Tech E&O insurance (technology errors and omissions) pays for the lawsuit when your software or IT service costs a client money: the bad deploy that takes a customer offline for two days, the integration bug that corrupts their books, the migration that ships three weeks late. It is professional liability written for technology companies, it is claims-made, and software developers who buy through Insureon pay about $111 a month, or $1,330 a year. The part most buyers miss is that "tech E&O" is a label, not a standard form. Some policies include data-breach liability and breach-of-contract claims; Corgi's standard form excludes both, plus IP and AI claims, unless you add endorsements. Two quotes with the same name and the same limit can cover very different things.
This is an independent guide from QuoteSweep, which maps the modern commercial insurance landscape. QuoteSweep does not compete with any of these companies, and none pays for placement here.
TL;DR: Tech E&O is professional liability for companies whose product or service is technology. It covers a client's financial loss from your bug, outage, failed integration or late delivery. Cyber insurance covers your own breach costs, and general liability covers neither. Contracts set the limit: 51% of IT businesses buying through Insureon pick $1M/$1M, while enterprise and public-sector buyers often ask for $2M to $5M or more, plus retro-date and tail conditions. Insureon reports about $111/month for software developers; Vouch puts the startup E&O median at $3,700/year. Before comparing prices, check the wording on data breach, IP, AI and breach of contract.
What tech E&O insurance covers
Tech E&O responds when a client, a third party, claims your technology product or service failed and cost them money. Insureon defines it as errors and omissions coverage that also includes third-party cyber liability, handling claims over mistakes, undelivered IT services, breach of contract and data breach lawsuits.
The examples carriers publish read like postmortems, which makes them more useful than the definitions:
- A routine code update causes a 48-hour outage on a SaaS platform, and the largest customer sues for revenue lost during the downtime. (Corgi)
- An analytics product miscalculates demand forecasts, and a retail client over-orders $500,000 of inventory it can't sell. (Corgi)
- A custom integration between a client's ERP and its payment processor corrupts three months of financial records. (Corgi)
- Software you sold glitches and the client loses a month of billing data. (The Hartford)
- A new ecommerce site crashes on launch day and stays down for three days, and the client sues the developer for lost income. (Hiscox)
How the policy behaves
It's claims-made: the claim has to arrive while the policy is active, and the error has to have happened on or after the retroactive date, per Insureon. Let it lapse, or switch carriers without carrying the retro date over, and past work can end up uninsured. Hiscox says it may offer retroactive coverage for work done under another carrier, which is the thing to ask any time you move.
Defense costs usually sit inside the limit. Corgi's page spells it out: every dollar spent on lawyers reduces what's left for a settlement, unlike general liability, where defense is paid on top. Chubb's tech E&O application prints the same warning in capitals on page one. A $1M policy is not $1M of settlement money.
What it usually doesn't cover
Vouch lists the common exclusions: bodily injury and property damage (general liability), intentional or fraudulent acts, criminal activity and direct regulatory fines, employment claims, and cyber events that hit your own systems (standalone cyber).
Contract claims are the grey zone. The Hartford warns that many E&O policies don't cover actions that breach a contract. Corgi's standard form excludes claims arising solely from breach of contract, such as a missed SLA, and even its carveback endorsement still excludes SLA penalties, liquidated damages, service credits and refunds. My advice: assume the credits in your uptime SLA come out of your own pocket until a carrier shows you wording that says otherwise. What insurance can pay is the client's actual business loss caused by your negligence.
Same name, different policies
Four published descriptions, side by side:
| Source | Third-party data breach | IP infringement | AI claims |
|---|---|---|---|
| Insureon (its definition) | Included | For certain professions | Not addressed |
| The Hartford FailSafe | Privacy and network security liability listed | Listed | Not addressed |
| Embroker Tech E&O/Cyber | Cyber liability included | Not included | AI endorsement on eligible quotes |
| Corgi Tech E&O | Excluded (sent to cyber) | Excluded unless endorsed | Excluded unless endorsed |
None of these is wrong. They're different forms, and your quote will be one of them, so compare exclusions line by line rather than the product name on the proposal.
