A complete technology insurance package should include professional liability. This exposure is not covered under your business’s general liability policy. A solid IT insurance program should protect your business against:
- Unintentional breach of a written contract
- Negligent misstatement or misrepresentation
- Software copyright infringement
We recommend limits of at least $1,000,000, however it is not uncommon for IT contracts to require higher limits. The larger your business, the more assets you have to protect, therefore larger IT insurance limits are appropriate. Naming additional insured’s onto your technology insurance policy is no problem and and certificates of insurance are completed quickly and without charge. Our clients can even issue their own certificates if desired through our client portal.
In each of these examples, a professional liability IT insurance policy would provide coverage, even if no error was made.
- ABC Developer, LLC is hired to design and build a turn-key interactive website for a communication company. ABC Developer fails to deliver the website on schedule as specified in the contract and the communication company must hire a different developer to finish the work. The communication company sues, claiming damages of $3,000,000, including increased costs to complete the website plus lost profits because of the delay.
- A technology consultant is hired to increase a hosting company’s efficiency. The consultant advises implementation of several internal processes, however the recommendations are not implemented and productivity decreases. The hosting company sues for damages due to breach of contract.