Copyright infringement is a common issue in the tech industry. It’s easy to accidentally or unintentionally infringe on a patented technology, and good insurance for this risk exposure can make a big difference.
Let’s say a software developer alleges that your employee customized their product in a way that violates the license agreement and alleges that you committed copyright infringement. The developer sues to collect the money he feels is owed for his patented work. Unfortunately your firm’s professional liability does not extend coverage to infringement of computer code. The claim is denied and you’re left to fight a $500,000 infringement case on your own.
For software developers, electronics manufacturers, and IT service providers, navigating the waters of intellectual property and copyright can be tricky, and you’d want to make sure you have proper insurance to cover you if you have any mis-steps. So take some time to review your E&O insurance policy. A legal expert in your office should be able to pinpoint any relevant policy language or endorsement forms. If doesn’t work, I can help you with a free coverage review.