Technology Errors and Omissions Insurance

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In a world that is moving at lightning speed with technology, it is an excellent opportunity for many businesses. As an IT business owner, the last thing you want to think about is the fact that you might be sued at some point during your career. Lawsuits are an unfortunate reality in any industry, but now even more so with the technology industry. When purchasing a Technology Errors & Omissions (E&O) insurance policy, it is essential to know what it covers and what it doesn’t. The policy is a Professional Liability insurance policy designed just for technology companies including, but not limited to, software developers, programmers, digital marketers, app developers, and consultants.

What Are Some Common Technology Errors & Omissions Risks?

You probably already know that there are a ton of risks associated with your technology business. Some of the most common include breaches of contract, making bad recommendations, being careless, or making errors or omissions when working on a project. These all sound bad, but sometimes things happen that are unintentional. It is vital to protect your business with a Technology E&O insurance policy to help reduce these risks.

What Does Technology E&O Cover?

Many different insurance companies offer Technology E&O insurance so be sure to read your policy carefully, as they may provide different coverages. There are several that are common throughout all the policies.

  • Network Security – This is the most common claim as of now. An example is if you were responsible for changing a terminated employees login information and fail to do so, this could cause a security breach.

  • Extortion – A hacker may steal information and demand money be paid. Costs involved with a lawsuit – Even if you are found not guilty or no settlement is awarded to the person who sued you, defense costs can be extreme. The policy will provide coverage for this.

Some other common coverages that may be added as a special endorsement onto a Technology E&O insurance policy are Intellectual Property and Media Liability, Business Income (income lost due to a covered claim to keep your business afloat), and Cyber. It is important to note that Technology E&O insurance and Cyber Liability insurance are distinct coverages, so the latter will always need to be added as an endorsement.

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How Much Does Technology Errors & Omissions Insurance Cost?

While each insurance company will be different, you can expect that a Technology E&O insurance policy to start at a minimum of $1,000 annually. The cost will depend on the limit you select, which usually ranges anywhere from $1,000,000 to $5,000,000 depending on how much business you do. There are policies available for higher limits if necessary, some even offering up to $20,000,000. CoverWallet’s team of educated insurance professionals can work with you to determine what limit will best suit your needs.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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