Lexington Insurance Co. has introduced a technology contract risk policy called Parity. Parity protects organizations from potential losses and expenses resulting from the negligence of a technology professional.
A technology professional’s negligence may result in an organization suffering losses that are not recoverable from that professional because of a contractual limitation of liability. Parity responds by covering business interruption losses, amounts owed to the insured’s clients, costs to correct the error, and expenses to engage a new technology vendor to complete the project, if necessary.
“Technology contracts often limit the contractor’s liability for lost profits and other consequential damages, regardless of negligence,” said David Bresnahan, president of Lexington Insurance Co. “Parity provides protection to purchasers of technology, addressing some of the significant exposures faced by companies looking to upgrade their technology platforms. As its name implies, Parity helps our insureds to address some of the contractual imbalances inherent in the IT procurement space.”