Professional Liability (Errors & Omissions) Insurance

Efficient, Enhanced and Cutting Edge Solutions

Efficient

Professional LiabilityIn the technology industry, efficiency is the name of the game. That’s why we are dedicated to finding efficient solutions to help you better serve your technology business. With Technology Errors
& Omissions coverage now available, you will benefit from the following:

  • One policy
  • One bill

Enhanced

We have always offered industry-leading Technology E&O forms. The breadth of coverage needed for your business should not be based on your age but what you actually do. Coverage features of our new form include:

  • All of your products and services are covered unless specifically excluded
  • The definition of insured includes independent contractors
  • Worldwide coverage that allows for defense outside of the United States
  • Automatic coverage for Vicarious Liability for any entity you are required by written contract to include as an insured for liability
  • Coverage for loss of use of tangible property that is not physically insured for telecommunication services
  • Provision for mediation that, when mutually agreed to by you and your carrier, reduces the deductible by 50%, or up to $10,000, whichever is less
  • No exclusions for delay in delivery or unauthorized access
  • No exclusion for work performed during installation, testing or pending approval from client
  • Duties in the event of a claim are triggered upon knowledge by a Chief Executive Officer, Chief Financial Officer, President or Risk Manager
  • Investigation of a potential claim without eroding the limit of insurance, or the application of a deductible, may be allowed at the carrier’s discretion
  • Technology E&O limits from $500,000 up to $5,000,000 are available
  • Competitive deductible options
  • And much more

Cutting Edge

We also offer the following optional coverages:

  • Information Risk endorsement addresses:
    • Extension of Network Security and Privacy Injury Liability beyond the performance of services
    • Coverage for emotional distress in absence of physical bodily injury
    • A sublimit for Privacy Regulation Proceeding including privacy regulatory fines
    • Online and offline breaches, which include removable media and paper files
    • A Privacy Event Expense sublimit that is triggered based on the event rather than a regulatory requirement
    • A Network Extortion Expense sublimit
  • Media Liability endorsement addresses:
    • The response to content injury committed in the performance of a media activity
    • The violation of an individual’s rights of publicity, including commercial appropriation of name, persona or likeness
    • Libel, slander, product disparagement, trade libel
    • Content injury includes items such as infringement of copyright, title slogan, logo trademark, trade name, trade dress, service mark or service name
    • Copyright of software code available by endorsement
    • Broad definition of media activities include developing, producing and recording media
    • Dissemination of media through any medium by any means
    • Unfair competition or trade practices, including misleading advertising

Help Protect Your Technology Company from a Range of Professional Liability Exposures

Tech Insurance Solutions offers a total insurance solution for technology companies, including our robust suite of technology professional liability products. The following claim scenarios provide examples of different “glitches” that can occur for technology companies and demonstrate the resulting claim/indemnity expenses that your technology clients may face. More importantly, these scenarios emphasize the importance of ensuring that your technology clients are adequately protected through a third-party professional liability product that addresses these exposures.

Scenario 1

Type of Claim: E&O
Cause of Action: Negligence/failure to perform
Type of Insured: Software Company
Facts: A software company sells and installs a computerized fare system for a transportation authority. It also has the responsibility to regularly maintain and support the system.

  • Situation: An overnight software upgrade results in erratic behavior of the fare system, including failure of the fare system equipment to operate. This failure results in fare system outages throughout the majority of stations that comprise the authority’s network.
  • Challenge: As a result of the system failure, many stations allow passengers transportation without proof of paying the fare. The transit authority services thousands of passengers each day, and the event causes harm to the transit authority’s reputation. The transit authority sues the software company for negligence in the performance of services, specifying damages that include:
    • Lost revenues
    • Extra expenses associated with the need to pay for additional staff to manage the crisis, including overtime pay to personnel
    • Lost revenues associated with reputational damages caused by the event

Resolution: Claim expenses: $25,000+ Indemnity: Settled for $300,000

Scenario 2

Type of Claim: E&O
Cause of Action: Negligence/failure to perform
Type of Insured: Software Developer
Facts: A software company manufactures and distributes workforce management software that allows third parties to track employee hours, overtime, vacation time and compiles information for payroll processing. The software company enters into an agreement to provide the software to a customer, including implementation, installation, customization, training and support services.

  • Situation: Six months after installation, the customer isn’t happy with the performance of the software program, specifically alleging a functionality failure. The customer agrees to allow the software company a six-week period to cure the default.
  • Challenge: After this time period elapses without a satisfactory resolution, the customer terminates the contract due to negligence and failure of the product to perform as intended. Damage allegations were in excess of $700,000.

Resolution: Claim expenses: $50,000 Indemnity: Settled for $250,000

Additional scenarios can be added as requested, I just didn’t want to spend the time to create all ten scenarios in case you don’t want to feature all ten of them since this content is fairly time consuming to setup.

  • Manas Mudbari
    Highly recommend for anyone starting a startup company.
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