Business insurance coverage, and particularly Professional Liability insurance, is important in any business industry, but for those companies that provide IT services, it is critical. While General Liability insurance coverage addresses claims of bodily injury or property damage, Professional Liability insurance, also known as Errors and Omissions insurance, protects organizations against claims of professional negligence and errors or omissions in professional work. Specifically, Professional Liability insurance for techs will help protect against cases in which a client is rendered unable to operate their business as a result of loss of data, or software or system failures, as an example.

During the application process, however, nearly 25 percent of the companies that apply for General Liability and Professional Liability insurance for techs are declined. Sometimes this is due to high-risk behavior on the technology company's part, but often it's a result of not thoroughly understanding what is being asked and not properly answering the questions on the application. There are, however, several steps companies can take to help protect against an application decline. These steps also apply when submitting information for technology insurance quotes.

* Be Honest: Practice the utmost honesty when answering all questions on the business insurance coverage application. Be sure to disclose all pertinent information, as this automatically opens the door to claim denials should the company become involved in a lawsuit. Claim adjusters tend to review original applications and technology insurance quotes for misrepresentations. This includes any statements that, if answered truthfully, would be considered reason for the insurance provider to decline an application. Not only will the claim likely be denied, but the company also runs the risk of loosing the insurance carrier's legal defense and settlement payments.

* Provide a Thorough Description of your Business Operations: Be diligent in providing thorough descriptions of your business operations. Simply providing a short one- or two-answer sentence gives the appearance that the company is hiding something. Underwriters will becomes suspicious, which could either result in a refusal for further consideration of the application or significant questioning, which slows down the underwriting process tremendously.

* If the Information is on the Company Web site, It Needs to Be on Your Application: When insurance providers are considering a company for business insurance coverage, they make it standard practice to thoroughly review the company Web site. If the site contains any contradictory information, "red flags" are automatically raised. This could be as simple as a tech company, in an effort to appear more professional to prospects, listing a broad scope of work in which they specialize even though they are not currently performing that work. If the underwriter finds such contradictories, they may reject the application or request more answers, which also can slow down the underwriting process, leaving the business uninsured and vulnerable