|
What is Technology Errors & Omissions Insurance?
Technology Errors & Omissions Insurance (Tech E&O) covers businesses providing technology services to their clients. A Tech E&O policy protects the insured against any mistakes made while doing business. These coverages are tailored for technology service providers because of the complex nature of their operations. A Tech E&O policy can be purchased with a cyber liability policy for comprehensive protection against online & offline risks.
Why Have Technology Errors & Omissions Insurance?
A Tech E&O policy can cover costs for legal defense, settlements and breach of contract allegations. Attorney fees for court cases or settlement negotiations outside of a court can add up quickly even when your business is not at fault. Many technology businesses large & small do not have the funds to cover these expenses.
• Clients can sue for neglegence in providing a professional service even if your business is not at fault
• For most classes of business, general liability policies will exclude professional services
• Technology related losses can result in total costs over $100,000.
Coverage May Include:
• Defense outside the limit available
• Limits available up to 15 million
• Breach of contract coverage available
• Full prior acts coverage available for first time buyer
• Coverage for mental anguish and distress
• Additional insured status available
• Deductibles start at $0
• Risk management services available for no charge
• Media and intellectual property coverage built into policy forms
• Coverage can combine:
• Technology Errors & omissions
• Miscellaneous Errors & omissions
• Technology Products
• General liability
• Cyber liability
Sample Claim:
Web Developer
Encom Developer, LLC is hired to design a fully functional interactive website for a communication company. After 6 months, the developer fails to deliver the website as promised in their contract and the company must hire another developer to finish the website. The communication company sues and claims damages of $3,000,000 which includes the increased cost to complete the website, lost profits because of the delay in the delivery and the market value of the website.
Target Classes
• Software Development
• System / Network Evaluation
• Network / Computer Security
• Systems Optimization
• Help Desk / Call Center
• Consulting
• Web Site Design
• Graphic Design
• Systems Integration
• Database Administration
• Business Intelligence / Reporting
• Records Management
• Telecommunications
• Web Hosting
• Mobile Application Development
|