Tech Errors and Omissions Professional Liability Insurance

Person typing on a computer

 Types of Tech Professional’s Insurance

FAQ

Add-Ons and Bundles

Tech Errors and Omissions Covers Various Technology Professionals

 

  • Support Specialist
  • Computer Programmer
  • Quality Assurance Tester
  • Web Developer
  • IT Technician
  • Systems Analyst
  • Network Engineer
  • User Experience Designer
  • Database Administrator
  • Computer Scientist
  • Software Engineer
  • IT Security Specialist
  • Data Scientist
  • IT Director
  • Management Information Systems Director
  • Applications Engineer
  • Cloud System Engineer
  • Data Quality Manager

Things to Consider Before Purchasing Technology Insurance

 

Consider Timing

Tech Errors and Omissions Insurance works on a claims-made basis.  What does that mean?  Simply put, it means that the date the claim is made matters. Why?  Because, it determines which policy term will be in charge of responding to the claim.

Essentially, the date of the event doesn’t matter just the date the claim is being made.

In addition, insurance policies typically have a retroactive date. Basically, this covers claims between the retroactive date and the policy start date.

If you want to ensure that your past claims are covered, you’ll want the retroactive date to be the date that you started your business.

Thus, it is important to take this into consideration when you are buying Tech Errors and Omissions Insurance.

What you should know about legal representation and defense.

Insurance companies usually provide defense attorneys on your behalf. Why? Well, consider this for a moment:

If you were to provide your own attorney then that attorney may be over the price of what insurance can cover.

Further, this is why insurance provides you with an attorney. It’s because they will find someone who will be covered based on your policy. But, this is also because insurance usually has negotiated rates with law firms.

Here’s another thing to consider. Defense costs are taken into consideration when paying for damages. What does this mean?

Well, let’s refer to an example. Let’s say you have a $2,000,000 claims limit. If the defense costs $1,000,000 then that means you only have $1,000,000 left to pay the damages.

This is important information to consider when choosing your claims limit.

Does my company protect me? If so, to what extent?

Before making any type of insurance purchase, double-check with your employer to make sure that your company doesn’t already cover the policy.

Obviously, if your company already protects you then you don’t want to accidentally purchase something additional that you don’t need.

But most importantly, you want to make sure that your company protects you as an individual employee.  In many scenarios, the company buys policy for the entire organization, but that policy doesn’t necessarily cover you as a specific employee.

If you aren’t fully protected, or as protected as you’d like to be, then purchasing tech errors and omissions insurance may be in your best interest.

What if I own my own firm?

If you own a firm then you may want to look into other policies that protect you and your employees. 

Also, owning a firm can have an impact on your insurance quote.  So, be sure to click “Customize Quote” below to see what you’d pay.

checkboxes on a page

Get a free quote to see how much you’d pay

 

There are a range of factors that may influence your quotation.  For example, your area of practice, your location, and your salary can all have an impact on your insurance quote. 

Above all, it is our goal to give you a fair and accurate estimate.  Below, we’ve provided a place where you can input this information.

So, if you’re interested in customizing your quote to see what your rate would look like, click on “Customize Quote” below.

Three Simple Ways to Protect Your Business Against Tech E&O Claims

 

Aside from purchasing Tech Errors and Omissions Insurance, here are a few ways that you can reduce the number of claims against your business:

  1. Make sure both parties sign the contract before you start working

While this seems like common sense, it’s a good reminder because sometimes we can get ahead of ourselves.  The more specific your contract is, the better.  Here are specifics you should consider including:

  • Deadlines and goals for when your work will be completed
  • Payments, including how you will be paying the client and when
  • Other expectations that both parties have agreed upon

These are only a few suggestions.  If you have more questions about contracts, be sure to consult: https://www.upcounsel.com/how-to-write-a-contract.

2. Keep track of everything you do

It may be beneficial to keep a folder of information that details everything that you and your client have talked about in meetings or over email.  If you have proof in writing, it will be much harder to make a claim against you, your company, or your employees.

3. Communicate in order to build trust

Communication is a great way to establish and maintain trust with a client.  For example, if you know that you will be running behind on a deadline or project, be sure to let the client know.

Being proactive in situations will give you an advantage and allow you to build trust with your clients.

4. Have good business practices

It’s obviously important to make sure you are providing the client with the practices you’ve claimed to offer.  When marketing your company, be sure that your promises deliver and meet the needs of the client.

It’s always a good reminder to make sure you’re practicing white-hat business techniques.

Other Types of Insurance for Tech Professionals

Even professional liability won’t cover certain work mishaps.  As a professional working in the technology profession, you’ll want to check out some of these policies.  Especially if you want to make sure you are additionally protected.

Data Insurance

This policy is especially helpful for those working in the technology sector. It covers data breaches and cyber theft in the case of data hacks. Notably, it pays for the legal fees, rebuilding costs, and reputations that are associated with these types of claims.

