What is Technology Professional Liability?
Technology Professional Liability insurance, also known as Tech E&O (Errors and Omissions), helps protect IT professionals and technology companies from claims of negligence, mistakes, or failure to perform professional services. It is designed to cover legal costs and damages resulting from lawsuits related to your professional services or advice.
Who Needs It
This type of coverage is essential for businesses and independent professionals in the technology sector. Common examples include:
- Software developers and engineers
- IT consultants and managed service providers
- Web and app developers
- Data analysts and cybersecurity firms
- Technology hardware support and installation firms
Clients often require proof of Tech E&O coverage before signing contracts, especially for large or regulated projects.
What It Typically Covers
Technology Professional Liability insurance typically includes coverage for:
- Alleged errors or omissions in your work
- Failure to deliver services as promised
- Negligence or breach of contract
- Legal defense costs and settlements
- Claims related to data loss or system failure caused by your services
Common Exclusions and Limitations
While coverage is broad, there are some common exclusions. These may include:
- Intentional wrongdoing or fraud
- Bodily injury or property damage (typically covered under general liability)
- Claims arising from employer-employee disputes
- Patent or intellectual property violations (unless added)
Always review your policy to understand what is and isn’t covered.
Factors That Influence Cost
Several factors impact the cost of Technology Professional Liability insurance, such as:
- Type of services you offer
- Company size and annual revenue
- Number of employees
- Claims history
- Coverage limits and deductibles chosen
Proof of Insurance and Compliance
Clients may ask for a certificate of insurance to confirm your coverage. This document shows your policy details and can be shared as proof during contract negotiations. Requirements vary by industry and location, so be sure to verify with your client or local regulations.
How to Get a Quote
Getting Technology Professional Liability insurance is simple. Start by evaluating your business risks and coverage needs. Then, request a personalized quote to compare options. Get a quote now.
Frequently Asked Questions
What does Technology Professional Liability insurance protect against?
It protects against claims of negligence, service errors, or contract breaches related to your professional technology services.
Is Tech E&O the same as cyber liability insurance?
No, Tech E&O covers mistakes in service delivery, while cyber liability focuses on data breaches and cyberattacks.
Is this coverage required by law?
No, but many clients and contracts require you to carry it before starting work.
Does it cover subcontractors?
Some policies may include subcontractors, but you should confirm this with your insurer or request the coverage specifically.
Can freelancers get Technology Professional Liability insurance?
Yes, many insurers offer tailored policies for independent professionals and small tech businesses.
Still have questions? Talk to a local insurance expert.