TechInsurance Releases Checklist of Must-Review Items for IT Errors & Omissions Insurance Policies

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Small businesses must review E&O insurance policies regularly as business changes, adapts, and grows

Errors and Omissions Insurance for technology firms is not standardized. The options, riders, features, and exclusions can vary widely from carrier to carrier and even among policies offered by a single insurance company.

But most small-business owners simply don’t have time to comb through the fine print of their policies. To help them more quickly determine whether their insurance adequately protects against the risks their businesses face, TechInsurance, the nation’s leading online insurance provider for small Information Technology businesses, today issued a checklist that outlines the most frequent inclusions and exclusions in Errors and Omissions policies written for tech companies.

“When an insurance company denies coverage for an E&O claim, insurance agents are as devastated as the business owners we work with,” said Ted Devine, CEO of TechInsurance. “That’s why we work so hard to help our clients understand from the start which events their policies cover and which events they exclude. We also encourage our customers to review their policies with us every time they add a new service or otherwise change their business, to make sure they’ll have coverage if and when they need it.”

TechInsurance recommends that small-business owners check their Errors & Omissions (also called Professional Liability) policies for the following inclusions and exclusions in relation to their business needs:

  •     International clients or international courts: In today’s economy, more firms are working with clients and partners overseas, particularly in the IT field. If a client suffers a financial loss and initiates a lawsuit, the jurisdiction they choose may affect whether the damages are covered by the defendant’s insurance. Policies that only cover suits in domestic courts will not offer coverage for the legal costs associated with international claims.
  •     Independent contractors’ work: Small businesses frequently rely on a network of independent contractors for services that complement their expertise. And while some Errors & Omissions policies include 1099 contractors in their coverage, others do not. In the latter instance, contractors must carry coverage independently. Business owners should be diligent about verifying their contractors’ coverage.
  •     Intellectual property: If an IT business deals with different software licenses or outside intellectual property (IP), the business’s E and O policy should address what happens in the event that the company is accused of violating that IP.
  •     Physical damage to clients’ hardware: During a software installation or repair, equipment (including a computer or server) can potentially be damaged. In E&O policies, physical damage is always listed separately from non-tangible damage to software or a network. This means that IT businesses that work with both tangible and non-tangible property should verify that their E&O policy covers damages to both.

Devine notes that proper E&O Insurance coverage provides protection not only for any judgments or settlements a business is found liable for paying, but also for any expenses incurred while defending itself against the claim. “Even if a business isn’t ultimately found liable, the costs of providing a legal defense can be considerable. That’s one reason insurance is so important – it prevents frivolous claims from wreaking financial havoc on a small business,” he said.

TechInsurance gives small and micro businesses access to the nation’s most respected, A-rated business insurance carriers as well as industry-trained licensed insurance agents experienced in identifying the insurance products that meet their unique needs. To request a fast and accurate quote or speak with an agent, please visit

About TechInsurance
TechInsurance is a web-based agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their Commercial Property Insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 51,000 businesses insured since 1997, the company has grown to become America's leading online provider of business and professional insurance for computer consulting and web services companies, as well as other IT service businesses. For information, visit

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