Tech Errors and Omissions Professional Liability Insurance
Types of Tech Professional’s Insurance
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
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.
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:
- 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.
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.
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.