Tech PI - Osiguranje profesionalne odgovornosti za tehnološke kompanije

Tech PI – Professional Liability Insurance for Technology Companies

Tech PI insurance, also know as Errors & omissions (E&O) insurance or technology professional liability insurance , is a type of insurance that provides coverage for technology professionals, most often IT companies, who may face lawsuits due to negligence or other mistakes in the course of their work. This coverage can protect businesses and individuals against losses resulting from lawsuits and other claims arising from alleged professional errors or omissions.

In recent years, the demand for technology professional liability insurance has grown rapidly as the IT industry grows, becoming more complex and the potential for errors and omissions increases. Below, we’ll briefly outline the basics of Tech PI insurance, including what it covers, who needs it, and how to get one.

What is Technology Professional Liability Insurance?

Tech PI insurance is a specialised form of professional liability insurance. It is designed to protect technology professionals. This insurance provides coverage against lawsuits and other legal claims arising from errors or omissions in their work. This coverage is important because technology professionals are often involved in complex, high-stakes projects in which mistakes can be costly.

Technology professional liability insurance can provide coverage for a wide range of claims, including:

  • Inattention
  • Intellectual property infringement
  • Misrepresentation
  • Failure to deliver services as promised
  • Errors or omissions in professional advice or services
  • Breach of contract
  • Loss of or damage to documents

For example, if a software developer creates a program for a client that contains an error that causes significant loss to the client, the client can sue the developer for negligence. Technology professional liability insurance could provide coverage for the developer’s legal defence and any damages awarded to the client.

Tech PI - Osiguranje profesionalne odgovornosti za tehnološke kompanije

Who Needs Tech PI Insurance?

Technology professional liability insurance is recommended for any business or individual that provides technology-related services or advice, including:

  • Software developers
  • IT consultants
  • Web developers
  • Data analysts
  • Cloud service providers
  • Information security experts
  • Social media consultants
  • Hardware manufacturers
  • Telecommunication services providers
  • Artificial intelligence experts

In general, if you or your business provide any type of technology-related services or advice, you should consider technology professional liability insurance. This coverage can help protect you from potentially catastrophic financial consequences.

Advantages of Tech PI Insurance

There are several benefits of technology errors & omissions insurance, including:

  1. Financial protection: technology errors & omissions insurance can provide coverage for legal defence costs and damages awarded to the plaintiff in case of a lawsuit or other legal claim.
  2. Professional credibility: technology errors & omissions insurance can show clients that you take your professional responsibilities seriously and are committed to protecting their interests.
  3. Peace of mind: knowing that you are protected in the event of a lawsuit or other legal claim can help you focus on your work and run your business with confidence.
  4. Competitive advantage: Insurance for technology companies can help you stand out from the competition and win more business.
  5. Compatibility: Some clients may require you to have this type of insurance to work with them. This coverage can help you meet their requirements and attract more business.

Tech PI - Osiguranje profesionalne odgovornosti za tehnološke kompanije

How to Contract Tech PI Insurance

Contracting insurance for technology companies is a process that usually includes the following steps:

  1. Assess your needs: Determine the level of coverage and amount of insurance you need based on the nature of your business and the types of services you provide. Also consider the potential risks you face and the scope of the contract you are entering into
  2. Explore the market: Research offers from several insurance companies and compare their offers to find the policy that best fits your needs and budget.
  3. Request for an insurance offer: Once you’ve identified insurers that provide insurance for technology companies, submit an application for insurance and a quote. This usually involves completing a questionnaire and providing information about your business, services and risk profile.
  4. Insurance: The insurance company will evaluate your application and determine the level of risk associated with your business. This usually includes a review of your business and financial records, previous engagements, past claims history, etc.

You can leave us to deal with contracting a policy and choosing the best insurance coverage for you and your company. The team of professionals of the insurance broker Eurosolutions Ltd. will facilitate the entire process and provide you with the right advice and the most competitive insurance offer tailored to your needs.