No matter how careful people are, or how advanced technology becomes, people still make mistakes. Unfortunately, heartfelt apologies don’t always satisfy angry clients and customers, leaving no alternative to a lawsuit you now have to deal with. In the case of a lawsuit over a mistake related to technology services, technology errors and omissions (E&O) insurance will protect you and your business.
This is a great question and the answer is simple: only a select few. If you offer a digital platform to provide tele-veterinary services that connect veterinarians with pet owners, you can be exposed to lawsuits as a result of errors or omissions that can cause network security issues that exposed customer data.
We get it – businesses consist of a lot of moving parts that take significant amounts of time to manage all at once. Angry clients may not understand, and a client might sue your business for a mistake that affected them.
In the event, a client holds you liable for some type of loss they experienced, be it financial loss or something else, technology errors & omissions insurance can cover costs that may otherwise break the bank. This type of insurance covers the following:
Most of the time, technology errors and omissions involve incorrectly inputted credit card numbers or client contact information. For example, you certainly have a problem if you or an employee mistakenly charged the wrong card.
Network security is another important area covered by technology E&O insurance. Though it may not seem like your fault, a client can hold you liable in the event of a data breach where a malignant party stole and used the personal information of your clients. This situation can fall under negligence if a client claims you did not adequately protect their information.
Some companies offer insurance protection under two separate policies for errors and omissions-related incidents. For example, in the event of a data breach, general liability insurers may cover you under a separate third-party cyber liability insurance policy.
You have a responsibility to protect the personal information of your clients, so we also recommend proactively implementing policies to do so. A wide variety of technology companies offer tools that can help prevent you from becoming the victim of a cyber attack. With this in mind, not every professional liability case looks the same. Our team at Vetinsure is always ready to be a resource for you. Just give us a call at 800-272-1249.