The standard General Liability policy covers “personal injury” and “advertising injury” unless the insured is in the business of advertising, broadcasting, publishing, or telecasting. For this reason, there is no coverage for IT firms that are in the business of designing websites, determining content, providing content, or providing internet access.
Why do tech firms need coverage for “personal injury”? First of all “personal injury” coverage may be needed to protect a tech firm against an allegation of slander, libel, or oral or written publication that violates a person’s right of privacy. It is not too difficult to see how a tech firm could get sued under these circumstances.
In addition, coverage may also needed for “advertising injury” in the event of an allegation of the taking of another’s idea in your advertisement or infringement of copyright, trade dress, or slogan in your advertisement.
The key word is “advertisement”. There is no coverage for infringement of copyright, trade mark, trade dress, or slogan unless they occur in your advertisement.
An exclusion in the policy form eliminates coverage for injury arising out of electronic chat rooms or bulletin boards that the insured hosts, owns, or excercises control over. In addition, there is another exclusion arising out of the unauthorized use of another’s name or product in your email address, domain name, meta tag, or similar tactic used to mislead the potential customers of another.
It is obvious that the standard General Liability form does not adequately protect tech companies or IT professionals against these imporant exposures. As a result, coverage can be sought as part of a Professional Liability or Errors & Omissions policy form.
These policies can add back essential coverages such as for those tech firms in the business of advertising or publishing, violation of a person’s right of privacy or undue publicity, intellectual property infringements, etc.
It is strongly recommended that tech companies or IT professionals deal with a tech insurance specialist to make sure that their coverage needs are addressed.
