Despite your very best efforts to understand and mitigate all of your exposures to loss, your organization could still be sued. Technology companies face a variety of exposures, and lawsuits against these companies are sometimes frequent and complex. The size of settlements is also on the rise.
TechAssure members often get asked the question, “how much umbrella limits should we carry?” There is not a single, standard answer. Because the answer differs for each client, you may consider the following factors when selecting a liability limit that is right for your firm.
- Your stage of growth
- Outlook for growth in the next 12 months
- Asset size of your organization
- Profile of the business and board members
- Merger and Acquisition activity
- Type of technology firm
- Type of products and services your organization provides
- Contractual requirements and obligations
Your TechAssure member can help you through the procedure by providing benchmarking information that can help your firm make an informed decision.