Why Have Technology Errors & Omissions Liability Insurance?

A Tech E&O policy can cover costs for legal defense, settlements and breach of contract allegations. Attorney fees for court cases or settlement negotiations outside of a court can add up quickly even when your business is not at fault. Many businesses large & small do not have the funds to cover these expenses. For example, suppose a company creates software for organizing documents. If this software caused their client’s systems to crash and they can no longer do business, the software company could be at fault. In this circumstance a lawsuit could potentially ruin your business without a Tech E&O policy in place. With a properly written Tech E&O policy in force coverage could be provided for defense costs, settlement expenses and potentially lost income during the court case. The Tech E&O policy is there to take care of all the risks arising from technology related services.

Technology Claims Example

Web Developer

Encom Developer, LLC is hired to design a fully functional interactive website for a communication company. After 6 months, the developer fails to deliver the website as promised in their contract and the company must hire another developer to finish the website. The communication company sues and claims damages of $3,000,000 which includes the increased cost to complete the website, lost profits because of the delay in the delivery and the market value of the website.

Coverage May Include

  • Defense outside the limit available
  • Limits available up to 15 million (higher limits available through excess)
  • Breach of contract coverage available
  • Can combine the Tech E&O, Miscellaneous E&O, Technology Products, General Liability, and Cyber Liability on one policy
  • Full prior acts coverage available even for first time buyer
  • Coverage for mental anguish and distress
  • Additional insured status available
  • Covered services can include Miscellaneous E&O exposures
  • Deductibles start at $0
  • Risk management services available to policy holders for no charge
  • Media and intellectual property coverage built into policy forms

Technology Errors & Omissions Liability Applications


Available Markets