The bad release
An update to your platform corrupts a customer's records and halts their billing for several days. They claim lost revenue and recovery costs.
Tech E&O can pay for your defense and the customer's covered financial loss.
Professional & Technology Liability
Technology E&O, written for what you build and support.
Technology errors and omissions (tech E&O) insurance protects software, SaaS, IT and tech-enabled companies when a client says your product or service failed, didn't perform as promised, or caused them a financial loss.
What tech E&O insurance covers.
It's a different product from general professional liability. Tech E&O is written around technology products as well as services, and it's built for the claims tech companies actually see: outages, bugs, failed implementations, missed specifications, lost client data and allegations that you breached the contract.
Forms vary more than most buyers expect. Some exclude delays or breach of contract, some only cover the products you listed at renewal, and many come packaged with cyber coverage under one policy. Those details decide whether a claim is covered, so we compare the wording, not just the limit.
- Technology products and servicesClaims that your software, platform, hardware or technology services failed, had errors, or didn't perform as intended, including defense, settlements and judgments.
- Breach of contract allegationsClaims framed as breach of contract or failure to deliver, which many tech E&O forms address when the underlying issue is an error or failure in your work.
- Outages, downtime and lost dataA client's financial loss from service interruptions or data lost or corrupted because of your product or service.
- Network security and privacy liabilityClient claims that a security failure in your product or service exposed their data, often included or packaged with cyber coverage.
- Media and IP (where included)Some forms add coverage for copyright, trademark and content claims. Patent infringement is typically excluded.
- Defense costsLegal defense, even when the claim has no merit. On most tech E&O policies, defense costs reduce the limit.
What it typically doesn’t cover
- Your own breach costsForensics, notification, ransomware and your own downtime are first-party cyber coverages. Cyber Liability Insurance
- Patent infringementTypically excluded. Specialty IP coverage addresses it. Intellectual Property (IP) Infringement Insurance
- Bodily injury and property damageThese are typically general liability claims. General Liability & Products Liability Insurance
- Guarantees, warranties and refundsPromises beyond reasonable professional care, and returning fees you were paid, are commonly excluded or limited.
- Delays and products added mid-termSome forms exclude delay or only cover products and services listed on the application.
- Known claims and intentional actsIssues you knew about before the policy began, and deliberate or dishonest conduct, are excluded.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The implementation that missed
An ERP integration you delivered doesn't meet the agreed specifications, and the client sues for breach of contract and the cost of hiring a replacement firm.
Tech E&O can respond, depending on how the form treats contract claims and refunds of your fees.
The exposed client data
A misconfiguration in a system you manage exposes a client's customer data, and the client seeks its notification and response costs from you.
Network security liability can respond to the client's claim. Your own response costs need cyber coverage.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Intellectual Property (IP) Infringement InsuranceProtection against certain claims involving patent, trademark and copyright infringement.Directors & Officers (D&O) InsuranceProtects company leaders and the organization against claims alleging wrongful management decisions or actions.Professional Liability / E&O InsuranceClaims alleging that your professional advice, services or work caused a financial loss.Questions
Common questions about tech E&O insurance, answered.
What's the difference between tech E&O and cyber insurance?
Tech E&O covers claims from clients that your technology product or service failed and cost them money. Cyber insurance mainly covers your own losses from a breach or attack, like forensics, notification, ransomware and downtime, plus liability for exposed data. Most tech companies need both, and many carriers write them together.
Is tech E&O the same as professional liability?
It's a specialized form of professional liability. A general E&O policy is built around advice and services. Tech E&O is written for technology products and services, and it typically adds network security, privacy and media coverage that tech companies need.
Do enterprise customers require tech E&O?
Often, yes. Enterprise contracts and MSAs frequently require proof of technology E&O, and sometimes cyber, at specific limits before you can sign. Send us the insurance section and we'll tell you what it takes to meet it.
Does tech E&O cover AI products?
It can, but policies define technology products and services differently, and some carriers are adding AI-specific terms. If AI is part of your product or how you deliver services, we confirm how the policy treats it before you buy.
How much does tech E&O insurance cost?
Tech E&O pricing depends on what your products and services do and how critical they are to your customers, your revenue and customer mix, the contracts you sign, your security and development practices, claims history, and the limits and retention you choose, including whether cyber is packaged in. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.