Performance Anxiety: Electronic Products Errors & Omissions Coverage
An automated system malfunction or shutdown can have potentially significant effects on business operations. The insurance industry has responded to the need for insurance coverage for purely economic loss liability claims by tailoring an errors and omissions (E&O) liability insurance policy form for the electronic products and services arena. Some of the companies underwriting E&O liability insurance for the electronics industry include St. Paul Fire and Marine, Reliance and Reliance National, Royal Insurance Co. and Royal Indemnity, and a group of Chubb companies. Electronic products E&O insurance is written on a claims-made basis.
Kerr, Dana A., 1997, “Performance Anxiety: Electronic Products Errors & Omissions Coverage,” Risk Management, 44(10): 22-27.