Professional Liability (Errors & Omissions) Insurance
Efficient, Enhanced and Cutting Edge Solutions
In 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:
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
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
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.
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:
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
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.
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