8 Tech E&O Claims Examples

The rapid growth and integration of technology in the business world have made it an essential component of modern-day operations. The reliance on technology has led to an increase in productivity and efficiency, but it is not without its own set of risks. Technical failures, errors and omissions can occur, causing significant damage to a company's reputation and finances. To mitigate these risks, tech errors and omissions (E&O) insurance is crucial, providing coverage against claims arising from tech failures.

Read more
Get ₹10 Lac Cover starting at ₹873*

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from top insurers

Get ₹1 crore insurance cover starting at ₹2,500/year+

Step 1/2

Get ₹1 crore insurance cover starting at ₹2,500/year+

You are -
secure-icon We don't spam
Get Updates on WhatsApp
Check Your Premium Now
By clicking on "" you agree to our Privacy Policy and Terms Of Use

Get ₹1 crore insurance cover starting at ₹2,500/year+

Step 2/2
Get Updates on WhatsApp
Fast-track your search with instant quotes from top insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Data Loss Claims

Data loss claims are one of the most common in the tech industry and can have severe consequences for a company. Data loss refers to the loss, theft, or damage of sensitive information, which can result in loss of reputation, legal issues, and financial losses. The 2017 Equifax data breach is a well-known example of a data loss E&O claim, where the personal information of millions of customers was compromised. This resulted in a loss of reputation and legal consequences for the company.

Cyber Liability Claims

Cyber liability claims arise from cyber attacks, resulting in damage to a company's computer systems and loss of sensitive information. This can include hacking, identity theft, viruses, and other cyber threats. The 2013 Target data breach is a high-profile example of a cyber liability E&O claim, where the payment information of 40 million customers was compromised. This resulted in a significant loss of reputation and financial consequences for the company.

IT Consultant Claims

IT consultants are hired to provide expert advice and manage projects, but errors and omissions (E&O) can occur, leading to legal and financial consequences. IT consultants can be held liable for issues such as miscommunication, poor project management, and incorrect advice. The Australian government was sued by an IT consultant in 2017 for over $30 million, due to the failure of a major IT project. This highlights the importance of having a tech E&O insurance policy in place to protect against potential E&O claims from IT consultants.

Software Development Claims

Software development can be a complex process and claims can arise from issues such as bugs, security breaches, and non-delivery of software. Software developers can be held liable for these E&O claims, leading to legal and financial consequences. The 2000 lawsuit against Microsoft is a well-known example of software development E&O claims, due to the widespread bug in the Windows operating system. This highlights the importance of having proper quality assurance measures in place to avoid potential E&O claims.

Website Development Claims

Website development is another area where E&O claims can arise, due to issues such as website downtime, slow loading times, and incorrect design. These claims can result in loss of reputation and financial losses for the company. The 2019 London Stock Exchange's website outage is a well-known example of a website development E&O claim, causing a loss of reputation and financial losses for the company. This highlights the importance of having proper website development processes in place to avoid potential E&O claims.

IT Outsourcing Claims

IT outsourcing involves hiring a third-party to handle IT tasks, and claims can arise from issues such as failure to meet service level agreements, incorrect advice, and security breaches. A major US retailer was sued by an IT outsourcing company in 2018 for over $50 million, due to the failure to meet service level agreements. This highlights the importance of having proper IT outsourcing processes in place to avoid potential claims.

Mobile App Development Claims

Mobile app development is a rapidly growing industry, and claims can arise from issues such as incorrect coding, security breaches, and non-delivery of apps. The 2018 lawsuit against the popular fitness app Strava is a well-known example of mobile app development claims, due to security breaches compromising the privacy of its users. This highlights the importance of having proper security measures.

Cloud Computing Claims

Cloud computing involves using remote servers to store and process data, and claims can arise from issues such as data breaches, data loss, and downtime. One well-known example is the Amazon Web Services outage in 2017, causing major downtime for websites and services that rely on the cloud.

Conclusion

Technology plays a critical role in modern day business operations, but it is not without its own set of risks. From data loss claims to mobile app development claims, companies can be exposed to a range of legal and financial consequences. It is essential for companies to take the necessary measures to mitigate these risks, including the implementation of proper quality assurance measures, security protocols and having a tech E&O insurance policy in place. Having a tech E&O insurance policy provides peace of mind, knowing that in the event of a tech failure or E&O claim, legal or financial consequences can be mitigated. Companies should not underestimate the importance of tech E&O insurance and should consider it as a necessary component of their risk management strategy.E&O claims can have a significant impact on a company, leading to financial losses, legal issues, and loss of reputation. It is important for companies to understand these risks and take appropriate measures to protect themselves. Having a tech E&O insurance policy in place can provide peace of mind, knowing that they are protected against potential claims.

