Technology E&O professional liability protects your company from
claims if your client holds you responsible for programming errors,
software performance, or the failure of your work to perform as promised
in your contract.
Coverage includes legal defense costs - no matter how baseless
the allegations. E&O insurance will pay for any resulting judgments
against you, including court costs, up to the coverage limits on
Why do I need technology E&O insurance?
What most agents who don’t understand your business fail
to tell you, professional liability insurance coverage is not
provided by a general liability policy. Standard liability policies
do NOT provide coverage for “professional exposures” such
as programming errors, contract performance disputes or any other
professional liability issues. IT consultants and companies who
have general liability without Errors or Omissions coverage are
taking a serious risk. It’s like a lawyer practicing law
without malpractice insurance.
Every firm makes a mistake at some point. For example, you recommend
to a client that they run a certain test of their system, after
you did some extensive work on it. The client takes your advice,
the system crashes, and they are unable to conduct business for
a whole week. The client is looking for answers, calls his counsel,
and looks to you for dollars for their downtime.
Another important item to note is that ALL E&O POLICIES ARE
DIFFERENT. Just as in your business, every company provides a bit
different product offering. Some can include cyber liability coverage,
intellectual property coverage, coverage if you are using independent
contractors, coverage for copyright infringement, and security
issues. Sound confusing…..don’t worry, let us guide
you through the maze!