If you are a company that sells computer hardware or software to another company, you would probably greatly benefit from investing in a good technology insurance policy. You will save yourself a lot of time and money if you do so, even if the initial cost of the policy seems expensive upfront. Whether you’re a startup or a larger, more established corporation, signing up for tech E & O, or technology errors and omissions insurance, is a wise idea. Let’s look at the basics of technology insurance, and specifically tech E & O insurance.
What Is Technology Insurance, Anyway?
Technology insurance is like any other form of insurance, except specifically for technology providers and technology companies. What does this mean, exactly? Well, let’s say you manufacture and sell computer parts to a computer manufacturer that creates laptops, netbooks and desktop computers. These parts are installed in the computer, and are supposed to work in order for the computer itself to work. If they don’t, then you have a problem. Technology insurance will cover you as the computer part manufacturer and protect you from having to pay any costs for anything related to damages or malfunctions.
What About Tech E & O Insurance?
This is a more specific and granular form of technology insurance. Let’s say you’ve developed a software program that processes data for analysis, and that you sell it to a computer manufacturer to include as part of their complete computer “package”, so to speak. However, when the software is used, it either doesn’t work or doesn’t draw any analytical conclusions from the data. This makes it pretty useless, doesn’t it? Tech E & O would cover you as the software company from having to pay damages related to the errors and omissions that occurred.
Do You Really Need This Type of Insurance?
The short answer is: yes! Most commercial general liability insurance won’t cover the issues that occur with technology, while adding a tech E & O policy or a more general technology insurance policy will greatly benefit you. It is always a good idea to be insured for things that you may suspect will never happen, but could. There’s always that “if”, so it’s wise to be prepared.
But What About Commercial General Liability Insurance?
While these policies are usually great at having a wide range of coverage, they will not cover anything related to errors and omissions. This may be considered by some to be a form of property damage, but it’s not, at least not in the more traditional CGL insurance sense. An error or omission usually just renders property less useful or useless. It’s not really outright damage to the property, so it doesn’t really fall under the scope of a CGL policy.
Get Technology Insurance Today
If you work in the vast field of technology and create products or services that are used by other technology companies or manufacturers, a good technology insurance policy is an excellent idea. ABCO Insurance Agency, Inc. can help you find the policy that’s right for you. Contact us today to see what we can do for you.