Bitten by an ASP?

There's no worry if you've taken the right precautions.
Magazine Contributor
2 min read

This story appears in the December 2001 issue of Entrepreneur. Subscribe »

In the alphabet soup of technology trends, ASPs are one of the hottest. If you use one, be sure you're protected if something goes wrong.

ASPs (application service providers) allow you to avoid buying software and hardware and still have the latest technology by paying a monthly fee to access applications. But what if your ASP gets a virus, loses data or goes out of business? With the proper insurance, you can recover those losses.

Many of today's technology policies cover losses due to ASP issues, says Richard H. Reynolds, vice president of Morris & Reynolds Insurance in Miami. Some ASPs offer coverage to protect their clients. If yours says it does, Reynolds recommends asking for a copy of the policy and having your insurance agent review it for you.

"If the ASP doesn't offer coverage or the coverage is insufficient, get your own policy to protect your data," Reynolds advises. But, he adds, insurance shouldn't be your first defense against an ASP failure. "Have a backup plan. If something goes wrong, you want insurance to be your last resort because if you get to that point, you've got a big problem." The best insurance when it comes to hiring an ASP is to shop carefully and choose one that's stable, financially secure and has a disaster plan in place.

Jacquelyn Lynn is a freelance business writer in Orlando, Florida.

Contact Source

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.