The technology sector is critical to today's economy. More people are using software and hardware in their standard business. Therefore, those who provide these assets enable others to do their jobs.
You can't underestimate the importance of this industry. You also can't minimize the impact in the event something goes wrong. If you are in the technology industry, what can you do if a client suffers losses because of your mistakes?
For tech professionals, the answer lies in professional liability insurance. This is critical protection for many business owners in the professional service industry.
Understanding Professional Liability Coverage
Another name for professional liability coverage is errors & omissions coverage. It helps businesses whose errors (or mistakes) lead to losses for their clients. It also covers omissions, or mistakes caused through a company's inaction. Clients could hold a business responsible for their losses under these circumstances. In these cases, the right coverage can pay for the losses. Let's think about this in the case of the tech industry.
E & O Coverage In A Tech Setting
Perhaps you design software that helps hospitals determine the costs of patient care. When a company needs to send out medical bills, they want to handle them efficiently. Your company wants to meet that need.
However, a problem arises. During assembly, a glitch with the software develops unobserved. When your client uses the software, they make miscalculations that cause improper billing. That causes them to let their own customers down. They also face significant costs trying to fix the damage. In this case, your professional liability coverage might help you pay back the client. They can use your funding to recoup the damage to their operations.
E & O protection can apply not only when clients face external problems, but also during internal situations. Let's say you build phone headsets for clients to use when talking to customers. What you might not realize is that after a certain time, the wiring in these items will burn out. That means your clients cannot perform their duties. That equals a loss to them, and they might hold you responsible. You can use your E & O coverage to reach a settlement with the affected parties.
It's important to talk to your Kasky Insurance agent about the way to insure your technology company. They can help you determine the appropriate E & O base policy and add coverage enhancements. So, don’t hesitate to get coverage now.
Also Read: What Your BOP Won’t Cover