E&O / Professional liability insurance
Technology professional liability insurance provides coverage when you’re accused of negligence, mistakes, or oversights. It also covers data breaches that affect your business or a client’s operations.
What happens if a client sues you, claiming that you made a mistake that hurt their business? Professional liability insurance, also called errors and omissions insurance, protects consultants from costly lawsuits over work mistakes.
Learn how to manage your clients' expectations and how to avoid any potential problems that may arise while consulting.
If your business offers expert advice or provides professional services, you should strongly consider professional liability insurance to protect your company from costly lawsuits. Here’s why you may need this coverage, when it’s required, and how it can safeguard your business.
Professional indemnity insurance provides coverage when a client sues you over errors, oversights, or alleges negligence in your work even if you did nothing wrong.
The average premium cost for professional liability insurance (also called errors and omissions insurance) is about $60 per month. Your industry and the scope of your services affect the exact cost of this policy.
Also known as errors and omissions insurance, professional liability insurance protects your company from client lawsuits over missed deadlines, mistakes, or negligence – regardless of whether you’re at fault.
When you have vicarious liability for something, it means you could be held legally responsible for any resulting harm even though you didn't directly cause it. For example, a tech company could be held accountable for the actions of an employee.
A tortfeasor is a business or individual accused of a tort, which is an act that harms another entity. Torts are often unintentional, but the tortfeasor can still be held liable for damages.
A tort is defined as a wrongful act or omission that harms a business or an individual. They often lead to lawsuits.
Tail coverage is a provision that provides coverage for incidents that occurred while you had your policy, but a claim wasn't filed until after your policy's expiration date.
A rider is an insurance modification that adds extra protection to a policy and enables businesses to customize it to their specific needs.
The retroactive date is the earliest point in time that your insurance policy will cover an incident or dispute. It's sometimes called the retro date or retroactive date of inception.
An insurance renewal is the end of the term of your policy, at which point, you'll need to determine if you'd like to continue under the same policy with the same insurance carrier.
Clients could accuse your tech company of professional negligence if you fail to provide a service or meet their expectations.
