Lexington Insurance Company, a Chartis company, has launched a technology contract risk policy called Parity to safeguard organisations from potential losses and expenses occurring due the carelessness of a technology professional.
According to the company, the policy is designed to cover business interruption losses, amounts owed to the insured’s clients, costs to correct the error, and if required also provides expenses to engage a new technology vendor to complete the project.
Lexington Insurance Company president David Bresnahan said the technology contracts often limit the contractor’s liability for lost profits and other substantial damages, irrespective of negligence.
"Parity provides protection to purchasers of technology, addressing some of the significant exposures faced by companies looking to upgrade their technology platforms," Bresnahan added.
"Parity helps our insureds to address some of the contractual imbalances inherent in the IT procurement space."
The organisations may suffer losses not recoverable from the professional resulting from a technology professional’s negligence because of a contractual limitation of liability.