What is Tech Insurance?
Tech insurance (sometimes called technology errors & omissions or technology professional liability) is a suite of coverages designed for firms that design, build, host or support software and hardware solutions. It protects against liability for professional mistakes, data breaches, and related third‑party claims. Policies often interact with commercial liability, property coverage, and cyber liability elements to create a broader risk-transfer solution.
Who needs it
Startups, software developers, IT consultants, managed service providers, SaaS firms, and systems integrators commonly seek tech insurance. Associations, clubs or organizations that operate technology platforms may also need protection. If your work exposes clients to potential data loss, software failure, or professional advice errors, coverage is usually recommended; your firm’s size, client contracts, and whether you store confidential data will influence the exact program you need. Many providers bundle specialized options — see the Technology Based Services Insurance Program for one example of a tailored solution.
What it typically covers
Core elements of tech insurance can include:
- Technology professional liability (errors & omissions) for mistakes in design, coding, or implementation
- Data breach and cyber incident response and liability
- Media liability for intellectual property or content claims
- Property and equipment coverage for owned hardware
- Commercial general liability for onsite incidents and limited commercial auto exposure when vehicles are used for client work
For firms that provide consulting or systems integration services, specialized forms such as those described in Computer and Systems Consultants Insurance can be relevant. The evolving role of technology in business also affects available coverages and endorsements — see Impact of Technology on Business and Insurance for context.
Common exclusions or limitations
Typical exclusions include known prior acts, intentional wrongdoing, bodily injury unrelated to operations, and certain regulatory fines. Some policies limit coverage for breaches caused by inadequate security practices or unpatched systems. Exclusions and sublimits vary by insurer, so review policy language carefully. A common risk scenario is a client claim after a software update causes downtime and lost revenue; how that loss is covered depends on the policy’s definitions and limits.
Factors that influence cost
Underwriting factors include company revenue, years in business, client contract terms (indemnities/hold harmless clauses), claims history, data sensitivity, security controls, and use of subcontractors. Risk management measures—like formal change control, encryption, and incident response plans—can reduce premiums or expand available limits. Exclusions and deductibles also change pricing.
Proof of insurance & compliance
Clients frequently request certificates of insurance (COIs) and endorsements to meet contractual requirements. Maintain up‑to‑date COIs showing applicable limits and additional insured status when required. Some sectors require specific evidence of cyber coverage or participant accident coverage for events; confirm contract terms before starting work.
How to get a quote
Gather basic company information, revenue figures, descriptions of services, current contracts, claims history, and details on security practices. Discuss these with your broker or, if you prefer, you can ask your agent to start the application and compare program options.
Frequently Asked Questions
Do I need separate cyber and professional liability policies?
Sometimes they are combined or provided as complementary coverages; whether you need both depends on your exposures and the policy forms available from insurers.
Will a client contract force me to add them as an additional insured?
Some contracts require it, but many tech E&O policies don’t grant additional insured status for contractual indemnities. Review contract language and coordinate with your broker before agreeing.
How quickly can claims be reported?
Reporting requirements vary; report incidents promptly as required by the policy to preserve coverage and access incident-response resources.
Still have questions? Talk to a local insurance expert.