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
which can create a coverage gap for certain data processing applications—for
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.