Based on the above title, you are probably scratching your head and asking, “What does this mean?” Tech Errors and Omissions was created as a response to General Liability that did not extend liability to web pages and other electronic risks. Everyone, Tech and non- 0Tech companies, who has a website, or has gone paperless on private employee and/or client information, should have Tech E and O insurance.
Some firms who have a broker who is not knowledgeable, may assume that Tech E and O is errors and omissions insurance (AKA Professional Liability) for the tech company. It is not. How can that be? It is called Tech E and O so the uniformed broker assumes this is a policy especially to cover Tech companies, but this is wrong.
When it comes to E and O insurance, whether you’re a Tech Firm or an Insurance Brokerage, it responds to claims for professional liability, not your Technology, but what you do. Thus if you are a Tech company and are sued under E and O (AKA Professional Liability), then it will be for things like you wrote the code badly which caused a tort, or if you warranted something about your Technology or your service and it was not true/accurate (excluding fraud).
If you are a Tech Company, you want to have Errors and Omissions insurance also known as Professional Liability. On top of this you also want Tech E and O to cover your website and other electronic risks and breaches. Do not confuse the two. Also worth noting, E and O will be more expensive than Tech E and O, since the likelihood of a claim is much higher.
HCP National Insurance is not a law firm, but an Employment Practices Liability Insurance, Directors and Officers, and Errors and Omissions insurance brokerage whose home office is in Costa Mesa, CA.
NOTE THE ABOVE IS A GENERAL DISCUSSION ABOUT HOW COVERAGES MAY WORK. YOUR INSURANCE POLICY AND ALL ADDENDUMS ARE THE ONLY AUTHORITY OF HOW YOUR COVERAGE WORKS. DO NOT RELY ON THIS ARTICLE AS AN EXPLANATION OF YOUR COVERAGE. HAVE YOUR ATTORNEY REVIEW YOUR ENTIRE POLICY WITH YOU TO DETERMINE WHAT IS AND ISN’T COVERED.
