Technology E&O is a confusing area for most brokers.
Technology E&O is a generic term adopted by a number of insurers offering liability insurance policies to persons and organizations involved in technological services, or with exposures that require a special policy to fill the gaps created by changes that have occurred over time in commercial general liability insurance policies.
Among those that may be a market for technology E&O insurance are computer software companies involved in the development, installation, and sales of software (custom or packaged); computer hardware manufacturers; telecommunication companies; Internet companies involved in Web site design, systems outsourcing, and consulting services; data service providers; and Internet service providers.
Errors and Omissions insurance (also known as Professional Liability insurance) is a basic safeguard for your IT business. Errors and omissions insurance protects technology businesses against potentially catastrophic litigation involving professional negligence or charges of failing to perform professional duties.
Many computer consulting companies are becoming aware of these legal threats and, to protect themselves and subcontractors, are requiring their subcontractors to carry Errors and Omissions Insurance. If a client company experiences what it perceives to be an actionable error or omission, even if the problem occurs months after the initial consulting activities, both the consulting firm and subcontractors can be held liable and met with law suits.
Cyberspace Internet Liability addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. Cyberspace Internet Liability Insurance coverage offers cutting edge protection for exposures arising out of Internet communications.
Anyone with a Web site now has the legal liabilities of a publisher. The Internet-that technological wonder of worldwide communication – has spun a whole new “web” of liability exposures. Creating a Web site is simple. The exposures that come with it are not. Privately owned companies that venture onto the World Wide Web face liability exposures that are emerging, evolving, and complex.