Let's protect you from possible mistakes in your professional services.
Errors and Omissions Insurance for IT Companies
Technology errors and omissions insurance, also known as E&O insurance and professional liability insurance, can help cover legal fees resulting from a client's dissatisfaction with your professional work, and much more. For instance, E&O insurance can cover oversights and mistakes, failure to deliver promised IT services, accusations of professional negligence, third-party cyber liability (data breach lawsuits).
If someone sues your business for making a mistake in the professional services you’ve provided, this insurance can help protect your business from claims of:
- Errors in services given
- i.e., Software sold to a client had glitches that caused them to lose a month's worth of billing data
- Your cloud-based data services failed to backup critical data that a customer cannot recreate
- Oversights and mistakes
- i.e., Equipment you installed prevented your customer from receiving online orders for 48 hours
- The website you designed for a customer looked too much like its key competitor's site
- Failure to deliver promised IT services
- Accusations of professional negligence
- Third-party cyber liability (data breach lawsuits)
- Intellectual property and media liability (for certain professions)
- Violation of good faith and fair dealing
- Inaccurate advice
What's Not Covered
Be aware that an E&O policy doesn't cover every type of liability claim. This insurance won't help your business with claims of:
- Illegal acts and purposeful wrongdoing, such as intentionally breaking the law or deceiving your customers or clients.
- Bodily injury or property damage that your business causes.
- Employee injuries or illnesses caused by their work.
- Discrimination or harassment in the workplace that your employees file.
Who Needs It?
There are many types of businesses that need tech E&O insurance because of the products and services they provide.
Software and information technology specialists, including:
- Packaged or custom software developers
- Website designers
- Computer consultants
- Systems integrators
- Federal government IT contractors
- Hardware and electronics manufacturers
Businesses that produce electronic components, such as:
- Consumer electronics
- Communications equipment
Providers of telecommunications and integrated communication services, like:
- Local exchange carriers
- Long distance telecom carriers
- Internet/application service providers
- Website hosting
Note: Errors and omissions insurance doesn’t help cover claims from events that happened before your policy’s retroactive date. It also doesn’t help your business with claims filed after your policy’s extended reporting period.
Interested in an insurance proposal at no obligation or cost?
Need more insurance coverages?
Business Auto | Business Interruption | Commercial Property | Cyber Liability | Directors & Officers
Employment Practices Liability | Errors & Omissions for IT | Fiduciary Liability | Foreign Package for IT
General Liability | Professional Liability | Umbrella/Excess Liability | Workers’ Compensation