Chubb Launches New 'Scalable' Errors & Omissions Insurance for High-Tech Industry
WARREN, NJ - The Chubb Group of Insurance Companies has launched a new errors and omissions (E&O) liability insurance policy that can be tailored to meet the needs of small- to large-sized information and network technology companies. INTegrity by Chubb helps protect high-tech companies against the legal expenses and monetary damages of an E&O lawsuit alleging the failure of a product to perform its function or the high-tech firm's failure to perform services within the terms of the contract. This new product replaces Chubb's previous "one-size-fits-all" errors and omissions insurance. "With claims severity for technology product and project errors or omissions litigation increasing by five-fold over the past few years, high-tech firms are facing greater risks than ever, especially when it comes to product and service performance," said Timothy Ehrhart, vice president, Chubb & Son, and global errors & omissions product line manager, Chubb Commercial Insurance. "The stakes in technology E&O claims are high and many companies are not in a position to withstand the financial impact of technology E&O lawsuits. While the loss of reputation that an information and network technology company could suffer is largely indeterminable, its financial loss from a lawsuit can be minimized through E&O insurance." INTegrity by Chubb offers three levels of protection - Value, Standard and Premier - to allow companies to purchase the level of insurance they desire. Depending upon the level of E&O insurance desired, the following options are available: -Definition of Loss - Most E&O policies apply only to consequential damages (i.e., the customer's loss of income due to product failure). INTegrity's Premier policy offers high-tech firms additional insurance that will respond to claims from a firm's customers seeking the return of amounts paid to the high-tech firm for its product or service. -Final Acceptance Criteria - Typical E&O policies apply only to losses that arise after acceptance of the product or project by the high-tech firm's customer. INTegrity's Standard and Premier policies offer high-tech firms additional insurance for losses realized by the customer prior to acceptance of the firm's product or service. -Privacy Violation Risk - High-tech firms can be sued by their customers if a deficiency in the firm's product or service could enable others to gain unauthorized access to personal, nonpublic information, such as financial or health records, risking personal/reputational injury to others. This option allows the insured to purchase liability protection against claims by their customers alleging that they lost revenue because of concerns that a deficiency in the high-tech firm's product or service could cause a violation of the privacy of third parties. This option is available with INTegrity Value, Standard and Premier policies. -Intellectual Property Infringement Risk - A deficiency in the high-tech firm's product or service might enable others to gain unauthorized access to intellectual property, such as a customer's trade secrets. This option allows the firm to purchase protection against claims alleging that a deficiency in its product or service could enable others to misappropriate and subsequently infringe upon the intellectual property of third parties. This option is available with INTegrity Value, Standard and Premier policies. -Security Breach By Others - A deficiency in the high-tech firm's product or service might enable others to gain unauthorized access to or use of a customer's computer or network, causing lost revenue to the customer. This option allows the high-tech firm to purchase added insurance protection against claims by third parties alleging lost revenue because a deficiency in the firm's product or service could cause or has caused an unauthorized access or use by others. This option is available with INTegrity Value, Standard and Premier policies. "INTegrity by Chubbsm offers high-tech firms a way to better manage their E&O exposures by providing scalable insurance protection that meets each company's budget and unique needs - from a start-up to a more well-established company," said Ehrhart. Chubb is a leading insurer of the technology industry and has been providing specialized insurance solutions and risk management to the industry for more than 20 years. The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 5,000 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.