E&O / Professional liability insurance
Learn how to protect your IT consulting business by understanding the liability risks and taking steps to safeguard your assets.
Typically, you need to contact your insurance carrier directly when you want to file a commercial insurance claim. But the steps you take may differ based on whether you're filing a property claim or a liability claim.
Prior acts coverage, also known as nose coverage, offers protection from events that occurred before your existing policy was purchased, up to a particular retroactive date.
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 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.
Want your insurer in your corner? A duty to defend policy makes it an insurer's obligation to provide legal defense for a lawsuit, instead of just compensating you for the claim.
An expiration date is the day your insurance policy lapses. Your insurance coverage will typically end at midnight on your policy's expiration date.
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.
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 rider is an insurance modification that adds extra protection to a policy and enables businesses to customize it to their specific needs.
A tort is defined as a wrongful act or omission that harms a business or an individual. They often lead to lawsuits.
A claimant is a person or business entity that files a claim to receive payment for a specific loss under the terms of an insurance policy.
A claims-made policy is a type of insurance that only covers claims while it's active. If a client lets their claims-made policy lapse before reporting an incident, the insurer won't recognize the claim.