But naturally, for each of these positive terms, there’s an equally concerning challenge that may get in the way of advancement.
So, what are the “big three” possible stumbling blocks that may hinder technological progress? We’ve identified these as access to funding, skills and talent shortfalls, and steering a course through the turbulent waters of government legislation, regulation, and aid. Managing to overcome these obstacles is paramount if tech businesses are determined to survive and thrive. And engaging the services of a specialist insurance broker who can address and provide policy solutions for all of these issues may be your best “coach” when attempting to medal in the tech sector race.
Access to funding
Running the gamut from start-ups to established enterprises, getting a secure line of money and investment is a key concern for tech. In the days of more traditional enterprise, it was often a case of shaking hands with the bank manager and signing off on a loan. But tech is often viewed as risky, so traditional funding schemes may not be an option. That’s why innovators approach angel investors, look to venture capital arrangements, or use their powers of sass and savvy for crowdfunding. All of these may bring in the bucks but are reliant on market trends and what competitors have got there first.
That’s where an insurance broker with tech insight can prove their worth, offering up insurance programmes and solutions that are defend the business from possible losses, while also increasing the confidence of any potential investor. We can use liability insurance as a way of highlighting this; it provides protection from the fallout of product issues or intellectual property disagreement, so investors will be encouraged that the tech enterprise has performed due diligence, and more likely to back up the business with funding.
Insurance brokers with a focus on tech offer more than just risk management. They provide tailored insurance solutions that protect against potential losses and increase investor confidence. For instance, liability insurance can safeguard against intellectual property disputes and product liability, making your business a safer bet for investors.
Skills and talent shortfalls
The second challenge facing the tech industry is a major lack of professionals skilled in the necessary areas. Things move so fast across the technology sector that it’s almost impossible for people to keep up. And sometimes there may only be a handful of innovation specialists who can almost name their price, making retention and recruitment a real, ongoing issue – which is where that gap becomes wider and harder to cross.
Yet again a specialist insurance broker in the tech field can give strategic insight and solutions on how to bridge or fill that talent gap. One answer would be implementing a more fulfilling and attractive employee benefit package that makes the tech enterprise the place talent wants to join and contribute to, rather than the place they move on from. This people-first approach also means that there is a robust plan in place when and if key employees do leave, so the relevant team and wider business can keep moving forward.
Government legislation, regulation, and aid
The final element to this three-pronged approach is how tech companies traverse the multiple government regulations and laws that may limit or alter how they operate. Across the tech sector, there are, as there should be, tight rules around data protection, cyber-security, and consumer rights. Avoiding or breaking these are viewed as failure to comply, which is likely to result in a big fine on top of damage to the business’ reputation. Two things which may be impossible to recoup.
Your best bet in navigating governmental change is aligning with an insurance broker who possesses the knowledge and background of supporting tech enterprises. They not only know all there is on compliance but follow all the regulatory changes that come up and can advise on the most suitable risk management programme. And in addition, it you partner with a true expert, they’ll understand which government support you should lean into, and what incentives and resources are readily available.
It’s worth mentioning the unstoppable pace of AI which brings a host of new risks. Regulators are already struggling to ensure guidance is keeping up with the impact and development of AI – which is being felt even more profoundly in the tech sector than many other industries. This is yet another reason why you are advised to work with an insurance broker that understands AI along with the other key factors.
This article comes courtesy of Howden – an expert insurance group that does insurance differently – offering flexible, high-quality cover, and reassuringly straightforward service, while using insurance as a tool to increase resilience. United by a no-limits mindset, Howden is a powerful and passionate team, rising to any challenge to do right by your business.
