Technology Insurance

Professional Liability Insurance is critically important for anyone running a technology company.

What is Technology Professional Liability?

In the marketplace, Technology Professional Liability is often referred to as “Technology Errors & Omissions” or “Tech E&O.” For many technology products, the likelihood of causing financial harm is greater than causing actual bodily injury or property damage. Tech E&O is an essential coverage for tech companies because it:

• Addresses the exposure of financial harm to a third party that occurs because of a “glitch” or negligence in a tech company’s products or services
• Closes a significant gap in coverage for tech companies, since General Liability coverage typically does not address claims of pure financial harm to third parties.

Because of the interrelation between the two coverages, whenever possible, it is desirable to have Tech E&O and General Liability placed with the same carrier.

Typically, Tech E&O:

• Is considered a severity type of coverage because it is not typical to see a high frequency of these claims from one company
• Covers significant defense and indemnity costs, with claims for defense costs generally ranging from $200,000 to $300,000
• Can help to keep a small to moderate-sized tech company in business, since the defense costs alone for a Tech E&O claim can jeopardize their ability to remain in business – even if the defense costs do not reach the typical E&O claim levels

For more information on Technology E&O Insurance contact, LNR Insurance Services at 847-915-7400 or fill out our online form above for your FREE Technology E&O Insurance Quote today.

Illinois Insurance Agency offering Technology E&O Insurance policies in
Algonquin, Crystal Lake, Huntley, and Lake in the Hills Illinois.