Technology E&O professional liability protects your company from claims if your client holds you responsible for programming errors, software performance, or the failure of your work to perform as promised in your contract.

Coverage includes legal defense costs - no matter how baseless the allegations. E&O insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.

Coverage extends to both W2 employees and 1099 subcontractors, and can be worldwide in scope.

It can be required by web hosting companies like Exodus or Globix, as well as by investors, particularly VC’s.

Don’t Be Fooled. Professional Liability Insurance coverage is not provided by a Commercial General Liability policy. Commercial General Liability does NOT provide coverage for programming errors, contract performance disputes or any other Professional Liability issues. IT consultants and companies who have General Liability without Professional Liability (Errors or Omissions) coverage are taking a serious risk. It’s like a doctor practicing medicine without Malpractice insurance.

Mistakes Happen. Every company messes up at some point. For example, you recommend to a client that they run a certain test of their system, after you did some extensive work on it. The client takes your advice, the system crashes, and they are unable to conduct business for a whole week. The client becomes enraged, calls his attorney, and looks to you for reimbursement.

You Can’t Be Everywhere. Sometimes you can’t personally handle every job. E&O coverage insures not only your mistakes, but also the mistakes of the employees and Independent Contractors you hire.

Most Importantly: Technology E&O professional liability insurance might save you from extreme embarrassment, a lost client, or worst of all, a bad reputation.

It’s a competitive business environment. Your service standards and reputation are what set you apart from the competition. Customers demand more and expect more. They are not easily pleased and when their expectations are not met; a dispute may arise. They may seek their remedy in court, believing your company’s assets are an available source of relief. IT and technology professional service providers operate in a perilous business climate characterized by:

• Higher service expectations
• A societal belief that there’s always a “deep pocket”, and
• Ever escalating awards and settlements

When you are faced with a lawsuit from a customer, win or lose, the financial ramifications are serious. Every company wants to mount and fund the best defense possible. But sometimes even the best efforts aren’t enough and a company may face costly damages, in addition to legal fees. InsureCast crafted technology E&O professional liability insurance coverage for the unique exposures of technology firms. We specialize in offering liability insurance protection for technology, IT, Internet, software and bio-tech firms. Please go to our online CoverageCoach questionnaire to get a free no obligation Technology E&O Insurance quote.