Most companies would not consider operating without general liability insurance, and yet only a few businesses have invested in technology errors and omissions insurance. Technology E&O insurance isn’t only for startups and tech companies – in today’s business environment, nearly every business is open to risks that can only be prevented by technology insurance. Read on to discover the difference between technology errors and omissions insurance and general liability insurance, and why you shouldn’t do business without both.
What Technology E&O Insurance Covers That Standard E&O Doesn’t
Unfortunately, standard errors and omissions policies fail to cover many of the risks that are inherent to the current business environment. Technology E&O insurance offers protection from the growing number of liabilities that nearly all companies are subject to.
It’s not just companies that are at risk, contractors and consultants also need insurance to protect them from lawsuits and spurious claims. Technology plays an integral role in nearly every business these days, but most organizations are unaware of the potential legal problems that stem from its usage.
The following are just a few of the situations that general professional liability insurance rarely covers, but that technology errors and omissions insurance typically does:
Business interruptions caused by software crashes, hardware failures, or network interruptions
- Data breaches, whether intentional or accidental
- Failure to meet software benchmarks during the creation of a new program
- Data loss due to hackers or viruses
- Coding errors
- Intellectual Property Rights (IPR) lawsuits related to online content
- False claims about the security of a company’s site
More Reasons to Invest in Technology Errors and Omissions Insurance
Technology develops very quickly, making it nearly impossible for laws and legal precedents to keep up. As a result, it’s up to companies and individuals to make sure they’re covered. Technology errors and omissions insurance can provide protection against the widening array of potential liabilities created by use of computers, fax and copy machines, websites, and cloud computing.
Read more about technology errors and omissions insurance, or contact InsuringTech.com today (855-837-TECH) to get a policy that meets your needs!