When providing technology-driven services, any errors in software, algorithms, or processes could lead to significant financial losses for clients. Technology Errors & Omissions (E&O) protects against these types of claims and responds to allegations of professional mistakes or service failures.
Reasons to Carry Tech E&O
Liability for Data Breaches & Cyber Risks
Technology companies often handle sensitive financial data, making them prime targets for cyberattacks.
- Cyber liability insurance addresses breach response.
- Technology E&O provides coverage for financial losses clients may face due to technology-related issues on your end.
Contractual Obligations
Clients or business partners may require Technology E&O insurance as part of service agreements.
- Demonstrates commitment to mitigating risks.
- Instills confidence in your ability to deliver services reliably.
Reputation Management
Claims of errors, omissions, or system failures can damage your reputation.
- Technology E&O provides financial coverage.
- Assists with managing disputes and protecting your brand.
Mitigation of Legal Risks
Most industries have strict rules for storing private client data.
- Non-compliance or failures can lead to lawsuits or claims.
- Technology E&O offers financial support in these cases.
Complex Ecosystem of Products & Services
Integrated solutions involving APIs, third-party partnerships, or proprietary software increase risks.
- Technology E&O covers liabilities from these complexities.
Conclusion
Technology E&O safeguards companies from potential financial and reputational damages caused by errors, omissions, or technology failures, ensuring the company can focus on innovation and growth.
The information contained herein is general in nature and not intended as insurance advice. For specific details, consult your policy or broker.
