Technology
Beazley’s A&E policy form covers claims arising out of
negligent acts, errors or omissions in the performance of
professional services. It also covers claims arising out of
computer network security as well as technology based services and
products.
Technology based services
- Requires negligence or unintentional breach
of contract in rendering of technology based services
- Technology based services are defined as
computer and electronic technology services performed by the
Insured for others. Examples include: data processing;
internet services; systems analysis, installation and integration;
programming and support; and network management.
- Realistic applications for A&E
firms:
- Installing programs for operation
of mechanical systems or fire protection systems, or integrating
new systems with existing programs.
- Updating or changing the logic in
connection with new or existing control systems for processing or
manufacturing facilities.
- Outsourcing technical support to
clients for, e.g., start up of operations.
- Key differentiator of Beazley product:
the Technology-Based Services do not have to be part of or
ancillary to traditional professional services. They can be stand
alone services. Most carriers would only cover these services
- if at all – when they are performed as part of a larger, more
traditional A&E firm activity.
Technology products
- Requires negligence or unintentional breach
of contract that results in a failure of a technology product to
perform as intended.
- Technology product is defined as a hardware
or software product developed by the Insured for others or
distributed by the Insured to others.
- Realistic applications for A&E
firms:
- Developing software or
manufacturing hardware for use in operating any building systems,
e.g., mechanical systems, fire protection systems, elevators,
security systems, etc.
- Selling a proprietary design
assist tool (e.g. a three-d modeling program) to other design
professionals or contractors.
- Key differentiator of Beazley
product: like Technology-Based Services, the development or
distribution of the products do not have to be part of or ancillary
to traditional professional services.
Computer network security
- Requires an act, error or omission – no
negligence modifier
- Act, error or omission while providing or
managing computer systems security AND resulting in:
- Inability of authorized third
party to gain access;
- Failure to prevent unauthorized
access, i.e., hackers; or
- Transmission of a virus from the
system to a third party.
- Realistic applications for A&E
firms:
- Hosting of project website – site
goes down and the contractor can’t gain access to critical
information; someone hacks in and changes data; a virus is
transmitted to the contractor.
- Use of BIM or 3D model that
requires access to other project members
- Key differentiator of Beazley product:
does not require a breach of duty in the performance of
professional services. In other words, these are claims of a
type that are not covered by traditional professional liability
insurance.