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Professional Liability for Hosting Companies and ISPs

Why Professional Liability Insurance is Crucial

Professional Liability Insurance, also known as Errors & Omissions (E&O) Insurance, protects hosting professionals against claims of negligence, mistakes, or failure to deliver services as promised. This insurance specifically covers financial losses due to errors or omissions in your professional services, unlike general liability insurance which covers physical injuries and property damage.

Often a contract or service agreement will require Tech E&O but it is also a coverage that is overlooked.

Risks Faced by Hosting Professionals

  1. Managed Service Provider: Failing to manage IT services effectively can lead to significant downtime and client losses.
  2. Network Cabling/Wiring: Improper installation can result in network failures and costly repairs.
  3. Network/Computer Security: Inadequate security measures can lead to breaches, exposing client data.
  4. Network Architecture/Design: Poor network design can cause operational inefficiencies.
  5. Software-as-a-Service (SaaS): Service disruptions or software flaws can impact client businesses.
  6. System/Network Evaluation: Incorrect evaluations can lead to misguided investments by clients.
  7. Technical Project Management: Mismanagement can result in project delays and financial penalties.
  8. Telecommunications: Faulty communication setups can disrupt client operations.
  9. Web Analytics: Inaccurate data analysis can lead to poor business decisions for clients.
  10. Website Development: Bugs and functional issues in developed websites can harm client businesses.
  11. Wireless Installation/Configuration: Improper installations can result in connectivity issues.

How Professional Liability Insurance Protects You

E&O insurance protects you against claims of negligence or mistakes, covering legal fees, settlements, and judgments, which can otherwise be financially devastating.

Real-World Scenarios

A Managed Service Provider might face a lawsuit if a client’s network goes down due to mismanagement, resulting in significant business interruptions. E&O insurance would cover legal costs and settlements.

A Web Developer might deliver a website that fails to meet client expectations, leading to loss of business for the client. Professional Liability Insurance ensures protection against such claims.


For hosting professionals, E&O insurance is essential to operate without the fear of litigation. It provides a safety net, allowing you to deliver innovative services confidently.

Contact us to learn how we can customize Professional Liability Insurance for your hosting business, ensuring your financial security and peace of mind.

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Advance Insurance & Benefits is here and ready to make the process as painless as possible. We look forward to meeting you!

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