Technology Professional Liability Insurance for Business Protection

Technology Professional Liability Insurance is a must-have for businesses in the tech industry. It protects against errors, omissions, and negligence in professional services.

With the rise of technology, businesses are increasingly relying on professionals to manage their digital presence, develop software, and provide IT services. A single mistake can lead to financial losses and damage to reputation.

In fact, according to recent statistics, 70% of tech companies have been sued for professional negligence. This highlights the importance of having adequate insurance coverage.

Having Technology Professional Liability Insurance can also help businesses to maintain a competitive edge in the market, as it demonstrates a commitment to quality and risk management.

Technology Professional Liability Insurance is a type of coverage that's a must-have for businesses providing technology services, especially to large vendors.

The good news is that this form of coverage is currently available to many businesses, you just need to know where to look.

It's not as expensive as many businesses fear, giving you a reason to seriously consider investing in it.

You should carry this form of coverage if you're in the space of providing technology, as it can provide protection against errors and omissions.

If you're in the tech industry, you're likely using technology to provide a service or product, which means you need to take precautions to protect yourself from potential risks. Most companies today use technology in some part of their business.

Tech Errors & Omissions Insurance is not just for tech industry businesses with obvious tech-related risks. A full risk management assessment is needed to ensure your company is covering all bases.

Lots of businesses need Tech E&O, including Software Creators, Consultants of IT, Computer Hardware Repair, Website Builders, SEO Advisors, Project Management, IT Contractors, Metaverse Businesses, Social Media Managers, Cyber Security Professionals, and many others.

Competition, customer expectations, and talent retention are just a few of the challenges facing technology companies. Having the right insurance can afford you some peace of mind to address all the other challenges your business faces.

Here are some examples of companies that may need Tech E&O:

These are just a few examples, and the list is endless. It's likely you know who you are if you're in a special class of IT that can be hard to obtain insurance for.

Tech errors and omissions insurance is designed to protect your business from financial losses due to errors or omissions in your product or service.

There are two main types of professional liability policies for the tech industry: Claims Made and Occurrence. Claims Made policies require the policy to be in effect both when the event took place and when a lawsuit is filed.

Some insurers may provide coverage for elements like Products and Services Liability, Breach of Contract, Sub Contractor Vicarious Liability, Regulatory Costs, Dishonesty of Employees, and Payment Withheld Fees.

Tech E&O insurance policies typically offer coverage for a wide range of risks and liabilities, but specifics may vary between insurance providers.

Tech errors and omissions insurance manages risks that are not covered by a Commercial General Liability policy, specifically financial losses due to an error or omission committed by your company.

Here are some common coverage areas offered by Tech E&O insurance policies:

Tech errors and omissions insurance also covers defence costs in the event of litigation, protecting your business from financial losses due to errors or omissions in your product or service.

To get a quote for technology professional liability insurance, you'll need to provide some essential information. This typically includes the type of technology services your business offers, such as software development, cybersecurity, or IT consulting.

The number of employees and their job roles will also be important, as this can impact the level of risk your business faces. For example, a company with a team of experienced developers may be considered lower risk than one with a team of junior staff.

Your business's annual revenue will also be a key factor in determining the cost of your insurance premium. This is because higher revenue typically means higher risk and therefore a higher premium.

You'll also need to provide information about your business's technology infrastructure, such as the systems and software you use and any data you store or process. This will help the insurer understand the potential risks associated with your business.

The level of coverage you need will also be a critical factor in determining the cost of your insurance premium. This will depend on the specific risks you face and the level of protection you require.

Finally, you'll need to provide information about any previous claims or incidents that may have occurred, as this can impact the cost of your insurance premium.

Cyber risks are a major concern for technology professionals, and it's essential to have the right insurance coverage in place. Cyber Liability insurance can provide protection against losses related to hacking, data breaches, or other cyber incidents.

Some Tech E&O insurance policies may include limited coverage for certain cyber-related risks, but it's crucial to work closely with an experienced insurance broker to ensure the coverage adequately addresses the unique risks associated with the technology products or services provided.

