What coverage can a technology E&O policy provide, and why do I need it?

You are looking at Tech Malpractice, good for you, but what coverage do you need? What coverage is available. Gila Insurance Group has partnered with CNA to provide coverage to tech professionals. What kind of coverage will you need, and what are the options?

Technology E&O – Tech E&O is really important for tech professionals that developing software, websites or consulting. Ultimately it covers you for your professional liablity. It covers you if you fail to perform as expected. This could mean any number of things from errors and bugs, a breach contract, damaged data. Even if you don’t actually do any of these things if a client believes that you did things can go sideways quickly. A tech E&O policy will cover the cost of defense meaning the lawyer fees, the cost to prove you innocent, and any fees you incure through the court. In addition, if you are found to be liable this policy will cover you for any settlements or judgements that you are responsible for. The cost of defense make this policy well worth the trouble.

But with any policy there are exclusions which are important to understand so that you can get the coverage if needed. If you have a tech E&O policy we are able to add several coverage options that are vital depending on what you do.

Network and Security Privacy – Data Breaches of companies large and small are more and more common. If you are working with sensitive personal data, you have a HUGE exposure to lawsuits. This is because you could be home responsible for the destruction or alternation of data on a client’s network or maybe you leave data exposed and there a breach. Let’s take a look at one scenario.

You are working on a program that has a shopping cart. You are using an existing library, so not a whole lot of exposure, you inadvertently leave a back door open that leads to a hack of your client, and sensitive data is exposed. Your client goes through the process and notifies the clients, pays for the credit monitoring, and they start to investigate how this happened. They find you are responsible, what happens next? The answer? They sue you. How do you defend yourself and pay the settlement? While not exactly a part of the tech E&O policy you are able to get a network and Security Privacy coverage. This is similar to cyber liability coverage, but as a tech professional its slightly different because you may be the potential cause of the loss, which ultimately makes you liable and subject to lawsuits and judgements.

Media Liability – Media liability is a coverage that protects you from advertising, personal injury, or intellectual property claims. This is primary is meant for people that are creating and distributing content for customers. This would include website designers. Social media marketing specialist and consultants and others that are distributing media across the interwebs. Advertising/Personal injury covers the idea of defamation of others and product disparagement. Intellectual property covers copyright and trademark infringement.

General Liability – If you own real estate as a part of your tech business you will need general liability. Also, depending on what your software does you may need general liability to cover the bodily injury and property damage your software can cause.

Regardless of what kind of tech professional you are we can customize the coverage you need to protect you from the perils of doing what you do giving you and your clients the confidence to tackle whatever IT project you might be looking at. Start your Quote line now!