profits, contractual penalties, damage to reputation or other indirect losses.

    While delay damages are not directly covered by a specific insurance policy, certain insurance policies may include "co-insured delay damages". This means that certain types of delay damages are included as part of an insurance policy's coverage. For example, business interruption insurance may cover certain delay damages, such as lost profits due to delivery delays. Transportation insurance can cover damage caused by delays or damage during transport.

  • Do you need electronics insurance? And what are the pros and cons?

    If you are an employee and are provided with work equipment by your employer, the responsibility for insuring this equipment usually lies with the employer. As a rule, companies have insurance policies that cover their property, including technical equipment and software. However, if an employee negligently or intentionally causes damage, the employer may be able to seek recourse. This depends on the specific situation and local laws and regulations.

    However, should you use your own devices for work - a practice known as Bring Your Own Device (BYOD) - the responsibility for insuring these devices usually lies with you. However, there may be companies that have insurance policies that also cover devices brought in by employees. Here it is important to check the company's specific policy and the details of your employment contract.

    In any case, it is advisable to talk to your employer or the HR department about the insurance terms and conditions to get clarity on responsibilities. Whether you need electronics insurance then depends on your specific circumstances

    Here are some advantages and disadvantages of electronics insurance:

    The benefits of electronics insurance:

    Protection against unforeseen costs: if your expensive electronics device is stolen or damaged, insurance can cover replacement or repair. This can help you avoid unexpectedly high costs.

    Extended warranty: Some electronics insurance policies offer extended warranties that go beyond the manufacturer's warranty. This means that you still have protection even after the manufacturer's warranty has expired.

    Worldwide protection: Some electronics insurance policies offer worldwide protection, which means your devices are also protected when you're traveling.

    The disadvantages of electronics insurance:

    Cost : Electronics insurance premiums can be high depending on the value of the devices and the coverage you choose. You need to decide if the cost of the insurance outweighs the potential savings from covering damage or theft.

    Deductible: Many insurance policies have a deductible that you must pay before the insurance kicks in. This can vary depending on the policy.

    Exclusions: Not all damage or circumstances are covered by electronics insurance. You need to check the terms and conditions of the insurance policy carefully to understand what is and isn't covered.

    As a general rule, you should consider your individual needs and circumstances before making a decision. It can also be helpful to speak to an insurance advisor to understand which options best suit your needs.

  • Which insurance helps in the event of burglary at work?

    Burglary at work usually falls under the company's business insurance or commercial buildings insurance. This type of insurance provides protection against losses from various events including theft.

    Specifically, contents or business insurance usually covers damage or loss to business inventory and equipment caused by burglary. This can include furniture, office machines, computers and other electronic equipment.

    Business buildings insurance, on the other hand, covers damage to the building itself caused by burglary, such as broken windows or damaged doors.

    While the insurance usually covers the replacement value or actual cash value of the stolen items, the specific terms and conditions may vary depending on the insurance provider and individual policy. It is therefore always advisable to check the exact terms of the insurance policy and speak to an insurance advisor if necessary.

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from 18.08.2023

Hello, my name is Meike. I take care of the EXWE back office and am responsible for our social media channels. All of our articles are meant to make your life easier and help you make decisions. Nevertheless, it can happen that something remains unclear, so: If you have questions about this article you can easily reach me at +49 231 93149827.

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