No matter how careful people are, or how advanced technology becomes, people still make mistakes. Unfortunately, heartfelt apologies don’t always satisfy angry clients and customers, leaving no alternative to a lawsuit you now have to deal with. In the case of a lawsuit over a mistake related to technology services, technology errors and omissions (E&O) insurance can help protect you and your business.
E&O stands for errors & omissions. Other terms such as professional liability or malpractice can be used as well.
Technology Errors & Omissions insurance is a type of professional liability coverage designed for tech companies to protect against claims of negligence, errors, or omissions in their products or services. It covers legal fees and damages for failures such as software bugs, data breaches, or failure to perform agreed-upon services.
Key components and examples include:
Tech E&O is often used by IT consultants, software developers (SaaS), hardware engineers, MSPs and ISPs; however veterinary focused businesses that provide their product digitally like tele-veterinary platforms need Tech E&O.
Tech E&O is also distinct from general liability and is often paired with cyber insurance to address both the professional negligence and data breach liability.
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