Learn how IT professionals can get protection against lopsided expectations and lawsuits with business liability insurance like E&O.
Business Liability Insurance for IT Professionals Protects Against Errors and Omissions
Imagine if your Information Technology firm designed the data security system at a mega retailer that was hit with a costly data breach. It wouldn’t take long for your embarrassed client’s attorneys to point the blame at your company. Soon, you could be facing an expensive lawsuit that could very well destroy everything you’ve worked so hard to build.
As most small business owners know, business liability insurance is essential for protection against risks of all kinds. For IT firms, it’s no different. But the nature of IT requires special kinds of tech insurance designed to protect you from scenarios like a security data breach.
E&O Protects IT Firms from Lopsided Expectations and Holes in the Law
E&O insurance is especially useful for technology professionals because many of your clients don’t really understand what you do. A client may explain what they need, and your firm would endeavor to deliver a product based on those requirements. But, for whatever reason, the client might be disappointed with the results and decide to sue you. Without E&O coverage, you could be left with the cost of a huge settlement. That’s not to mention the legal defense costs that you would be responsible for even if you won the court case.
E&O insurance can also protect you from inevitable human errors. Your client may think you’re a magical superman just because you’re in IT, but mistakes do happen, and sometimes the consequences can be costly.
Business Liability Insurance with E&O Coverage Is Essential for IT Professionals
A lawsuit can drive a small Information Technology company out of business, especially if the plaintiff is a larger company with more resources. Fortunately, E&O insurance kicks in for covered claims to pay for your attorneys, your court costs, and settlements or judgments you might get stuck with, up to your policy limits. Without this protection, you could lose everything.
Technology professionals aren’t the only professionals who would benefit from E&O coverage. If you provide a professional service for a living, you too should consider errors and omission insurance.
The content above is for informational purposes only and is not intended to provide advice regarding your specific circumstance. Please consult with an insurance professional to discuss your insurance needs.
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