If you are an IT professional and wonder why you need technology liability insurance, when you already have business or commercial general insurance, you have paid for exists, then there are few things the latter never covers. Specialized insurance for IT Professionals exists, you just need to get it from an insurance agency that understands the risks involved in your IT related job. The IT technology insurance or the professional liability insurance is the tool that covers the negligence, regardless of being intentional or not, in the services you offer to your clients and customers. The professional services that related to software components, hardware components, IT consulting, research and development of various new technologies or the ones that are emerging, are sued for overlooking errors. The insurance for tech is to cover any cost occurring because of the legal suits filed, and that is the reason; the insurance is also termed as the errors and omission insurance.
Most of the technology insurance policies cover the professional services that include all IT-related areas, and even few Non-IT areas like interior design, architecture, engineering. You can also come across policies that cover environmental consulting and management of constructions as professional services. In short, you can define the professional liability insurance as the one which covers indemnification. Any agreement between you and the client signed, has a complete sketch of the services you offer to the client and additionally few words included that when a breach of contract happens, you would be held responsible. This means when you fail to render the promised service, even if you are not at the fault, you would face legal suits. When you have insurance for tech, the contract or agreement, the insurance agents review the agreement for free.
You should know few things about the technology liability insurance, and important one is the retroactive date. The retroactive date of the insurance policy is not as important, but the date the policy has begun or purchased by the company is. This date is vital as the coverage starts from the retroactive date. The insurance company covers no claims before the retroactive date mentioned in the policy. Check if your policy is fully retroactive or if date restrictions are mentioned. Speak to your insurance agent and make sure you are adequately covered by the tech insurance policy. You lose the retroactive date when there is a lapse in the insurance.
The technology insurance policy has some exclusions, and these are listed in your policy. Understanding these exclusions of the insurance for techs is necessary because your claims may be denied. Any claim that is prior to the retroactive date is denied. Any claim that the insured has knowledge before the policy had been effective is not paid. The time frame of the claim is also important, as claims that are not filed on the specified time frame are denied. You need to mention the name of the organization against which you are to be paid, and failure of which leads to denial of the claims. The professional liability policy covers only professional service’s performances. Any fraudulent acts, intentional acts, poor workmanship, dispute of payments and anything that is non-professional, is denied by the professional liability insurance company.