Who needs this coverage and why does it matter?
Any company exposed to risks like software errors, missed SLAs, client financial losses from its products, and data loss benefits from technology errors and omissions insurance.
AI and ML startups
You generate outputs that influence decisions or automate processes. Model errors or unexpected behavior can create client losses and disputes.
Fintech companies
You process transactions and financial data, so system failures or delays can trigger claims when funds or reporting are affected.
GovTech
You build software for government agencies or public sector clients. Missed timelines or performance failures carry strict contractual consequences.
SaaS startups
You provide software that customers depend on day in and day out. Errors, outages, or missed SLAs can lead to claims when their operations are disrupted.
Space startups
You build software and systems for satellites, launch operations, or ground infrastructure. Failures in navigation or data processing can disrupt missions and trigger high-value claims.
Web3/Digital Assets
You build or operate blockchain-based platforms, smart contracts, or token ecosystems. Code vulnerabilities or platform failures can lead to financial loss and complex liability issues.
"RiskCube compared Tech E&O quotes across 5 carriers and showed us exactly where the coverage gaps were — we closed our enterprise deal with confidence."
What Is Technology Errors and Omissions (E&O) insurance?
Tech E&O insurance is a type of professional liability cover for software and tech businesses. It:
- Covers claims where your product fails and a customer suffers financial loss.
- Reimburses your business for legal settlements or court judgments.
- Helps protect the business from defense costs and covered losses, subject to your policy terms.
Example situations:
- API outage during peak usage. Client checkout fails and revenue is lost.
- AI agent produces inaccurate outputs. Client makes bad decisions and incurs financial loss.
- Deployment breaks a core feature. SLAs are missed, which triggers a claim.
Simplify the process of finding coverage that meets your unique needs with RiskCube.
What's covered
Software errors and bugs
Coverage applies when your product contains defects that disrupt customer operations. For example, a release introduces a bug that breaks a core feature for paying users.
Failure to meet SLAs or contracts
Tech E&O coverage applies when you miss service levels or delivery terms. For example, downtime that exceeds agreed uptime in a signed contract.
Client financial losses
It also comes into play when your product causes measurable loss for a customer. For example, a system failure leads to lost transactions or revenue.
Data loss from product issues
Your policy covers data loss or corruption caused by your system. This can overlap with cyber policies, depending on the structure.
Legal defense costs
Coverage includes legal expenses when a claim is filed. This can include attorney fees and settlement costs, but varies between policies.
Coverage varies by policy terms, conditions, and limits.
Common Exclusions
Intentional wrongdoing or fraud
Policies exclude deliberate acts. For example, knowingly shipping a defective product would not be covered.
Known incidents before policy start
Insurers exclude issues you knew about before coverage began. For example, an unresolved bug reported before binding does not qualify.
Patent infringement
Patent claims are usually excluded as well. Some policies include limited copyright coverage under media liability.
Intellectual property infringement
Claims involving misuse of protected content or code are typically excluded.
Financial insolvency
Insurance does not cover a company's inability to meet its financial obligations. For example, losses due to bankruptcy or cash flow failure would not be covered.
Varies by carrier and policy wording; some exclusions have exceptions.
Not sure what's excluded on your policy? Talk to an expert
24h
average time from application to broker-verified quotes
From application to Certificate of Insurance (COI), often in ~24 hours
Assess your unique risk profile
~10 min · one-time form
Complete a short digital intake form so we can understand your unique risk profile, your industry, stage, contracts, and exposures.
AI & brokers scan the market
Top-rated carriers compared
Our AI agents and licensed brokers scan the market's top-rated carriers to find the best quotes for your business.
Close the deal with proof of coverage
Vendor-ready in ~24 hours
We present the options that satisfy your vendor requirements and get you proof of coverage, so you can close the deal.
Assess your unique risk profile
~10 min · one-time form
Complete a short digital intake form so we can understand your unique risk profile, your industry, stage, contracts, and exposures.
