Why Can’t I Get My Tech Professional Liability Insurance Quote Over The Phone?

Tech Insurance Frequently Asked Questions:

If I give you my information, why can’t you give me my Professional Liability quote over the phone? 

The answer is simple- We want to make sure that we are not wasting your time or ours by having to clear up misunderstandings or perhaps missing some information.  Although it seems simple that you can just give us the information over the phone, our online system thoroughly goes through the questions in a few simple steps to make sure we have every thing that we in order to get you the best quote possible. Many of our carriers will not accept an application that has been filled out by anyone other than the insured. 

By saving time on the phone, we are able to save the company as well as the insureds money in the long run by providing you with the best coverage at the most reasonable rates.

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Categories: Cyber Liability, Errors & Ommissions, Professional Liability

Data Floating In Cyberspace

Do you know how much of your organization’s data is getting into cyberspace? Daily vital information about your company and your employees is seeping out and probably into the wrong hands.

There are laws in place in more that 40 states that are requiring companies to notify customers if their data may have been compromised. Not only is damage done to the company’s reputation, but also in some states, if a company neglects to inform an individual of possible identity infringement, then they may face civil liability, regulatory and legal cost.

Founder and executive chairman of the board, Timothy Sullivan of Fidelis Security Systems has developed a risk management method that moves the focus from “intrusion” to “extrusion” prevention. Sullivan states that the way companies handle the personal data of their clients and employees are of utmost importance.

Fidelis Security System’s XPS is the only one that runs at such high speeds to thwart unauthorized transfer of sensitive data on all network channels according to Sullivan.  The system provides content security to all e-mails, file transfers, and peer communications. Evidence of extrusions can be obtained to enforce laws that control privacy and financial data integrity, states Sullivan

“Ninety-eight percent of computer investment today involves trying to prevent people from getting into a system. We believe some of that money would be well spent in trying to keep information from getting out.”

Source: Rough Notes Magazine, April 2009, Greg Davis http://www.roughnotes.com

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Categories: Breach Of Security, Cyber Liability, Errors & Ommissions

Tech Company Personal / Advertising Injury Coverages

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.
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Categories: Cyber Liability, Errors & Ommissions, Personal / Advertising Injury, Professional Liability

Data Breaches Growing Rapidly: Tech Companies Uninsured

Over the past two and a half years, there have been over 225 million reported consumer data breaches. This year alone, there have been more than 30 million reported security breaches of consumer data. No one knows the actual numbers since it is suspected that most security breaches are unreported.

Most tech firms and regular businesses with exposure don’t have insurance to cover this exensive peril. Liability for the following categories of expenses are common in these breaches of security:

*Class action lawsuits

*Regulatory fines, fees, penalties

*Statutory notification expenses

Tech companies that collect confidential information or assist clients that do the same must make sure that their Professional Liability / Errors & Omissions policy is specially endorsed to respond to breach of security lawsuits. Non tech companies with exposure must make sure that their Cyber Liability policy does the same.

Source: S.H. Smith & Company, Inc. E Bulletin, 10-19-08

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Categories: Breach Of Security, Errors & Ommissions, Professional Liability

Most Common Sources Of Tech Lawsuits

IT professionals such as computer consultants, web designers, programmers, system integrators, etc. face lawsuit risks from their clients and users of their client’s services. The most common sources and corresponding insurance policies are outlined below:

1. Bodily Injury And Property Damage Liability (General Liability)

2. Personal Injury And Advertising Injury Liability (General Liability or Errors & Omissions Liability)

3. Negligent Acts, Errors, Omissions In Performance Of Professional Services Resulting In Economic Damages (Errors & Omissions Liability)

4. Intellectual Property Infringements such as copyright, trademark, etc. (Media Liability)

5. Breach Of Security (Unauthorized Access, Computer Virus, Denial Of Service)

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Categories: Errors & Ommissions, General Liability, Professional Liability

High E&O Limits Difficult For Small Tech Accounts

We were recently approached by a small tech prospect who requested a $10,000,000 Errors & Omissions Liability limit (AKA Professional Liability) to comply with contractual requirements of a project owner. Our primary E&O market for tech accounts is approved to handle limits only up to $5,000,000. Our MGA provided quote indications for an excess layer for an additional $5,000,000 from two carriers. However, the minimum premiums for this excess layer were $25,000 and $30,000 respectively.

Any carrier providing a limit approaching $10,000,000 will be wary of why the project owner would require such a high limit in the first place. This is likely to be a red flag that the type of work is high risk and as a result the underwriters will closely scrutinize such a submission.

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Categories: Errors & Ommissions, Professional Liability, Small Business