In this era of rapidly developing technology, almost every company relies on computers and technology for the day-to-day activities that keep the business going. Therefore, all these companies regularly hire technology companies to create networks, upgrade systems or simply do maintenance on existing technology, to name a few. Every time a tech company provides a product or service, they expose themselves to liability. Your technology company clients need to protect themselves from the risk that comes from alleged or actual errors and omissions that happen in the field.
For example, imagine that your client’s company designs a piece of electronic equipment that integrates with local telephone systems. All it takes is for one distracted sub-contractor to install the device improperly in a way that damages the lines and leaves your client open to a potential lawsuit.
Technology E&O Insurance Can Protect Them
Technology E&O is a type of insurance specifically designed to help mitigate the risk technology companies face each day. With the right insurance, an expensive lawsuit doesn’t have to bankrupt them.
Accidents happen. No matter how competent and well-trained staff members are, no matter how carefully developed network security systems are, human error still inevitably leads to accidents that can damage your clients’ reputation, ability to market themselves and/or interrupt their cash flow. However, accidents need not take your clients out of the game permanently.
Talk to your clients today about technology E&O. Once they’ve got the coverage they need, a data breach, an improperly installed device, a trademark infringement claim or any other tech-related mishap might still be embarrassing, but it certainly won’t be disastrous. In the end, your clients will be exceedingly grateful that you recommended the technology E&O policy to them.