New Requirements for Tech Companies
New Requirements for Tech Companies
Many challenges
are frequently faced when dealing with technology projects.
They may:
- ·
Go
over budget - ·
Take
extra time - ·
Go
off track - ·
Defects - ·
Strikes
An errors
and omissions (E&O) policy protects technology companies in case of
defects, inadequacies with their products and services, or deficiencies. Large
technology companies have often purchased a global E&O policy issued in the
United States to provide them with multinational insurance protection.
This has started to change, however! Customers are increasingly requiring
their technology vendors to buy admitted insurance in local
markets along with a controlled master policy. This way of doing
business had been standard practice in the commercial property and general
liability insurance marketplace for some time and is emerging practice in the
directors & offivers (D&O) marketplace.
*Need for locally admitted insurance
is a new development in the E&O market!
Technology
companies need admitted policies from locally licensed insurers as well as a
controlled master policy, which would provide difference in conditions (DIC)
and difference in limits (DIL) insurance, all coordinated out of one location