Data breaches can have severe consequences, including financial losses for clients and regulatory penalties. In fact, many Tech E&O policies now include coverage for data breach liability, which can help protect the insured business in the event of a data breach or unauthorized access to sensitive customer information.

Here are some key risks that Cyber Liability insurance can help mitigate:

By having the right Cyber Liability insurance coverage, technology professionals can protect themselves and their businesses from the financial consequences of cyber risks.

Technology Errors and Omissions insurance helps businesses mitigate various risks and protect their financial well-being. Here are some of the key risks that Tech E&O insurance can address:

Professional Negligence: Technology professionals can make mistakes or overlook critical details, leading to financial losses for their clients.

Contractual Disputes: When providing technology products or services, businesses often enter into contracts that specify certain deliverables and performance standards. If a business fails to meet these contractual obligations, it may face legal disputes and claims for financial damages.

Data Loss or Corruption: Data is a valuable asset for many businesses. In the event of data loss or corruption caused by technology errors or omissions, clients may suffer financial losses or reputational damage.

Intellectual Property Claims: Technology companies may face claims of intellectual property infringement, such as copyright violation or unauthorized use of patented technology.

Cybersecurity Breaches: With the increasing threat of cyberattacks and data breaches, businesses that handle sensitive customer information are at risk of financial and reputational damage.

Here are some examples of the coverage offered by Berkley for technology firms:

As a technology professional, you're likely aware that your final product is often your advice, installation, or execution. This means that if something goes wrong, you could be held liable.

Examples of common claims and scenarios include software that damages a company's computer systems. This can result in significant financial losses and damage to a third party.

A product that your company designs may not be the latest version, leading to performance issues or other problems. This can also lead to financial loss or damage to a third party.

Failing to complete a project on time can also lead to claims and liability. If you commit to a specific date and fail to deliver, you could be held responsible for the consequences.

If a technology product or service fails to perform its intended function or purpose, resulting in financial loss or damage to a third party, you could be at risk of a liability claim.

The cost of technology professional liability insurance can vary significantly, depending on factors such as revenue earned. I've seen Tech E&O policies costing anywhere from $1,000 to over $23,000.

Scouting the internet, I'm amazed at how many sites share average numbers on premiums, but it's hard to pinpoint an exact average. General Liability Shop.com offers a free IT analysis of your firm's risks and affordable liability and Tech E&O insurance quotes for technology companies.

If you're looking for a specific quote, you can contact General Liability Shop.com's Technology Insurance Specialists at 800-900-8657 or start a Tech Insurance quote online. They offer a range of insurance programs, including Target programs for business owners policies (BOPs) and Commercial Packages.

Here are the most common business insurance classifications for IT companies:

The cost of Tech Errors and Omissions insurance can vary greatly, with some premiums ranging from $1,000 to over $23,000.

It's difficult to pinpoint an average number, as various factors and revenue earned play a significant role in determining the cost.

Scouting the internet reveals a lack of consistency in sharing average numbers on premiums associated with this form of insurance.

Tech Errors and Omissions insurance costs depend on a number of factors, making it challenging to provide a specific number.

You can get a free IT analysis of your firm's risks and affordable liability and Tech E&O insurance quotes from General Liability Shop.com. They offer a range of insurance programs for technology and IT companies across the U.S.

To get started, you can contact one of their Technology Insurance Specialists at 800-900-8657 or start a Tech Insurance quote online now.

If you're looking to compare quotes, it's essential to understand the liability classification system used by commercial insurance companies. This system helps classify and rate coverage premiums and costs for technology insurance.

There are numerous liability classifications since Tech Services vary significantly. Here are some common business insurance classifications for IT Companies:

You can also use the NAICS Liability Classifications to find the right insurance program for your business. Here are some examples:

General Liability Shop.com also offers Business ISO General Liability classifications, which include:

Understanding these classifications can help you get the right business insurance quotes for your technology company.