Friday, March 28, 2014

What you Need to Know about Technology E&O

One of the biggest fundamental errors a firm can make is assuming that their programming, systems installation, hardware maintenance or technology consulting is covered by their General Liability policy. When data, especially that containing personal information, becomes involved, firms become exposed to a plethora of new risk exposures. Allegations of copyright infringement, transmission of a virus, or unauthorized access to a client’s system due to technology error, regardless of fault, can result in losses in excess of $100,000. According to Hiscox Ltd., a leading provider of specialized professional liability coverage, 80% of their tech related claims are filled under breach of contract and intellectual property.  A general Professional Errors and Omissions policy offers negligence coverage only. Without Technology or Professional E&O, companies remain exposed to contract and intellectual property lawsuits but also to fraud, negligence and misrepresentation claims.

Apply for Technology E&O Here
Send Completed Applications Here

Technology Negligence Claim

Plenty of companies can attest to the necessity of Technology Errors and Omissions coverage. One of these organizations in particular provided hardware, software hosting, planning, networking and online data backup through automated software monitoring services. One particular customer, a local plumbing company, was running their business through an old and corrupted server that left the automated software monitoring service they purchases useless.  After six months of the technology company providing a service that, unbeknownst to them, was not working, the server at the plumbing company finally failed. Without the automated system, the plumbing data was unrecoverable. As a result of this inattention by both companies involved, the technology company was brought to court by their plumbing customers for expenses incurred as a result of the failed server. This one incident cost the technology company over $100,000.

Data Breach Claims

Technology companies are not the only ones at risk. According to SC Magazine's data breach archive,  Just in the past month, there have been there have been multiple hospitals that have reported their patient databases as compromised. The San Francisco Department of Public Health has recently released a warmed that more than 50,000 patients’ personal information may be in jeopardy after multiple computers containing client information were stolen. Incidents like this happen all too often.

Why Shop at Apogee?

Our product expertise and dedication to customer satisfaction will ensure that you receive a competitive, personally tailored quote and our close relationships with insurance providers allows us to offer coverage from top markets such as USLI, Beazley, Chubb, Hiscox and many more. For Technology E&O, we accept applications for companies with revenues bellow five million with basic risks and companies with revenues over 5 million with more complex risk coverage. To learn more or talk to an account manager about what we can do for you please visit our website or contact us at 610.337.3200