Worker's Compensation Insurance

Firstly, the price of this policy depends on the number of workers in your business and the occupational risk.  This means it can range anywhere between $800-$1200 per year.  More importantly, however, is that it covers medical bills from job-related injuries and wage replacements for recovery time.

Employer's Liability Insurance

Also known as EPLI, this policy allows additional coverage for one’s employees.  It covers claims filed that involve employment, hiring, and HR practices.

Bundles 

Many insurance plans are commonly bundled together for simplicity and a cheaper rate.

Business owner’s policy (BOP)

A popular option for small businesses like clothing boutiques that combines Commercial General Liability insurance with Commercial Property insurance, usually at a cheaper price than if the two were purchased separately.

Tech Errors and Omissions FAQ

What is Technology Errors and Omissions Insurance and how does it protect me?

Tech Errors and Omissions Insurance is the same thing as Professional Liability Insurance, except it only applies to those working in technology.  It covers the following items:

  • errors that result in a financial loss for the client
  • false statements made by your company
  • failing to take care of a project for a client
  • software copyright infringement
  • when your product fails
  • misleading clients

This said, Tech Errors and Omissions Insurance doesn’t cover everything.  Here are a few examples of situations that Tech Errors and Omissions Insurance doesn’t cover:

  • Data breaches (this type of policy falls under data/cyber insurance)
  • Vandalism or theft of a facility
  • Injuries that your employees sustain

Is there a difference between Tech Errors and Omissions Insurance and Professional Liability Insurance?

Nope, there isn’t a difference.  In fact, Professional Liability Insurance and Errors and Omissions Insurance mean the same thing and they offer the same coverage.  The only difference here is that Tech Errors and Omissions specifically refers to those working within the technology sector.

Why do I need Tech Errors and Omissions Insurance?

Simply put, to protect your business against claims.  As with any professional, technology professionals run the risk of causing their clients financial loss.  Any time a client loses money from your service it gives them the opportunity to sue, even if the claims are false. 

Keeping this in mind, Tech Errors and Omissions Insurance is going to help protect you against these claims that come up as a result.

What are examples of claims that would fall under Tech Errors and Omissions Insurance?

Example #1:

You’re tasked with designing software that aggregates data for a keyword research company.  The client says that they want phase 1 to be done in three months.  However, you start falling behind on the goals and deadlines that are set each week by the client. 

As a result, the client files a claim against you stating that you failed to deliver your work on time.  But, you claim that the reason you did so was that the client kept changing what they wanted to include in phase 1.

Example #2:

Your company has just landed a huge client.  You’re excited, because they are your biggest yet.  But, you’re so desperate to please the client and keep their business that when they ask if you can perform user design services you say yes.  Even though you know that your company doesn’t specialize in it. 

Sooner or later the client finds out that you aren’t able to provide user design services, which was a feature specifically outlined in the contract.  As a result, they end up suing you for fraud.

Example #3:

You designed a software to help your client organize their files.  The software works fine for a couple of weeks.  But then, the client comes to you and complains that the software made his or her computer crash. 

As a result, the client ends up suing you because your product caused damage to their property.

When should I buy Errors and Omissions Insurance?

Ideally, you’ll want to purchase this type of policy as soon as you open your business. Or, similarly, as soon as you find out that your company doesn’t cover you as an employee.

When this policy is enacted it covers incident claims and lawsuits. On the contrary, if you don’t have the policy, it will not cover any incidents or lawsuits.

What's the difference between Tech Errors and Omissions Insurance and Data Insurance?

Data Insurance covers cyber breaches.  Such as, hacks to your company’s database full of customer information.  Whereas, Tech Errors and Omissions Insurance covers professional incidents.  It covers product malfunctions, inaccurate statements, or overall negligence.

Can I receive coverage?

We Care Insurance offers Errors and Omissions Insurance to various professionals like yourself.  Every professional that is listed in the section above is covered by We Care Insurance.

But, if your job isn’t listed in the sections above, and you want to know if you will be able to receive coverage, please contact [email protected] or (402) 957-2123.  We’re always happy to answer any questions you may have.

Do we insure people with many claims?

Yes! We have select carriers for people who have many claims or a bad record.

How much will it cost me?

So, this depends on a number of things like your salary, the number of previous claims, and where you are located.

We’re committed to giving you a fair, accurate, and personalized quote.  So, if you’d like to see how much it will cost, be sure to click “Customize Quote” above.

Do I still need to buy insurance if my company provides it?

Great question!  So, this depends what your company covers.  Sometimes, your company can only cover certain aspects of insurance with their plans.  Specifically, if they don’t cover allegations involving negligence, misrepresentation, and false information then you may want to look into Professional Liability Insurance to make sure that you’re covered. 

More importantly, be sure to ask your employer what your company covers before purchasing Professional Liability Insurance.

If you can’t find your answer here, please don’t hesitate to ask a representative through our messaging system or email.