In the complex and highly competitive technology sector, even small companies can face significant lawsuits for mistakes that may happen when they provide services to clients.
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For businesses that require greater protection against this risk, The Hartford Financial Services Group, Inc. (NYSE: HIG) announces that its member companies have expanded the policy limits available to customers from $1 million to $2 million on The Hartford's FailSafe(R) MEGA product, a professional liability coverage designed specifically for smaller technology firms and offered through the company's Technology Practice Group.
Professional liability insurance, also known as errors and omissions (E&O) coverage, is similar to malpractice insurance, and protects business professionals from liability when an action -- or failure to take action -- results in financial damage to a client. This coverage is not typically included in a standard business owner's policy, which is why companies should always consult an agent or broker to discuss their potential risks and insurance needs.
For example, in the technology industry, E&O coverage helps protect against many situations that can lead to litigation, such as when a firm or its employees are held responsible for programming errors, faulty software performance or system crashes. E&O insurance not only covers financial damage, but also the payment of claims expenses which can include attorney's fees and related litigation expenses.
"In today's business environment, it's not just the big tech players who face this risk," said Michael Dandini, vice president of The Hartford's Technology Practice Group. "In fact, we've noticed that a growing number of smaller firms are on the receiving end of lawsuits that relate to their work. Often, their interests would be better served with a greater amount of coverage for potential errors and omissions."
Led by a team of experienced insurance professionals, The Hartford's Technology Practice Group helps agents and brokers serve all types of technology clients, from start-ups to established market leaders. With its underwriting, claim, product and risk management experts, the group provides specialized tools and expertise and leverages The Hartford's leading line of insurance products, including the FailSafe(R) MEGA E&O coverage.
When purchased with the The Hartford's popular Spectrum business owners' policy, FailSafe(R) MEGA creates a single and affordable insurance solution that can help meet the growing needs of smaller tech firms. Along with its new $2 million limit capacity, key features include:
* A broad definition of covered technology services.
* A universal coverage territory.
* Built-in coverage for independent contractors and clients in the event they are sued because of a glitch in an insured's technology services.
* Affordable minimum premiums starting as low as $800 and minimum self- insured retentions as low as $2,500. (Retention refers to the amount of money a policyholder must pay for covered damages and/or claim expenses in connection with each covered event before this insurance begins to pay).
FailSafe(R) MEGA is one of three offerings in The Hartford's FailSafe(R) suite of professional liability products, which are designed specifically for technology businesses. For technology companies with more-complex needs, The Hartford offers its stand alone GIGA and TERA products which provide additional coverage features.
"Our products and services can meet the needs of all types of technology businesses," added Dandini. "Plus, we're focused exclusively on technology, which can help agents and brokers better serve clients in this large and ever-changing industry."
For further information, technology companies should contact their brokers or an independent agent that represents The Hartford. Coverage is provided by The Hartford and may not be available in all states. Please refer to the policy to determine the exact terms, conditions, exclusions and limitations of coverage.
The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2005 revenues of $27.1 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford's Internet address is http://www.thehartford.com.
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2005 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.