The evolution of the technology world is changing every single second. Due to the progression of the technology industry the risks of operations are transforming as well. We are poised to be a valuable partner that has an expertise in understanding the exposures of your operations and the knowledge of the most suitable risk transfer methods. Rhodes has developed top of the line programs to offer the most comprehensive coverage and risk management tools available. We take pride in providing added value to our clients by making sure they understand the potential liabilities and uncertainties that lie at the forefront of their tech based businesses.
Market Segments We Serve
- Application Development
- Hardware and Software Development
- IT Consulting
- Website Design
- SAAS Providers
- Life Science
- Medical Technology
- Financial Technology
- Excess Liability (Umbrella)
- Tech Errors & Omissions (E&O)
- Directors & Officers (D&O)
- Media Liability
- Workers Compensation
- Employment Practices Liability
Technology Professional Liability Errors and Omissions Coverage
As a business utilizing technology to produce and deliver products and/or services, it’s important to recognize and take precautions against risks that your commercial general liability coverage does not include. Technology professional liability coverage, also referred to as tech errors and omissions (E&O), is essential for companies using technology because it will cover claims of third-party financial harm. Tech E&O manages risks resulting from providing a product or service to a third party that are not covered by a General Liability policy. Specifically, tech E&O protects your business in the event that a third party suffers a financial loss due to your product or service not performing as it was intended or expected, including the event of an error or omission committed by your company. These policies also cover defense costs in the event of litigation. Tech E&O coverage would apply in the following situations:
- A mistake was made and an error in the code of a website or program your company produced isn’t found before it is implemented. A third party depends on this product or service to operate its business and its operations are stalled due to the error, causing them a financial loss.
- A part your company produces is installed in a piece of equipment. After a short amount of time, the component simply stops working, causing the equipment to fail to work, but otherwise not damaging anything or hurting anyone. The third party that relies on this equipment for its business has to stop operations and suffers a financial loss.
- An employee of your company recommends that a client make an adjustment to its network. The client follows the advice and its network crashes as a result, causing a time and financial loss for its operations.
In all of these cases, General Liability coverage would not cover a claim or any costs of litigation because of the presence of an error and the lack of resulting physical damage to the third party’s property. It should be noted that tech E&O policies usually exclude product recall, but some will accept damages for loss of use of a failed product.