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 or property damage liability
which can create a coverage gap for certain data processing applications, e.g.,
in medical analysis whereby an error in a diagnostic computer program causes
bodily injury. Further, when one organization provides services for sister companies
or its own subsidiaries, coverage would not normally apply to errors and omissions
claims by these companies or subsidiaries.