Professional Liability Insurance
(Errors and Omissions Insurance)

The basic policy form covers 'wrongful acts" defined as any actual or alleged negligent breach of duty, error, misstatement, misrepresentation, omission, personal injury or other negligent act done or attempted by an insured, or any person for whose acts the insured is legally responsible, in the provision of:

• Technology Services to others for a fee, or
• Technology Products, but only in conjunction with the insured's provision of Technology Services to others for a fee.

• The business entity listed on the policy.
• Any subsidiary listed on the policy.
• Respective principals, partners, offices, directors, managers, LLC members, stockholders, trustees, and employees.
• Independent contractors pursuant to a written contract and while acting under the direction and control of a named insured.

Notable exclusions from coverage are claims alleging bodily injury and property damage (coverage for these should be picked up by most General Liability policies); intellectual property infringements (buyback available); Fraudulent or criminal acts (buyback available for innocent officers); one insured sues another insured; liability assumed under a contract in an indemnification or hold harmless provision (does not apply to your liability in the absence of such a contract); Federal or State securities acts; insolvency or bankruptcy of insured; pollution; asbestos; recall, repair, replacement or removal of insured's products from the marketplace (limited buyback is available); attributable to any guarantee or exceeding cost estimates; electrical or mechanical failure except these caused by insured's wrongful act; attributable to wear or gradual deterioration of any product sold; claims arising from antitrust, restraint of trade, unfair or deceptive business practices, or unfair competition; unsolicited electronic dissemination of faxes, email, or auto dialing; discrimination; investment advice; prior or pending litigation, breach of contract between any insured and any staffing or employment agencies; and any wrongful act not involving the provision of computer and technology products and services.

The tech contractor that you are working for can be named as an "Additional Insured". However, it may not be in such tech contractor's best interest or your best interest to do so because the "insured vs. insured" exclusion may preclude coverage if you are sued by the tech contractor for whom you are working.

The basic Tech Professional Liability policy automatically includes certain coverages for personal injury, virus liability, and unauthorized use/unauthorized access of your client's systems.

The basic Tech Professional Liability policy starts out at a minimum premium of $1,000 for many smaller tech companies and increases in proportion to expected revenues.

Add Electronic Media Liability (Approximate 10% surcharge)

Adds coverages for certain wrongful acts arising from electronic publishing, disseminating, releasing, gathering, transmission, production, web casting or other distribution of electronic content on the internet on behalf of the insured or by the insured for others. Includes coverage for certain defamation; disparagement; libel; interference with the right to privacy; public disclosure of private facts; commercial appropriation of a name persona or likeness; unauthorized use of advertising ideas; and infringements of copyright, domain name, trade mark, trade name, trade dress, service mark, service name, title, and slogan.

Add Intellectual Property Infringement

Adds coverage for certain intellectual property infringements arising out of technology errors and omissions including infringement, violation, or misappropriation of copyright, domain name, trademark, trade name, trade dress, trade secret, service mark, service name, title, and slogan. Also includes certain plagiarism, piracy, or misappropriation of ideas of a third party.

• $1,000,000 (approximate 25% surcharge)
• $100,000 (approximate 10% surcharge)
• $300,000 (approximate 15% surcharge)
• $500,000 (approximate 20% surcharge)

Add Network Operations Security (Standard)

Adds coverage for certain lawsuits arising from unauthorized use and unauthorized access of the insured's computer system or denial of service attacks.

Add Network Operations Security - (Enhanced) - Funds Transfer - Certain Fraudulent/Criminal Acts (approximate 20% surcharge)

Adds coverage for certain lawsuits arising from unauthorized use or unauthorized access by either an unauthorized or authorized person, denial of service attacks, network operations security for funds transfer, and fraudulent/criminal acts not committed by or with the knowledge of a principal, partner, director, or officer.

Add Defense Outside Limits (approximate 20% surcharge)

Under the regular policy form, the limit of coverage is reduced by both legal defense costs and by settlement amounts or amounts awarded by juries. The Defense Outside Limits endorsement adds an unlimited amount of coverage for legal defense costs so that such amounts do not reduce the limits that are available to pay for settlements or adverse jury verdicts.

Add Worldwide Territory (approximate 15% surcharge)

Under the regular policy form, coverage is provided for covered injuries arising out of or resulting from wrongful acts anywhere in the world, but only if the claim is brought in the US, its territories, possessions, Puerto Rico or Canada. The Worldwide Territory endorsement adds coverage for lawsuits that are filed outside of the US, its territories, possessions, Puerto Rico, of Canada.

Add Wrongful Act Amended (additional charge subject to underwriting)

Under the regular policy form, coverage is provided for wrongful acts while performing technology services "for a fee". The Wrongful Act Amended endorsement adds coverage for certain services provided "without a fee" such as free software downloads posted on a website, free services for a friend, or free services for a VIP client.