Errors and omissions (E & O) insurance protects you from lawsuits that arise when you make professional mistakes. If your professional mistakes harm your customers financially then they may sue your company for those losses. Web designers and developers professional liability insurance is another name for E & O coverage. It is designed to help protect your company legally and financially when lawsuits arise.
If, for example, your company designs a secure shopping website for a large catalog company, they fully expect you to create something that keeps their customer’s credit card information secure. If you or your programmer accidentally forgets to remove a bug tracking backdoor, your customer’s website and application may be hacked into and have information stolen. The customer would sue your company for those losses. Web designers and developers professional liability protects you from allegations of this sort, whether your company is actually at fault for them or not.
Web designers and developers professional liability insurance can pay for your legal expenses and the time you must spend addressing the claims. Options on your policy can also include other benefits such as paying a customer’s settlement or award when needed.