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Tech firms, even the most modest of startups, need to be prepared for negligent claims made against them by dissatisfied customers. Indeed, companies will need professional liability insurance should they come under fire for something they have allegedly done wrong. The nature of professional liability is discussed in light of the increasing use of automated systems in vehicles in an article on the Lloyd’s website, dated September 19, 2014. The article muses that thanks to onboard automated systems, liability is sure to swing from the motorist to the creators of the systems in the event of an accident:


“How can you protect a vehicle fully if even the US military computers can be accessed,” asks Peter Shaw, chief executive of Thatcham Research. “You can bet that it will be possible to hack into vehicles and then of course it brings other aspects to mind. How can you avoid the use of vehicles for terrorism purposes for example?

“It will be another one of those product liability issues that has to be considered going forward,” he continues. “What it could lead to, for example, is regular updates of onboard systems when you have your car serviced to defend cars against theft. During normal services they would carry out those upgrades intended to protect the car against known cyber theft.”

Over the next couple of decades as more and more cars on the road have autonomous features the liability is expected to shift from the driver to the manufacturer and software provider.

If a piece of critical hardware malfunctions (such as those found in cars) and the error inadvertently leads to injury or death, it is often enough for customers to make negligent claims against the designers. Such mistakes can be extremely costly for tech companies, and can run businesses to the ground if they fail to handle the situation properly. A well-versed technology insurance company should be able to provide tech firms with reasonable professional liability coverage to deal with such instances.

Professional liability insurance, or errors and omissions insurance, will be incredibly useful for companies that provide tech solutions. This insurance policy protects firms from destructive claims, allowing the companies to save their reputation. It also gives businesses enough time to respond to the allegations, or even the opportunity to settle the matter quietly. Professional liability insurance for small business owners can be found with the help of professional brokers such as

(Source: CAN CARS BE HACKED?,, Sept. 19, 2014)