Written By: PolicyBazaar - Updated: 14 February 2023
Professional Indemnity Insurance Companies
Professional Indemnity Insurance Articles
A doctor performs several risk-associated tasks. He needs to cure different kinds of diseases affecting patients...Read more
27 Apr 2023 by Policybazaar 2148 Views
Professionals such as lawyers, chartered accountants, doctors, engineers, etc. are susceptible to several kinds of...Read more
29 May 2023 by Policybazaar 1079 Views
For a professional, regardless of expertise or knowledge, mistakes can still be inevitable. A single mistake can...Read more
15 Nov 2022 by Policybazaar 1845 Views
Becoming a doctor in India is not just about prestige and earning respect. It also means taking on the important...Read more
31 Oct 2023 by Policybazaar 113 Views
To become a doctor, you have to devote years to studying and training. However, sometimes despite the best...Read more
10 Mar 2023 by Policybazaar 463 Views
Selecting the appropriate Doctors Professional Liability...Read more
23 Nov 2023 by Policybazaar 30 Views
Pediatricians play a critical role in ensuring the health and...Read more
22 Nov 2023 by Policybazaar 19 Views
Plastic surgeons strive to enhance beauty, restore confidence...Read more
22 Nov 2023 by Policybazaar 20 Views
Becoming an Anesthesiologist is a significant achievement. They...Read more
07 Nov 2023 by Policybazaar 55 Views
The Healthcare Professionals Registry is a complete list of all...Read more
07 Nov 2023 by Policybazaar 58 Views
Policybazaar for Business - Professional Indemnity Insurance - Customer Reviews
View all
4/5
Based on 21 reviews
4
out of 5
Based on 21 reviews
0 users
15 users
6 users
0 users
0 users
4.5 April 24, 2023
Harshit
Helpful Purchase
Profesiona Indemnity Insurance has been a game-changer for my consultancy business. It has given me the confidence to take on new projects and expand my services, knowing that I have robust coverage in place.PolicyBazaar has been fantastic in answering my questions and tailoring the policy to my specific needs.Thanks PolicyBazaar.
Pune
3.5 April 12, 2023
Bhavesh
Amazing Deals
I recently purchased Professional Indeminty Insurance from PolicyBazaar and the claims process is smooth, and has always been prompt in resolving any issues or concerns I've had. I appreciate the reliability and professionalism they exhibit.
Howrah
3.8 March 31, 2023
Bhuvan
Online Purchasing
Profesional Indemnity Insurance has been a lifesaver for my business. It offers comprehensive protection against any claims that may arise from errors or negligence on my part. The claims process was straightforward, and they handled everything efficiently. I highly value the peace of mind this insurance provides and would recommend it to any professional.
Madurai
4.3 March 13, 2023
Atif
Impressive Features
I had an excellent experience while buying Personal Indemnity Insurance. It was quick and easy to get a quote online and the premiums were quite affordable. The policy covers all the essential aspects, and the customer service team was responsive and supportive. I feel much more confident in my work knowing that I have this coverage
Agra
3.8 March 01, 2023
Tejas
Helped To Secure Confidential Data Of Company
As a Owner I had a high risk of loss of confidential data. Then my colleague suggested me go for PI Insurance at PolicyBazaar. So I visited their website and contacted the team. They answered all my queries, and when I got satisfied with the plan, I made a purchase. Thanks, PolicyBazaar.
Nashik
4.3 February 17, 2023
Ankita
Covers Legal Expenses
There was a party that made a claim against us for professional negligence by one of our employees. Thanks to PolicyBazaar which helped me protect our financial position and helped us during the claim process that covered our Legal expenses and Settlement cost. Highly Recommend this.
Allahabad
4.3 February 05, 2023
Monika
Covers The Risks
I bought Professional Indemnity Insurance from PolicyBazaar, as I was looking for insurance that could mitigate my risk associated with several professional services. Thanks to PolicyBazaar. It was worth buying. Highly Recommend it.
Jamshedpur
4.3 January 24, 2023
Riya
Helps Me To Focus On My Work
I was always concerned about my organization in order to safeguard against potential liabilities and unforeseen circumstances that could arise from professional negligence. So I bought PI Insurance at Policybazaar and found it good as it helped me to focus on my work without worrying about financial repercussions. So thanks to PolicyBazaar.
Vadodara
3.8 January 08, 2023
Shreya
Amazing Deals
I bought Professional Indemnity Insurance from the PolicyBazaar website and found it suitable for my business. I run a small company. I got terrific Deals at PolicyBazaar. It was an excellent Purchase. Thankyou PolicyBazaar.
Ludhiana
4.3 December 14, 2022
Doctor Vishal
Covers Professional Negligence
As a Doctor, I was searching for Professional Indemnity Insurance that could provide me coverage against claims for Negligence in my services. Then I visit PolicyBazaar Website. There I came across several benefits. So I made the purchase there. Thanks, PolicyBazaar.
Kochi