As “project owners” hire technology professionals to perform the work, they are often forced to take on additional risk. In the event of a technology professional’s negligence, owners of technology projects may suffer losses not recoverable from that professional because of a contractual limitation of liability. This can leave the project owner with no recourse for lost profits or potential exposure to third party liability, as well as additional expenses including the costs to hire a new vendor to complete the project.
Lexington now provides a solution for this exposure with its Technology Contract Risk Policy. Coverage is three-fold:
1) Parity covers purchasers of technology projects for business interruption losses they sustain resulting from the negligence of the technology professional. Up to $5 million in coverage is available.
2) Parity also covers the insured for liability to third parties resulting from the insured’s inability to fulfill its obligations to such parties resulting from the negligence of the technology professional. Limits up to $1 million are available.
3) Lastly, Parity covers specified costs associated with obtaining a replacement technology professional in such instances. Up to $500,000 is available for these expenses.
For more information, please contact Christian Andrews at (617) 330-8469 or christian.andrews@chartisinsurance.com, Jill Salmon at (646) 857-1425 or jill.salmon@chartisinsurance.com, or visit www.lexingtoninsurance.com.