What is Technology Business?
Technology business insurance is a package of coverages designed for companies that develop, sell, install, or support hardware, software, and related services. It focuses on liability exposures associated with technology operations—such as errors and omissions from software, third‑party bodily injury or property damage, and losses tied to equipment or data. Common insurance considerations include commercial liability, property coverage, and equipment coverage tailored to tech operations.
Who needs it
Clients range from small software developers and managed service providers to hardware manufacturers, integrators, and SaaS companies. Clubs, associations, and operators that run technology-driven events or provide managed IT services may also need specialized policies. Even retailers and contractors who resell or install technology often seek tailored protection.
What it typically covers
Policies vary, but typical elements include:
- Professional liability / errors & omissions for coding mistakes, system failures, or missed deadlines
- General commercial liability for customer injuries or third‑party property damage
- Property or equipment coverage for owned hardware, servers, and on-site tools
- Network security and privacy coverage for breaches and data loss
- Business interruption coverage for outages caused by covered perils
Underwriting recognizes different exposures across developers, integrators, and cloud providers, so coverages are customized to the operation and contract terms.
Common exclusions or limitations
Policies commonly exclude deliberate wrongdoing, known prior acts, warranty guarantees, and certain cybercrime events unless a specific cyber endorsement is added. Contractual indemnities and certain high‑risk professional services may be limited or require additional endorsements. Pay attention to exclusions in service agreements and vendor contracts when evaluating coverage.
Factors that influence cost
Insurers consider several underwriting factors when pricing policies, including:
- Company size and revenue
- Type of technology provided (software, hardware, cloud services)
- Claims history and incident response practices
- Use of subcontractors and third‑party vendors
- Risk controls such as encryption, backups, and formal change management
Higher limits, broad cyber endorsements, or significant equipment exposure increase premiums; conversely, strong risk management can lower them.
Proof of insurance & compliance
Clients are often asked to provide certificates of insurance and named‑insured endorsements when contracting with customers or partners. Some municipal or enterprise contracts require specific limits or additional insured wording. For a deeper look at how tech programs are structured, see the MCGOWAN RISK SPECIALISTS Technology Insurance Program and the Business Risk, HR Testing, and Insuring Software Products for examples of how insurers document specialized coverages.
How to get a quote
Gather basic information about your operations, revenue, client contracts, claims history, and existing controls. If you need tailored guidance, talk to your broker or ask your agent. If you prefer an online start, you can also request a quote directly through our site by using the phrase ask your agent.
Frequently Asked Questions
Do tech policies cover data breaches?
Many tech packages include or offer cyber/privacy endorsements that cover certain breach response costs and liabilities, but coverage varies—review the limits and definitions carefully.
Will clients require higher limits?
Yes—enterprise customers or government contracts may require higher limits or specific additional insured wording. Confirm contract requirements before signing.
Can I get property coverage for my servers at client sites?
Yes. Equipment coverage can be extended to include hardware on-premises, in transit, or at temporary job sites, subject to policy terms and limits.
Still have questions? Talk to a local insurance expert.