| If this error or omission causes a loss
to a customer - professional liability Errors and Omissions
provides coverage.
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.
The risk of legal assessments caused by programming or service
mistakes makes professional liability errors and omissions
insurance an absolute necessity in the IT business. Even with
IT work that seems less risky, there’s no outsmarting
the consequences of a lawsuit. Practically any firm or individual
that improperly performs services can cause a client to suffer
economic loss.
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.
Even if you’re not at fault, litigation is time-consuming,
costly and potentially disastrous to your firms reputation.
Professional Liability Errors and Omissions insurance is
a
cost effective way to protect your business.
Typically, a general liability policy does not cover consequential
financial loss, and most exclude claims arising out of professional
services. To properly cover your exposures, you need comprehensive
Errors and Omissions coverage in addition to your existing
General Liability Policy. Optional coverages may include Media
and Network liability.
Errors and Omissions Liability Insurance coverage provides
legal defense, as well as a financial coverage in the case
of a judgment against you. |
