Technology
Errors & Omissions
What is Technology Errors & Omissions?
Technology errors & omissions coverage protects against claims by a client that a loss due to error or oversight in a product such as software program or web service. It is designed to protect your business from significant risk of economic loss related to intellectual property, network liability, and cyber property security.​
Coverage Situations
Tech E&O coverage would apply in the following situations:
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A mistake was made and an error in the code of a website or program your company produced isn’t found before it is implemented. A third party depends on this product or service to operate its business and its operations are stalled due to the error, causing them a financial loss.
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A part your company produces is installed in a piece of equipment. After a short amount of time, the component simply stops working, causing the equipment to fail to work, but otherwise not damaging anything or hurting anyone. The third party that relies on this equipment for its business has to stop operations and suffers a financial loss.
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One of your employees recommends that a client adjust its network. The client follows the advice and its network crashes as a result, causing a time and financial loss for its operations.
Technology Risks
Technology insurance coverage is designed to protect against the significant risk of economic loss related to the intangible assets a company owns. A comprehensive risk management plan needs to guard against the unique exposures that the use of technology presents.
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A cyber liability policy is a coverage that protects against damage from cyber-attacks, data breaches and other basic risks that result from using electronic communications and data storage.
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Data breach notification laws – These state laws dictate the requirements for notification if an organization were to suffer a data breach that compromised personal data, such as Social Security numbers and financial and health information.
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Cyber property – The intangible property your company owns. This can include websites, data and networks. These intangible assets can all be damaged.
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Media and intellectual property liability – All content on the Internet is considered to be published, meaning it is subject to copyrights and infringement. Negative content published online about a person or company can be considered libelous.