What does Data Processors Errors and Omissions Coverage mean? Read on to discover the definition & meaning of the term Data Processors Errors and Omissions Coverage - to help you better understand the language used in insurance policies.
Data Processors Errors and Omissions Coverage
Insures liability arising from errors and omissions in performing data processing for outside entities on a fee basis. Coverage is usually on a claims-made form. The policy provides no coverage for bodily injury (BI) or property damage (PD) liability, which can create a coverage gap for certain data processing applications for example, in medical analysis whereby an error in a diagnostic computer program causes BI. Further, when one organization provides services for sister companies or its own subsidiaries, coverage would not normally apply to errors and omissions (E&O) claims by these companies or subsidiaries.
We hope the you have a better understanding of the meaning of Data Processors Errors and Omissions Coverage.