AI & brokers scan the market
Top-rated carriers compared
Our AI agents and licensed brokers scan the market's top-rated carriers to find the best quotes for your business.
Close the deal with proof of coverage
Vendor-ready in ~24 hours
We present the options that satisfy your vendor requirements and get you proof of coverage, so you can close the deal.
FAQs About Tech E&O Insurance
Direct answers to Tech E&O coverage, eligibility, and vendor requirements. Every response is verified by licensed brokers at our California-licensed brokerage to ensure accuracy and regulatory compliance.
Getting started
How does Tech E&O help you to close enterprise deals?
Many MSAs ask for proof of coverage with defined limits before onboarding starts. RiskCube compares quotes from multiple carriers so you can secure the coverage that meets these insurance requirements and allows you to close your enterprise deals.
What information do I need to apply?
You'll need to share details about your product, customers, revenue, and contractual obligations such as SLAs or indemnities. You'll also disclose prior claims or known incidents. RiskCube collects your data once and acts as your independent broker, scanning the entire market to generate comparable quotes from multiple top-rated carriers.
How fast can we get Tech E&O quotes?
You can get a Tech E&O quote in about 24 hours or less with RiskCube. The exact time it takes will depend on your risk profile and underwriting complexity.
Coverage basics
Is Tech E&O the same as cyber insurance?
No. Tech E&O and cyber insurance cover different types of risk. Tech E&O addresses product failure such as bugs or missed SLAs. Cyber tends to cover security incidents like breaches or unauthorized access. Many startups have both.
Does Tech E&O cover software downtime?
Yes, Tech E&O typically covers financial losses resulting from software downtime. Claims can involve outages, service interruptions, or system failures that result in financial loss. The outcome will vary based on policy wording, exclusions, and the cause of the downtime.
Does Tech E&O include cyber coverage?
Some policies include cyber liability components, but scope varies. You'll need to review first-party and third-party coverage along with sub-limits. RiskCube compares these elements so you can see whether the coverage offered is meaningful or limited.
Does Tech E&O cover data breaches?
Tech E&O can respond if a breach leads to financial loss for a client and falls within policy terms, but it's not primary cyber coverage. Breach response costs and first-party losses are typically handled under cyber insurance.
Cost & sizing
How much Tech E&O coverage do startups need?
How much Tech E&O coverage startups need depends on their contract requirements and risk exposure. For example, early-stage startups often start with lower limits. Companies selling to enterprises need higher limits.
What's the difference between Tech E&O and General Liability?
General Liability covers bodily injury and property damage. Tech E&O covers financial loss caused by your technology, such as bugs or service failures. You need both policies to cover different exposure areas.
AI & enterprise risk
Does Tech E&O cover AI risks like algorithmic bias or hallucinations?
Some Tech E&O coverage can include AI risks, but this depends on the carrier's definitions and how their policies are worded. The biggest insurance companies are starting to exclude AI risks from their Tech E&O policies, and while this is not fully excluded now, it will likely become more common. If your company is exposed to AI risks, RiskCube can add an excess policy on top to cover these gaps. Excess insurance increases the amount of coverage you have for a given policy and can be structured to address areas where standard coverage falls short.
How do we handle Waiver of Subrogation in enterprise MSAs?
Many enterprise contracts ask for waiver of subrogation language alongside other insurance requirements, and availability depends on the policy and carrier. RiskCube checks that E&O insurance for technology companies includes these terms so you can meet your contract requirements.
About the author
Andrei Craciunescu
Founder & CEO, RiskCube · CA License #4467994
LinkedIn ProfileAndrei previously worked in Risk & Analytics at WTW (Willis Towers Watson), one of the world's largest insurance brokers. He holds an M.Sc. in Mathematics from LMU Munich and conducted PhD-level research in risk and insurance modeling. His work focuses on translating risk data into actionable insurance coverage decisions for VC-backed startups and small-to-medium businesses across the U.S.