Both technology errors and omissions insurance and cyber liability insurance address cyber risk. But they do so from different perspectives.
ProWriters is here to help you understand how these policies work so you can ensure your clients get the most from each, avoiding critical coverage gaps.
Why Your Tech Company Clients Need Tech E&O Coverage Now
Technology errors and omissions insurance (tech E&O insurance) covers companies providing technology products and services. Companies selling software, for instance, or those providing data storage or website design fall into this category.
Tech E&O coverage protects such companies when their products or services fail. It also applies when these companies make mistakes or are negligent, causing their customers financial harm. These errors can range from missing project deadlines to recommending unsuitable technology.
When clients sue to recover their losses, technology E&O insurance pays for legal expenses and indemnity payments. These costs can include, among others:
- Court costs and related fees
- Attorney fees
- Settlement money
- Court-ordered legal judgments
Technology companies should buy tech E&O policies that include cyber coverage. Depending on the claims situation, coverage can get very complicated if a company doesn’t have both.
How Tech E&O Insurance Differs from Cyber Coverage Policies
Technology errors and omissions insurance responds to a failure of a tech company’s products or services. Cyber liability insurance responds to a data breach or other cyber incident for companies using technology—in other words, almost any business today!
In this digital age, virtually all businesses store and access third parties’ personal information. Customer email addresses, credit card numbers, and more are all integral to commerce today. They raise a host of data privacy and security issues businesses literally can’t afford to ignore.
Cyber coverage is for costs associated with data breaches and other cyber risks. These costs can include, among others:
- Investigation costs
- Third party notification (customers, vendors, and others affected)
- Regulatory fines
- Credit monitoring for affected individuals
- IT forensic costs
- Public relations and reputation management
- Ransom payments
- Business interruption costs and similar financial losses
Every company needs cyber insurance because nearly every company uses technology that could be compromised. Tech companies should purchase tech E&O insurance in addition to cyber coverage, in order to cover their business in case of professional mistakes.
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Why Bundling Cyber and Tech E&O Insurance Is a Smart Move
What happens if a tech company’s software service fails, leading to exposure of third-party data?
A pure tech E&O insurance policy would cover the service failure, but may exclude costs associated with the data breach. And though a cyber liability policy is designed to cover cyber incidents, it might not cover this particular event if it was caused by a service failure and not a hacking incident.
Companies should package tech E&O coverage with cyber liability insurance to ensure their policies will respond to any situation. A quality technology insurance policy will cover tech E&O and cyber.
If a tech business owner who is your client asks for cyber coverage only, explain why they need technology errors and omissions insurance, too. We at ProWriters can help you make the case and find the coverage your clients need.
What is Tech E&O Coverage?
Your tech clients are highly susceptible to errors & omissions (E&O) related risks, more so than other industries. Download our eBook to learn more about how you can protect your clients with Tech E&O coverage!
ProWriters Gives You a Cyber Coverage Competitive Edge
To guarantee your clients get the coverage they need, partner with ProWriters.
Tech E&O insurance is a hard market in 2022. Insurance companies view the risk of technology errors and omissions as greater than ever. Consequently, coverage is more difficult to find.
But ProWriters equips you to succeed all the same.
Through our innovative Cyber IQ Platform, we offer underwriting services on behalf of multiple carriers. Our agents and brokers can compare multiple quotes at the same time, in one place. These quotes detail the coverage offered in plain English so you feel fully informed explaining policies to your clients.
And we’ll soon launch a Tech IQ Platform so you can similarly quote tech E&O insurance policies to clients. You’ll even be able to bundle policies, giving tech companies full, adequate coverage.
Our customer service is unparalleled. Call us any time to get personalized attention. We’re always ready to assist you, including by talking with your clients directly.
We work closely with agents and brokers to help them ensure their clients don’t encounter any unpleasant coverage surprises. You’ll have peace of mind knowing you’re giving your clients accurate, transparent information.
ProWriters is beside you every step of the way. Our expertise and experience in the nuances of the insurance industry will make you more effective in educating and selling to your clients.
Schedule a call with one of our insurance experts for more information.