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Off-the-shelf business income policies can sink tech companies.

Article Excerpt
CHANGE COMES EVER MORE quickly in today's markets, and companies that don't keep pace may not survive. Nowhere is the pace of change more rapid than in technology-especially the life sciences and information and networking technology industries--where new advancements have led to extraordinary growth for many companies.

Growth, however, creates special challenges for corporate insurance buyers when it comes to business income coverage. A standard, one-size-fits-all policy may not adequately protect technology companies that are growing rapidly, investing heavily in research and development, or competing in ever-changing markets. While such companies often bet their future on their latest products, inadequate business income insurance is a gamble they don't have to take.

Although technology companies may share some characteristics such as rapid growth and change, their businesses can differ greatly. Those differences mean that business income insurance needs can vary widely from software developers to integrated circuit designers, medical device manufacturers or biotechnology companies. For example, a software developer may be able to fully recover from a loss within weeks, while a pharmaceutical company might take years to restore operations and still never recover their market position. This shows why it is crucial to tailor a business income policy to...