THURSDAY, APRIL 21, 2011
After reading a recent report on the 25 fastest growing industries for 2011, it was interesting to learn that 20% of these industries are technology/computer related. Here at the McFarlin Insurance Agency, we've also seen an increase in technology business. While the coverages for tech risks continue to expand and evolve, the one coverage we cannot stress enough to our clients is Technology E & O (errors and omissions). "But we already carry general liability insurance," they say. "Why do we need more liability insurance?"
Tech E & O is designed to protect the insured against claims stemming from clients holding you responsible for programming errors, software errors, or the failure to perform work as promised in your contract. In other words they cover losses incurred that will cause a financial injury. Most E & O policies include coverage for legal defense costs, which can often be as expensive as the claim itself. Additionally, we're seeing more and more contract provisions in our office that require tech companies to carry this important coverage. While general liability insurance is important (and in most cases inexpensive), it is limited in what coverage it affords to the technology industry.
Have more questions? Give McFarlin Insurance a call today and we'll be happy to discuss more detail!