Your client just called to advise you that he has been served a summons stating that he is being sued by his most important customer. Apparently, his employee has just transmitted a virus to the customer via email. Due to the customer's operating in a paperless environment, his operations have been completely shut down as a result of the virus. Furthermore, it appears that the customer inadvertently transmitted the virus to one of their clients and disrupted their operations as well. Your client needs to know if his package policy will respond.
Welcome to the world of Technology and Information E&O exposures. A substantial number of businesses now are heavily dependent upon the use of information. Many of these businesses utilize technology to store, transmit, and protect information that they have accumulated. Whenever that information is personal in nature, involves financial or health matters, or in some way touches government, there is always the threat of a liability exposure. Therefore, protection of privacy should be a concern for those businesses. These exposures include risks such as:
Coverage for these types of exposures is rarely included in traditional insurance policies. For example, standard CGL policies often require physical damage to tangible property—which does not apply to digital data or software systems. Have you ever tried to hold data in your hand?
That's where Technology Insurance comes into play. Bailey Special Risks, Inc. (BSR) offers tailored coverage solutions for companies that develop, deploy, or rely heavily on technology. Whether your client is a software developer, IT consultant, managed service provider, or data center operator, BSR can help you find the right protection to address the unique cyber and professional liabilities they face.
Ideal Accounts and Appetite
BSR’s Technology Insurance program is designed for businesses that provide technology services or rely on data and digital infrastructure. This includes:
- IT consultants and software developers
- Web hosting and cloud service providers
- Technology staffing firms
- Managed service providers (MSPs)
- Data storage and processing providers
If you have clients who handle sensitive client data, offer advice or services in the tech sector, or provide platforms that others depend on for operations, this program can help mitigate their risk exposures.
Coverage Highlights and Advantages
BSR’s Technology Insurance solutions address a wide range of cyber and professional liability exposures, including:
- Errors and omissions (E&O) liability
- Privacy breach and data loss incidents
- Network security failures and cyberattacks
- Business interruption due to third-party system failure
- Media and intellectual property violations
- Transmission of malicious code or viruses
This coverage is especially vital for businesses whose operations or client relationships depend on the integrity, availability, and confidentiality of data.
Underwriting Notes and Minimum Premiums
Because this is a specialized form of insurance, most policies are written on a non-admitted basis through surplus lines carriers. BSR works with a variety of markets to tailor policies for each client’s risk profile. Minimum premiums vary based on the size and scope of the insured’s operations, but BSR can help you navigate underwriting requirements efficiently.
Territories and Availability
This program is available to licensed agents and brokers in the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, MD, MA, MI, MS, MO, NV, NJ, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WV, WI, and WY.
Why Work With Bailey Special Risks, Inc.
Bailey Special Risks, Inc. is a wholesale broker with deep expertise in emerging and complex risks, including cyber and technology-related exposures. With access to multiple surplus lines markets and a commitment to responsive service, BSR helps agents place tough or unique technology accounts with confidence. From small tech startups to established IT firms, BSR provides tailored solutions backed by expert underwriting and carrier relationships.
Frequently Asked Questions
What types of accounts are a good fit for this Technology Insurance program?
Ideal accounts include IT consultants, software developers, managed service providers, data centers, and any business offering technology-based services or handling sensitive data.
Is this coverage available on an admitted basis?
No, most of the coverage is written on a non-admitted basis through surplus lines carriers.
Can this program cover third-party liability from data breaches or cyber events?
Yes, coverage can include third-party liability for data breaches, network security failures, and the transmission of malicious code.
What states is this program available in?
BSR offers this program in 42 states, including CA, FL, NY, TX, and many others across the country.
What information is needed to get a quote?
Typical submissions include a completed application, loss history, and details about the client’s operations, data handling practices, and services provided.
Need help placing an account? Connect with a market specialist.