Skip to content

Prime Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Why Errors & Omissions/Media & Privacy Coverage

Better Protection for Business Exposure to Growing Risks

In today’s corporate world where the complexity of service, technology, privacy breaches and more puts your business at risk for lawsuit liability, anything can happen.  Errors and Omissions, Media and Privacy Coverage can effectively shield your business from the rising risks you face.

NJ Insurance Claim Scenarios

Errors and Omissions Insurance


M & M Consulting* , a company focused on consulting proficiency, was employed to lower distribution costs associated with a corporation of bakery chain stores. M& M directed the corporation to bake and package their products themselves while outsourcing its delivery to a transporting business. Working side by side with the bakery corporation, M & M succeeded in implementing the changes by the close of the year.  Things, however, did not go exactly as planned and distribution by the transporting company was delayed. This resulted in a fiscal loss for the bakery chain, prompting a negligence lawsuit against the consulting firm. Cost for the M & M defense surpassed $200,000.

Technology Errors and Omissions Insurance


Softwaves* was a software company contracted by a trucking business to devise a program that would guide shipments on a more efficient route. Half a year later, Softwaves still had not completed the program as per the contract’s agreement. The trucking company had no recourse but to hire another programming company to finish the assignment. The trucking company sued Softwaves for $3,000,000 in damages, including the costs incurred to complete the project and regain profit losses. Although Softwaves disputed the amount because it had paid only $650,000 for the program, the jury awarded the trucking company with more than $1,000,000 because of Softwaves’ negligence.

Intellectual Property Insurance


In midst of a telecast sports event, an auto company broadcast a commercial involving a ball stamped with a logo strongly resembling that of a fashion designer. The designer brought a trademark violation lawsuit against the auto company. The jury awarded the fashion designer with $3,200,000.

Personal Injury Insurance


A famous resort issued a tweet about another hotel in regard to bed bugs. The offended hotel filed a liable lawsuit against the creators of the damaging tweet. The jury found the tweet to be false and awarded the plaintiff with $1.25 million for damages.


Network Security and Privacy Liability Insurance

An error by one company’s employee sparked a wide-spread computer virus. This affected about 25% of customers, resulting in rampant data loss and network shutdowns. Affected customers filed a lawsuit against the company for costs involved in restoring data and fiscal loss. The jury awarded the customers with $3,000,000 for incurred damages.

Payment Card Industry Fines and Penalties Insurance


A retail chain company was found to have erroneously transmitted non-encrypted credit card numbers. The payment card processing firm that the chain company used was fined by the credit card companies for a data breach. The payment card processing firm pulled out $100,000 from the chain company’s bank account and also filed a lawsuit against the company for the remaining $500,000.

*Not real name

PRIME Insurance: Providing the Protection You Deserve

PRIME Insurance Agency understands your business risks. Utilizing our extensive network comprised of the leading insurance companies, we search the market to present comprehensive individualized tailored coverage at competitively lowest quotes.

An A++ agency that offers all forms of NJ, NY, PA, MD, TX and other nation-wide coverage, including general liability, auto insurance, homeowners insurance, commercial insurance, umbrella insurance, bond insurance, life insurance and more, we’re the ones over 10,000 satisfied clients rely on.

Become another happy customer by visiting us online at or by calling us at 732-886-5751!

Summary: Today’s corporate world brings many opportunities to succeed. Unfortunately, along with the good come the liability risks!


There are no comments yet.

Leave a Comment

Required fields are marked with


Your name, comment, and URL will appear on this page after it has been reviewed and approved. Your email address will not be published.