Key Takeaways
We track down Errors and Omissions (E&O) policies for the majority of the companies we work with. It’s extremely important coverage for anyone leveraging technology or social media, which most startups constantly do. Even using things as simple as AWS or Facebook login can expose your company to a lawsuit, and in a fast-paced, interconnected tech world that simply doesn’t accept any product failure, E&O-related lawsuits happen more than you might think.
Depending on where startups stand with regards to their risk management practices, the time to secure an E&O policy and the pricing of that policy can vary greatly. This is due to the complexities of underwriting companies (like startups) that are usually a hybrid several different tech and non-tech functions. And while startups usually can’t (and shouldn’t) have their own legal department, Chief Security Officer, or accept risk management consultant(s), there are some pretty basic things that can be done to mitigate certain risks and legitimize/secure your company.
That’s why we’ve developed a short but useful Errors and Omissions Risks Checklist that’s catered towards tech startups. You can download it here. The list isn’t supposed to be exhaustive, but it is supposed to give you an idea of practices or policies you may want to change and when you may want to get a second opinion on things (from outside counsel, for example). It touches on contracts, quality control procedures, IP practices, and IT/network security. By reviewing errors and omissions examples, you can better understand the types of risks you face. Limiting your exposure to risk in these areas will make your company stronger and ensure the best possible pricing on an E&O policy.
Go ahead and check it out to see how you’re doing on the E&O risk management front!