Your client just called to say he was served with a summons: his most important customer is suing after an employee of the insured transmitted a virus by email. Because the customer operates a paperless environment, the virus shut down their operations. The customer then inadvertently transmitted the virus to one of their clients and that company’s operations were also disrupted. Your client wants to know whether his package policy will respond.
Welcome to the technology and information errors & omissions (E&O) world. A growing number of businesses depend on digital information and technology platforms to operate. Those businesses—especially those that store, process, or transmit other people’s data—carry exposures that traditional general liability or property forms were not designed to cover. Common technology and information exposures include:
Standard CGL policies typically require physical damage to tangible property to trigger coverage—digital data and software rarely qualify. That gap is why many technology firms, IT service providers, and data hosts need specialized technology/cyber and E&O insurance.
Bailey Special Risks, Inc. (BSR) places Technology Insurance designed for firms that develop, deploy, or rely heavily on technology. As a wholesale broker with deep market access, BSR works with surplus lines carriers and specialty markets to tailor solutions for software vendors, consultants, managed service providers, hosting companies, and other technology-dependent businesses.
Ideal Accounts and Appetite
BSR’s Technology Insurance program targets businesses that provide technology services or depend on digital infrastructure for client operations. Typical classes we place include:
- IT consultants and software developers
- Web hosting, cloud and platform providers
- Managed service providers (MSPs) and IT outsourcing firms
- Technology staffing firms and VARs
- Data storage, colocation, and processing providers
If your insured handles sensitive client data, provides technical advice, or runs platforms that others rely on for uptime and security, this program may be a strong fit.
Coverage Highlights and Advantages
BSR’s Technology Insurance solutions are intended to fill the gaps left by traditional policies. Coverages commonly available through the program include:
- Professional liability / errors & omissions for technology services
- Privacy breach response and third-party liability for data loss
- Network security and cyberattack liability
- Business interruption and contingent business interruption for affected third parties
- Media liability and intellectual property infringement
- Liability for transmission of malicious code
These coverages can respond to damages, defense costs, regulatory response, and incident response expenses depending on the form and limits selected.
Underwriting Notes and Minimum Premiums
Most placements under this program are written on a non-admitted basis through surplus lines markets. Underwriting focuses on the insured’s services, exposures, security controls, and claims history. Typical submission requirements include a completed application, detailed description of services, cyber security controls (firewalls, MFA, backups, patching), and loss history.
Minimum premiums vary by carrier and class; BSR can help identify the appropriate market and provide realistic minimums once you submit account details.
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.
BSR is a wholesale broker focused on placing complex and emerging risks. Their strengths for technology accounts include:
- Access to multiple surplus lines markets that underwrite cyber and technology E&O risks
- Experienced technology underwriting resources who understand service models and tech stacks
- A consultative placement process that matches each account to carriers with the right appetite
- Support for tailoring limits, retentions, and extensions to the insured’s exposures
Example scenarios that often fit this program:
- You have an MSP with recurring revenue that manages client networks and needs cyber liability plus E&O for service failures.
- You represent a SaaS vendor that stores customer records and wants broader third-party liability and business interruption protection in case of a breach or harmful code transmission.
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 coverage is placed on a non-admitted basis through surplus lines carriers familiar with technology and cyber risks.
Can this program cover third-party liability from data breaches or cyber events?
Yes. The program can include third-party liability for privacy breaches, network security failures, transmission of malicious code, and related third-party business interruption depending on the carrier form.
What states is this program available in?
BSR offers this program in 42 states, including CA, FL, NY, and TX, plus many others across the country. See the Territories section above for the full list.
What information is needed to get a quote?
Typical submissions include a completed application, loss history, descriptions of services and client types, and documentation of security controls and incident response procedures.
Need help placing an account? Connect with a market specialist.