Tech E&O vs professional liability vs cyber
The difference is who gets hurt, and by what.
| Professional liability (general E&O) | Tech E&O | Cyber insurance | |
|---|---|---|---|
| The claim it answers | Your advice or service was negligent and cost a client money | Your technology product or service failed and cost a client money | Your systems or data were breached or attacked |
| Whose loss | Third party (the client) | Third party (the client) | First party (your own costs), plus third-party liability |
| Typical example | A consultant's recommendation backfires | A code update causes a 48-hour client outage | Ransomware locks your systems |
| Pays your forensics, notification, data recovery | No | No | Yes |
| Client sues over a breach your product caused | Depends on the form | Yes if third-party cyber is included (not every form) | Yes, under the liability section |
Vouch's own comparison makes the same split: tech E&O is third-party, cyber is first-party, paying investigation, data recovery and notification costs after an attack on you. On general versus tech E&O, Vouch notes that standard E&O is built around professional negligence, while tech E&O extends to failures in code, systems and digital products. A consultant's policy may never have contemplated a product that breaks at 2 a.m. (For the basics, see professional vs general liability.)
The messy case is a client data breach your product caused. Vouch lists it as a typical tech E&O event; Corgi's standard tech E&O sends it to cyber. That's why I'd buy both lines from one carrier, or have a broker confirm the two forms hand off cleanly. Coalition combines third-party tech E&O with first-party cyber and runs both through one claims team. Hiscox sells IT professionals professional liability and cyber as separate policies: cheaper to start, more work to line up.
Who needs tech E&O
Anyone who sells technology to someone who depends on it. The Hartford lists software developers, website designers, computer consultants, systems integrators, federal IT contractors, hardware makers, telecom carriers and web hosts; Vouch adds MSPs, data and AI providers, and fintech and healthtech companies.
SaaS companies. Uptime and correctness are the product, so the 48-hour outage and the bad forecast are SaaS claims. Enterprise customers will ask for tech E&O in the MSA, usually next to cyber; see the best cyber insurance for SaaS.
Dev shops and agencies. Deliverables, deadlines and acceptance criteria are where agency claims start. Watch subcontractors: Chubb's application asks what share of revenue is subcontracted and whether your subs carry $1M of E&O, and Corgi covers subcontracted and offshore work only by endorsement. If half your delivery is outsourced, confirm that half is insured.
Freelance developers and IT consultants. Insureon's cost data mostly describes you: most of its technology customers have fewer than five employees, revenue from around $50,000 to more than $200,000, and five years or less in business. Whether one person needs it is settled the day a client contract requires it. More in our IT consultant insurance guide.
MSPs. Insureon uses service disruptions at a managed service provider as its example of what E&O covers, and one bad patch can hit every client at once. Buy tech E&O and cyber together; see the best cyber insurance for MSPs.
AI companies. Find out whether AI is covered on purpose or merely not excluded yet, because carriers are splitting. Embroker says an AI endorsement has been included automatically on every eligible startup-program Tech E&O/Cyber quote since August 5, 2025, with up to $150,000 for fixing or removing a flawed AI system at a client's request. Corgi's standard form excludes AI claims and sells a modular AI endorsement. Vouch sells AI insurance as a specialized tech E&O policy covering hallucinations, algorithmic bias and certain IP disputes. More in our AI agent insurance explainer.
What client contracts require, and typical limits
Most tech companies buy their first E&O policy because a customer's MSA told them to. Vouch says enterprise contracts are often the biggest driver of E&O limits, and Hiscox lists a client requiring coverage to sign or renew a contract as a main reason to buy.
Among IT businesses buying tech E&O through Insureon, 51% choose $1M per occurrence and $1M aggregate, 15% choose $2M/$2M and 11% choose $5M/$5M. Vouch's guidance by stage: early-stage startups commonly start at $1M, Series A and B companies often carry $2M to $3M, and growth-stage companies serving enterprises may need $5M to $10M or more.
Public-sector buyers publish their insurance exhibits, which makes them a good preview of what a large customer's lawyers will send:
| Buyer | Tech E&O requirement | Claims-made conditions |
|---|---|---|
| New York State ITS | $1M for software, hardware and implementation; cloud contracts $2M, $5M or $10M by data risk | Option to buy at least 1 year of tail after work is completed; carrier rated A- VII or better by A.M. Best |
| UNLV | $5M each claim, $5M annual aggregate | Retro date no later than the contract's effective date; 2-year extended reporting period after termination |
| University of Nevada, Reno | $5M (cyber and tech E&O) for contracts under $1M, higher above that | If claims-made, keep it 2 years after deliverables are accepted; name the university as additional insured |
The limit gets the attention; the conditions trip people up. A retro date later than the contract start leaves early work uninsured. A tail clause means you owe coverage after the project ends, even if you've switched carriers. A rating clause can rule out unrated paper. Your certificate of insurance has to show all of it.
