The squeeze on E&O Insurance for technology companies
Most companies that sell technology-based products or services purchase Errors and Omissions (E&O) Insurance to indemnify them from liability caused by the failure of their products or services. When the vendor’s products or services require access to the clients’ confidential information – and especially personally identifiable information (PII) or protected health information (PHI) – the nature and extent of the vendor’s obligations can get more complicated.
The combination of traditional E&O exposures with rapidly evolving privacy/data security exposures has created new insurance coverage and claims-handling uncertainties. As a result, technology companies that handle, store or transmit their clients’ or customers’ sensitive data are increasingly getting squeezed when they buy E&O insurance policies. Read more…
