When Technology Fails
As the role technology plays in our personal and business lives evolves, so, too, does the liability risk to those individuals and companies that create, design, implement, and service the technology that we rely so heavily on.
Insurers that underwrite the technology risk and the claims professionals who mitigate losses arising therefrom should work together to keep close track of numerous issues with technology-related errors and omissions (E&O). This article is meant to provide a framework for insurers to do so.
The liability risks for technology professionals are different than the risks for other professional services for numerous reasons. As an initial matter, technology products and services encompass such a wide array of areas.
Technology policyholders can include software developers, engineers, managed services providers, data hosting platforms, SaaS products, telecommunication providers, security service providers, and many other products and services involving digital information.
One unique risk to technology professionals is the tremendous downstream risk associated with an insured’s third-party clients.