The technology and life sciences industries are growing rapidly. For those within these two industries on the rise, insurance purchasing decisions are often made without the necessary information to make the most optimal decisions.
Recently, Assurex Global completed its first Technology and Life Sciences Benchmarking Report. This report takes a deep dive into Assurex Global’s 49 North American and 56 international Partners’ client bases. Collecting information on the purchasing decisions of more than 510 individual clients, this report provides necessary insight that organizations need to make better decisions by studying the buying habits of their peers.
Below, you will find some key insights from some of the coverage areas surveyed in the report.
The survey shows that 41% of firms in the study purchase general liability limits greater than the typical standard of $1 million per occurance/$2 million annual aggregate limit. However, some firms may be reporting the combined limit of their general liability and excess liability policies. Some of these purchasing decisions may be a result of excess liability underwriters requiring higher underlying limits to support their offers of excess liability coverage.
While the firms involved in the survey purchase excess liability insurance, the limits seem relatively modest. The survey found that 29% of firms purchase $2 million or less of excess liability coverage, and 71% purchase $5 million or less. Only 8% of the firms in the survey purchase excess liability limits greater than $10 million.
Errors and Omissions (E&O)
Technology errors and omissions (E&O) insurance is professional liability insurance modified to meet the needs of the technology market segment. It is designed to cover the financial loss of a third party arising from an act, error, or omission committed by the insured in the course of the performance of services or failure of the insured’s product to perform as intended or expected.
Thirty-eight percent of the firms surveyed report purchasing Tech E&O coverage. Of those companies that purchase the coverage, 23% purchase a limit of $1 million. Seventy-four percent of firms purchasing coverage only purchase limits of $5 million or less. Only 26% purchase limits greater than $5 million.
Forty-five firms, slightly less than 9% of the firms included in the entire survey, report carrying management liability coverage. More than half of those firms carry limits of just $1 million. Just 22% of these firms report carrying management liability limits of $5 million or greater.
Directors and Officers (D&O)
While D&O coverage can be included in a management liability policy, this portion of the survey covers businesses reporting monoline D&O liability coverage.
Roughly 42% of the firms surveyed report purchasing monoline D&O liability coverage to protect their management team and the entity itself. When combined with the management liability coverage reported in the previous section, more than half of the firms in our survey purchase insurance to protect their board members and officers.
Cyber Liability Coverage
As ransomware and other cybercrimes continue to dominate news cycles, perhaps one of the most surprising statistics from the survey was that only 42% of firms included in the study purchased cyber liability coverage.
Request a Copy of the Full Report Today
Talk to an RCM&D advisor today to request a copy of the Assurex Global Technology and Life Sciences Benchmarking Report. We are available to talk about any critical statistics from the report, answer any questions, and help you tailor optimal coverages to protect your technology or life science business.