Our reliance on technology is growing more and more complicated. In many ways, technology is more accurate and advanced than ever. However, these rapid developments bring frequent complications, and systems are constantly updating and changing.
It doesn’t require an expert to understand the frustrations that technology issues can cause in our everyday lives, even with something as simple as sending an email. Imagine the number of hurdles a tech company faces on a daily basis as they spend the day managing tech services for clients. This leaves tech clients especially vulnerable. Do your clients need tech E&O coverage?
What Is Tech E&O Insurance?
Technology Errors and Omissions Insurance (also known as tech E&O), is a type of professional liability insurance that provides the insured with protection against mistakes, oversights, errors, or negligent actions by their company or workers. While most businesses strive to provide flawless products and services to their customers and clients, mistakes can and will happen. For technology-based companies, these issues are rampant and claims for the damages that clients face as a result are frequent.
So what is a tech E&O policy good for? From a faulty software update that damages a client’s network to a client’s website crashing during a big sale, in the world of tech, these issues happen every day and can cause serious financial harm.
Tech E&O coverage needs to provide broad coverage to respond to the wide range of claims that can be made against the insured in order to make certain they’re sufficiently protected.
Examples of clients who need this coverage include, but are not limited to:
- Contract software developers
- Software licensing
- IT consulting
- Website developers
- Hosting companies
Do you have clients within these industries asking, “Do I need E&O Tech business coverage?” The answer is yes, and they should seek this coverage immediately.
Tech E&O Coverage vs. Cyber Insurance Coverage
Many business owners make the mistake of having either tech E&O coverage or a cyber liability policy, but not both. They incorrectly believe one or the other is sufficient when, in reality, these coverages are very different and do not overlap.
While tech E&O coverage protects the insured from claims that could arise from errors and omissions the insured company or their workers make, a cyber insurance policy provides coverage against unrelated cyber attacks.
These may include:
- Social engineering and phishing attacks
- Ransomware attacks
- Malware attacks
- Distributed Denial-of-Service (DDoS)
- Data Breach
As strong your client’s cyber security posture may be, there is always the risk that they could fall victim to one of the many cyber risks or data breaches that both large and small businesses face on a daily basis.
Your clients need both tech E&O coverage and a cyber insurance policy to ensure they’re ready to face what tomorrow brings.
Get Started Today With ProWriters
Don’t let your clients go another day unprotected. E&O claims are common and the damages associated with these claims can be extensive. The right coverage can protect your client’s relationship with their own customers and clients and help safeguard the well-being of their financial future. As brokers, you carry an important responsibility in helping them find the right tech E&O coverage to face this broad exposure.
Not sure how to start or where to buy E&O coverage for your clients? Look no further.
With ProWriters, it’s easier than ever to move forward with a technology E&O application. We’re consistently streamlining our processes to make the process simple.
With more than 20 years of industry experience, we can help offer your clients peace of mind while making your job even easier as a trusted partner.
To get started today, contact us or speak with a ProWriters expert at 484-321-2335.