The Insurance Your Clients Demand You Have and Why You Need It: Bullet Points on Public Liability and Errors & Omissions Protection

July 3, 2012 No Comments »

Actually, the answer to one question we get asked all the time is the answer to why your client wants you to have two types of liability coverage.

Question:  “Why Do I Need Errors & Omissions Coverage?”

Answer: Your clients use your services because they rely on your expertise as a professional in the technology field and…

  • General Liability (“GL”) policies (and the general liability section of the “Businessowners (“BOP”) policy) both exclude any protection for “professional services.”
  • Your clients can sue you for a wrongful act in providing professional services, which can be the result of an act, error or omission - Not Covered by GL
  • Very often, it is not the result of a mistake, but rather displeasure with the outcome. Even frivolous lawsuits will incur defense costs. - Not Covered by GL
  • Programming errors, improper selection, installation, or configuration of networks/systems, failure to maintain the systems - Not Covered by GL
  • Failure to meet the requirements of a contract (ie timelines/content) are common scenarios leading to lawsuits for technology professionals. - Not Covered by GL
  • Failure to prevent unauthorized access (“hacking”) and unintentional introduction of malicious code (“virus”) - Not Covered by GL

Yes, this is the “sales portion of the program,” but hear me out - United States Liability Insurance Group (USLI) and L.E. Goldsborough & Son, Inc. both specialize in insurance for Technology-based companies.  The simple goal is to offer comprehensive coverage at a competitive price.  There are few (if any) others that can provide Intellectual Property, Unauthorized Access, Personal Injury and Malicious Code protection for both small and large companies alike (yes, even startups).  This coverage (Professional Liability) can be combined with a Business Owners package (General Liability) and can even include Hired and Non-Owned Auto insurance (check your contracts, bet your client wants this too) all at a cost that won’t blow the bid specs.

Don’t just buy a policy like a can of soup. There are differences and a little guidance from a knowledgeable agent will save you money, time and maybe everything you have worked for.

IMPORTANT: This document does not amend or extend or alter coverage afforded by any policy.   For a complete understanding of any insurance you purchase, you must first read your Policy, Declarations Page and any Endorsements and discuss them with your broker.   A specimen policy is available from an Agent of the Company.   Your actual Policy Conditions may be amended by Endorsement or affected by state laws.

Leave a Reply