What is Technology Professional Indemnity? (E&O)

What is Technology Professional Indemnity? (E&O)

What is Technology Professional Indemnity? (E&O)

19 Apr 2023

Technology Professional Indemnity (E&O) is an insurance policy that safeguards professionals and companies within the technology industry against claims. Discover who needs it and what the policy exactly covers.

Technology Professional Indemnity (E&O) is an insurance policy that safeguards professionals and companies within the technology industry against claims of errors, omissions, or negligence concerning the products or services they provide.

The coverage of this insurance policy includes legal defence costs and settlements or judgments in the event a client asserts that a technology service or product underperformed, damaged their property or business, or led to financial losses. The policy also covers various technology-related risks like software and hardware defects, network outages, data breaches, and intellectual property infringement.

What types of business need Technology PI insurance ?

Technology PI insurance is a necessity for any business offering technology-related products or services, including but not limited to software development, IT consulting, web hosting, cloud computing, data processing, and telecommunications.

There are several specific types of companies that should consider obtaining Technology PI insurance, including:

  • Software developers and publishers

  • IT consultants and service providers

  • Website designers and developers

  • Cloud computing and hosting providers

  • Data processing and storage companies

  • Telecommunications and Internet service providers

  • E-commerce and online marketplace platforms

  • Social media companies

  • Artificial intelligence and machine learning developers

  • Cybersecurity and data protection companies

In general, any company that provides technology services or products that could potentially result in financial loss or harm to their clients or customers should consider purchasing Technology PI insurance.

Example of claims

Below I have put together a few claims examples that will help illustrate how a Technology policy can be vital to your risk management strategy.

Breach of Contract / Failure to Deliver:

A client hires a technology implementation consultant to install a new system that is expected to enhance their business's efficiency and productivity. However, the system fails to meet the promised outcomes, and the client may sue the consultant for the expenses incurred by the failed project.

System Outage:

A cloud service provider experiences a network outage that leads to significant downtime for their clients. The clients may seek compensation for the loss of revenue and productivity due to the outage.

Software Bugs & Errors:

A software company develops and sells a new product that has a critical bug resulting in data loss or system crashes for its customers. The affected customers may file a claim against the software company for the loss of data, productivity, or other damages.

Intellectual Property Infringement:

A gaming developer accidentally uses code from a third party without permission, leading to a lawsuit for copyright infringement. The developer's Technology policy may cover the legal defence expenses and any resulting settlements or judgments.

Data Breaches:

A legal firm experiences a data breach that exposes sensitive customer data. The affected customers may sue the company for damages, such as identity theft or financial losses.

Should you or your client need a consultation on your Technology insurance needs or a bespoke policy suited to your business get in touch today?

Technology Professional Indemnity (E&O) is an insurance policy that safeguards professionals and companies within the technology industry against claims of errors, omissions, or negligence concerning the products or services they provide.

The coverage of this insurance policy includes legal defence costs and settlements or judgments in the event a client asserts that a technology service or product underperformed, damaged their property or business, or led to financial losses. The policy also covers various technology-related risks like software and hardware defects, network outages, data breaches, and intellectual property infringement.

What types of business need Technology PI insurance ?

Technology PI insurance is a necessity for any business offering technology-related products or services, including but not limited to software development, IT consulting, web hosting, cloud computing, data processing, and telecommunications.

There are several specific types of companies that should consider obtaining Technology PI insurance, including:

  • Software developers and publishers

  • IT consultants and service providers

  • Website designers and developers

  • Cloud computing and hosting providers

  • Data processing and storage companies

  • Telecommunications and Internet service providers

  • E-commerce and online marketplace platforms

  • Social media companies

  • Artificial intelligence and machine learning developers

  • Cybersecurity and data protection companies

In general, any company that provides technology services or products that could potentially result in financial loss or harm to their clients or customers should consider purchasing Technology PI insurance.

Example of claims

Below I have put together a few claims examples that will help illustrate how a Technology policy can be vital to your risk management strategy.

Breach of Contract / Failure to Deliver:

A client hires a technology implementation consultant to install a new system that is expected to enhance their business's efficiency and productivity. However, the system fails to meet the promised outcomes, and the client may sue the consultant for the expenses incurred by the failed project.

System Outage:

A cloud service provider experiences a network outage that leads to significant downtime for their clients. The clients may seek compensation for the loss of revenue and productivity due to the outage.

Software Bugs & Errors:

A software company develops and sells a new product that has a critical bug resulting in data loss or system crashes for its customers. The affected customers may file a claim against the software company for the loss of data, productivity, or other damages.

Intellectual Property Infringement:

A gaming developer accidentally uses code from a third party without permission, leading to a lawsuit for copyright infringement. The developer's Technology policy may cover the legal defence expenses and any resulting settlements or judgments.

Data Breaches:

A legal firm experiences a data breach that exposes sensitive customer data. The affected customers may sue the company for damages, such as identity theft or financial losses.

Should you or your client need a consultation on your Technology insurance needs or a bespoke policy suited to your business get in touch today?

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Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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