As part of our expanded coverage of our 2025 Technology Power Broker winners and finalists, Risk & Insurance spoke to James Standish, vice president and technology & life sciences national practice leader at Travelers. What follows is a transcript of that discussion, edited for length and clarity.

Risk & Insurance: Thanks for meeting with us, James. What industry knowledge should brokers possess to help their clients achieve risk management and risk transfer success in the technology sector?

James Standish: One crucial aspect that brokers should consider is the interplay of coverages, particularly how different coverages interact to minimize gaps. A prime example is the interplay between technology errors and omissions (tech E&O), cyber and general liability coverages.

Typically, placing these coverages with a single carrier makes the most sense. At Travelers, we can tailor coverage to meet the unique exposures of the customer when they place multiple lines with us, helping to minimize gaps. This approach also streamlines claims handling, as our dedicated Business Torts Claim group has extensive experience handling complex claims.

Understanding the decision-making process at technology firms is also key. In addition to traditional decision-makers like CEOs, CFOs, legal, and HR, positions such as chief security officer or chief information security officer have gained prominence in these companies and can influence insurance decisions.

Furthermore, technology firms typically focus on growth and often turn to private equity or venture capital financing. These outside investors, who may sit on the board, can also impact choices.

Brokers should also be familiar with the evolving regulatory requirements affecting their technology clients. The technology company’s brokers are often dealing with multiple regulatory bodies and have limited internal resources to keep up with changes.

Lastly, choosing the right insurance partner, one with expertise in the space and an understanding of innovation, is crucial. Our more than 40 years of experience in this sector, both on the underwriting and claim side, enables us to provide specialized support and help technology and life sciences companies address their specific risks, regardless of their size or stage of growth.

R&I: What are the key advantages of choosing a single carrier for complex risks that require multiple lines of coverage?

JS: When a complex risk is placed with a single carrier across multiple lines, it enables the underwriters handling those different lines to collaborate and share insights. We typically have one underwriter managing all those different lines for a given account.

This approach offers significant benefits. The underwriter gains a comprehensive understanding of the customer’s risk profile, leading to more informed decision-making. It also streamlines communication and coordination, as the customer has a single point of contact for all their insurance needs.

Moreover, this integrated approach allows for a more holistic risk management strategy. The underwriter can identify potential gaps or overlaps in coverage and recommend solutions to optimize the customer’s overall insurance program. This level of coordination is more challenging to achieve when multiple carriers are involved.

R&I: What is your perspective on the impact of mergers and acquisitions in the technology sector and the associated risks?

JS: Mergers and acquisitions are both a source of growth and risk for technology companies. 

By acquiring other companies, a firm can expand or diversify their product offerings, enter new market niches, and venture into new regions. These objectives can sometimes be achieved more efficiently through acquisition than by building from scratch.

However, mergers and acquisitions can create exposure due to the integration of multiple insurance programs with varying terms and conditions. Non-insurance factors, such as different data security approaches or levels of sophistication, can also cause vulnerabilities.

From a broker’s perspective, it’s crucial to be involved early in the process. Technology companies are often focused on bringing their ideas and technologies to market, and insurance can sometimes be an afterthought. 

If brokers are brought in too late, they may have to rush their due diligence, potentially missing important details or having incomplete information, which could complicate the underwriting process. 

R&I: What coverage lines or areas are particularly challenging for technology companies in today’s fast-moving, complex landscape?

JS: The challenges can vary from firm to firm due to the unique nature of technology companies. According to Travelers’ proprietary technology industry research, which included buyers, agents and brokers, the coverage lines that get the most attention are those that have the highest costs or generate the most claims. They also prioritize lines that are driven by contractual, investor, grant or regulatory body requirements, such as directors and officers insurance, or ones that are central to their operations, such as product liability for electronics manufacturers and technology errors and omissions for IT companies.

Interestingly, cyber insurance can be a coverage gap for technology companies. Our 2024 Travelers Risk Index revealed that while 84% of technology companies believe having proper cybersecurity controls in place is critical, 29% lack the necessary insurance coverage, highlighting a mismatch between perception and action.

Technology companies may also underestimate the amount of business interruption coverage they need within a cyber policy, whether that’s related to an IT service provider breach or their own system failure. Without the proper guidance, these customers may face limit inadequacies.

In addition, many technology companies do business worldwide, which creates new business exposures. These risks require specialized underwriting and an understanding of differing laws and regulations across the globe. 

R&I: What risks should brokers be aware of when it comes to AI development and usage?

JS: Brokers and risk managers should understand the framework developed by the National Institute of Standards and Technology (NIST), which outlines seven AI risk categories: accountability, safety, reliability, bias, security, privacy and explainability.

For AI users, safety is paramount, particularly in guarding against unintended or harmful outcomes. Accountability is also crucial, as there can be a lack of clarity regarding responsibility when AI fails. 

Ensuring accuracy of the output from AI tools is vital. Generative AI tools can generate content that is not based on reliable information, which is why it’s important to validate any output.

Brokers should also understand how their customers use AI and the associated risks. Low-risk AI usage might involve optimizing web servers, while high-risk AI could be used to diagnose medical conditions without human oversight.

Brokers should also consider how the customer’s contractual risk transfer impacts where liability is placed and whether it is with the party that has the most control over the AI. Comprehensive insurance coverage is a key component to a good risk management program because it can help organizations that develop AI reduce the financial exposures that they may face.

R&I: What are some key technology trends and risks that brokers should be aware of, particularly in the electronics manufacturing, telecom and IT sectors?

on delays, which can have a ripple effect on other manufacturers relying on those components. Companies that choose to stockpile components in an effort to mitigate this risk can end up increasing their property exposures to risks including theft, fire and flood.

Telecom companies typically have large property schedules, including towers and buildings, which are vulnerable to increasingly severe weather events and natural disasters. These events can lead to property damage and network interruption, further increasing property exposures.

For IT companies, rapid growth can present challenges. Companies can quickly scale from small startups to large entities, which can lead to risks such as finding skilled talent, ensuring proper coverage when acquiring new firms, and aligning policies and procedures. Managing this growth holistically is crucial.

R&I: What are the outstanding traits of the brokers you admire, particularly in terms of their understanding of the technology industry and emerging areas like advanced manufacturing?

JS: The brokers who differentiate themselves have a deep understanding of technology companies, recognizing the interplay of coverages, the decision-making process, and how tech companies operate. They remain apprised of trends in the space.

Advanced manufacturing is an emerging area where brokers can set themselves apart. With the implementation of new technologies, more modern factories, and government incentives such as the CHIPS and Science Act, this space is poised for growth. 

Brokers have more of this business than they think they do. For example, in the robotics subsection, there are nuances to consider from both the manufacturing customers’ perspective, who are increasingly using robotics, and the robotics manufacturers themselves. Brokers and agents who think about these additional layers of complexity will be successful in this evolving landscape. &