What is the Difference Between E and O and Tech E and O Insurance?

Based on the above title, you are probably scratching your head and asking what does this mean. Tech Errors and Omissions was created as a response to General Liability that did not extend liability to web pages and other electronic risks. Everyone, Tech and non Tech companies, who has a website, or has gone paperless on private employee and/or client information, should have Tech E and O insurance.

Some firms who have a broker who is not knowledgeable, may assume that Tech E and O is errors and omissions insurance (AKA Professional Liability) for the tech company. It is not. How can that be? It is called Tech E and O so the uniformed broker assumes this is a policy especially to cover Tech companies, but this is wrong.Techmaster60

When it comes to E and O insurance, whether you’re a Tech Firm or an Insurance Brokerage, it responds to claims for professional liability, not your Technology, but what you do. Thus if you are a Tech company and are sued under E and O (AKA Professional Liability), then it will be for things like the code you wrote was badly written which caused a tort. Or if you warrant something about your Technology or your service and it was not true or accurate (excluding fraud).

If you are a Tech Company, you want to have Errors and Omissions insurance also known as Professional Liability. On top of this you also want Tech Errors and Omissions insurance to cover your website and other electronic risks and breaches. Do not confuse the two. Also worth noting, E and O will be more expensive than Tech E and O, since the likelihood of a claim is much higher.

About HCP National Insurance Services

HCP National is a one-stop shop for all your insurance needs. We provide all lines of insurance coverage including employment risk management, ASO and Stop Loss Insurance, Fully Insured Managed Care Programs, Medical Malpractice E & O and D & O, Reinsurance, Product Liability, BOP’s, Workers Compensation, All Forms of Property and Casualty Insurance.

 

 

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