Technology Errors & Omissions Insurance

Technology Errors & Omissions (E&O) insurance, also known as Professional Liability insurance or Tech E&O insurance, is a specialized type of coverage designed to protect technology companies and professionals against liability arising from errors, omissions, or negligent acts related to their professional services or products. Here’s an overview of Technology Errors & Omissions insurance:

What Does Technology Errors & Omissions Insurance Cover?

  1. Professional Negligence: Coverage for claims alleging errors, omissions, or negligent acts in the performance of professional services, including software development, IT consulting, system integration, and technical support.
  2. Failure to Perform: Protection against claims arising from failure to deliver services or products as promised in contracts or agreements.
  3. Intellectual Property Infringement: Coverage for claims alleging infringement of intellectual property rights, such as copyright, trademark, or patent infringement, in connection with technology services or products.
  4. Data Breaches and Privacy Violations: Coverage for claims related to data breaches, unauthorized access, or disclosure of sensitive information, including legal defense costs and settlement payments.
  5. Media Liability: Protection against claims of defamation, libel, or slander arising from content published or distributed by the insured, such as social media posts, advertising, or website content.
  6. Cyber Liability: Some Technology E&O policies may include cyber liability coverage, which extends to cover losses resulting from cyberattacks, data breaches, or other cyber incidents.

Who Needs Technology Errors & Omissions Insurance?

  1. Technology Companies: Software developers, IT consultants, system integrators, and other technology firms that provide professional services or products to clients.
  2. Telecommunications Providers: Companies involved in telecommunications, networking, and internet services may require E&O insurance to protect against claims related to service interruptions or failures.
  3. Digital Media and Marketing Agencies: Firms engaged in digital marketing, advertising, or content creation may need coverage for media liability and intellectual property infringement risks.
  4. Data Processing and Hosting Providers: Businesses that handle sensitive data or provide data processing, hosting, or cloud services may require coverage for data breaches and privacy violations.

Key Considerations:

  1. Policy Limits and Deductibles: Assess the potential risks faced by your business and ensure that policy limits and deductibles are adequate to provide sufficient protection.
  2. Coverage Exclusions: Understand the exclusions and limitations of the policy, particularly regarding pre-existing conditions, intentional acts, and certain types of liabilities that may not be covered.
  3. Claims History: Insurers may evaluate your claims history and risk profile when determining premiums and coverage eligibility.
  4. Legal and Regulatory Compliance: Ensure that your business complies with applicable laws, regulations, and industry standards related to data privacy, cybersecurity, and intellectual property rights to minimize exposure to liability.


Technology Errors & Omissions insurance is an essential component of risk management for technology companies and professionals. By providing financial protection against liability arising from professional errors, omissions, or negligence, E&O insurance helps safeguard businesses and professionals in the fast-paced and dynamic technology industry. Working with experienced insurance professionals can help businesses identify their unique risks and secure appropriate coverage to mitigate potential liabilities.

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