Denial of Technology Errors and Omissions Insurance Claims
It's a high tech firm's worst nightmare: The product you designed, built and sold suddenly isn't performing as it should. Your customers' businesses grind to a halt because your product isn't working. First, they call you, demanding a prompt fix. Next, they call their attorneys to begin legal proceedings against you.
This is why companies that produce high-tech hardware and software purchase technology errors and omissions insurance, sometimes called performance insurance. If the worst-case scenario comes true, they'll be covered.
Technology errors and omissions insurance provides coverage for costs associated with the malfunction of a policyholder's product, from the cost of fixing the error and replacing the product to the lost business customers experience because of the product's failure.
The Worst-Case Scenario
After a product malfunctions, many high-tech firms find that the worst-case scenario isn't the product failure itself but their insurance company's failure to defend them from lawsuits or cover their technology errors and omissions claims.
At Pillsbury & Levinson, LLP, our attorneys are experienced in representing high-tech companies, including many Silicon Valley firms, whose insurance carriers fail to fulfill the terms of their technology errors and omissions policy.
In every technology errors and omissions case, we make an in-depth study of our client's business so we understand the product, the technology and the company's role in the industry. We learn about the end user and help clients address their customers' problem.
Keeping Your Options Open
We use our knowledge of insurance law to find creative solutions that will help minimize our client's liability while preserving their insurance coverage. For example, most technology errors and omissions policies exclude coverage for recalled products. In one case involving a malfunctioning product, we structured a product exchange that allowed our client to correct a problem quickly in a way that their insurance policy would cover.
To meet the needs of today's fast-paced, high-tech firms, our lawyers have made new law and expanded the rights of policyholders. To learn if we can be of assistance when your business is facing a crisis, please contact Pillsbury & Levinson, LLP in San Francisco, California, today.