Information technology

All round protection for IT companies

The SCHUNCK Information Technology Competence Centre has ever since its establishment in 1998 consistently dedicated itself to the IT sector. Having now become the largest independent specialist broker for Mittelstand companies and major corporations in the IT sector, we now combine the best insurance solutions and target them at the specific needs of the sector.

In times of Big Data und Industry 4.0 the role and importance of information technology (IT) has changed dramatically. Now IT is a permanent and indispensable component in the value chain, be it as a basis for intact supply chain management, for control of complex industrial systems or digitalisation of all business processes.

Thanks to this development and the increasing degree of complexity of IT processes, the requirements on the IT sector, already very steep, continue to grow further, which simultaneously means a similar increase in the potential liability claim scenarios and risk situations as a result.

What do typical risk situations in the IT sector look like?

The main IT sector risks relate to financial damages and consequential financial damages that, besides the „classic“ statutory regulations (sections 823 ff of the Civil, Code), are frequently founded in liability under signed contracts. In particular in IT project business, the challenges are extremely diverse.

Critical factors as an obstruction to successful project completion:

  • Inadequate or unclear understandings with the client in connection with an uncertain contract situation
  • A lack of the client’s own resources
  • The absence of detailed knowledge on the part of the client about procedures in IT

Particularly in regard to the very dynamic environment in which the IT sector operates, any contemporary IT insurance policy should be just as dynamic and flexible. Should the damage compensation claim suddenly „drop in the mailbox, “ then the search often starts for the precise moment when the insured event actually occurred. Was it the moment when something was breached (the breach principle) or the moment when the damage actually occurred with the claimant (the damage event principle)?

From D&O insurance which has become established for decades now, we already know the transparent solution for the problem of the „claims made“ principle, according to which the time when the claim is raised is definitive.

With all of the above cited challenges we start with our own system of terms now established on the insurance market as a benchmark, and known as SCHUNCK NetRisk.

What protection does SCHUNCK NetRisk provide?

Decades-long experiences of servicing many clients went into its development, as did the ongoing exchange with professional IT sector consultants as well.

The IT Competence Centre has, for the recently released relaunch of SCHUNCK NetRisk, once again compared the best offers of various insurance providers on the market and batched them together in a completely new set of business terms.

SCHUNCK NetRisk, with its standard wording, offers with all modules all round protection, which can be modelled on the individual needs of your company. Each module functions as a stand-alone contract.

Your advantage: Transparent, flexible insurance cover and the exclusion of coverage gaps.

The liability insurance module

This contract module contains insurance cover for all professionally typical corporate risks of an IT company. The coverage scope SCHUNCK NetRisk in this module clearly exceeds other conventional market products. Here are several highlights as examples:

  • A new and unique claim case definition according to the „claims made“ principle for the IT business liability segment
  • Open-ended financial damages coverage
    • No exhaustive listing of operational fields
    • Digital trends are automatically recorded without separate notification
  • Contractual liability claims are included in the insurance
  • No-fault liability (e.g., if different from service level agreements)
  • Full inclusion in the insurance of flat-rate damage compensation
  • Cyber liability insurance in the framework of the scope of coverage
The property damage module

Alongside the far-reaching hedging of potential liability risks there, all-inclusive protection of significant fixed assets as well as loss of income risks are of decisive importance.

Whether buildings, items added by the tenant, core assets (business fixtures, goods or inventories) or just the classic loss of income with extra costs, SCHUNCK NetRisk also in this case offers insurance cover lying far above the market average. Here are some highlights as examples:

  • Genuine all-risks cover across all company divisions, domestic and international
  • Flat-rate insurance of all permanent establishments in Germany, without identification of the risk venues
  • The under-insurance issue is obviated throughout due to the establishment of compensation limits
The technical insurance module

In particular in the IT sector with its very high degree of technology deployment, the protection of electro-technical or electronic systems and hardware is important.

As a matter of course, damages due to loss of income and extra costs are a permanent component of this module, additionally with the option of insuring data (for example software licences). Analogously to the property damage module SCHUNCK NetRisk in this case as well offers the same advantages:

  • Genuine all-risks cover for all company divisions, domestic and international
  • Flat-rate insurance of all permanent establishments in Germany, without identification of the risk venues
  • The under-insurance issue is obviated throughout by the establishment of damage compensation limits

SCHUNCK NetRisk as an international insurance solution

As an international insurance broker, the SCHUNCK GROUP accompanies its clients throughout the world. The SCHUNCK NetRisk cover strategies takes recourse to favourable terms and conditions in all EU States. In addition, the SCHUNCK GROUP offers its clients extensive worldwide solutions for its international insurance programmes meeting the requirements of tax licensing as well as meeting compliance requirements.

Your contact

Robert Drexler

+ 49 (0) 89 38177-459

our experts will be happy to advise you – independently and competently.