Send the insurance exhibit to your broker before you sign; Vouch sells contract requirement review as a named service. And remember the insurance limit is not your liability cap. The cap lives in the limitation-of-liability clause, which underwriters read: Chubb's application asks what share of your contracts cap liability at the cost of your services and disclaim consequential damages. A $5M requirement on a $40,000 contract is worth questioning with the buyer's risk team before you pay for it.
What the tech E&O application asks
Chubb's Digitech short-form application for technology E&O, cyber and privacy is one carrier's form, but it shows what underwriters want:
- Size and mix: revenue for the prior and current year, domestic and online share, headcount, and a revenue split across more than 40 service types, from software development to web hosting.
- The maximum number of people or organizations whose protected information you hold.
- Higher-hazard work, such as payment processing, crypto exchanges, data brokerage, or software for medical, aviation or life-safety uses. A yes means you explain.
- Claims in the past three years, and facts you know of that could become one. The form says underwriters will rely on your answers.
- Contracts and delivery, the section founders underprepare: largest active contract, average contract value and length, what share of customers sign written contracts, legal review, how many contracts carry a liability cap, a consequential-damages disclaimer and a warranty disclaimer, formal acceptance and sign-off, and a written QA or development methodology.
- Subcontractor use, government revenue, basic security (firewalls, incident response plan, patching, PCI and HIPAA status) and your current retroactive dates.
Have your MSA template, a sample SOW with acceptance terms, your subcontractor agreement and your five largest contracts ready before you start.
How much does tech E&O insurance cost?
Software developers pay about $111 a month ($1,330 a year) for tech E&O, per Insureon, which bases its figures on the median policy; the typical policy behind it is $1M/$1M with a $2,500 deductible. Across all tech businesses, Insureon reports $110 a month, with annual premiums from around $500 to more than $9,000, and 45% paying under $100 a month. Our software developer insurance cost breakdown puts tech E&O next to general liability and workers' comp.
| Source | Who it describes | Tech E&O / E&O cost |
|---|---|---|
| Insureon | Software developers, mostly small | $111/month ($1,330/year) |
| Insureon | All tech and IT businesses | $110/month; about $500 to $9,000+ a year |
| Vouch | 3,000+ startups | $3,700/year median E&O; $1,300 to $12,400 range |
| Hiscox | Illustrative California IT consultant, $150K revenue, $500K limit, $5K deductible | $42.92/month ($515/year) |
| The Hartford | E&O, per its tech E&O page | About $500 to $1,000 per employee per year |
The spread isn't a contradiction. Insureon's book skews toward very small firms; Vouch's median describes venture-backed startups carrying bigger limits for bigger customers. A funded SaaS company selling to enterprises should budget toward the Vouch end. See the tech startup insurance cost guide for the whole stack and the E&O cost guide for other professions.
Revenue, the type of software, industries served, claims history, limit and deductible move the price, per Embroker and Vouch, and Vouch adds security practices, QA processes and your clients' contract requirements. If you buy cyber separately, Insureon's software developers pay about $124 a month for it.
Where to buy tech E&O
Six providers, sorted by how you buy rather than by price. Get at least two quotes on identical limits and compare the wording before the premium.
The Hartford: best for a large carrier with a broad form
The Hartford sells tech E&O as FailSafe. Its feature list covers errors and omissions, security liability, data privacy and network security liability, personal injury, intellectual property and media liability, so it reads closer to a combined tech and cyber liability form than bare E&O. Quote online or by phone.
Best for: established software and IT firms that want privacy, IP and media liability on one form from a large carrier.
Hiscox: best for freelancers and small IT firms buying direct
Hiscox sells professional liability to IT professionals directly and says it has 600,000+ customers. Per its professional liability page, premiums start at $270 a year, bundling saves up to 5%, worldwide work is covered if the suit is filed in the U.S., its territories or Canada, and it's licensed in 49 states and D.C. (not Alaska). Cyber is a separate policy.
Best for: solo developers, web designers and small IT consultancies that need a policy sized for small contracts.
Embroker: best digital buy for funded startups
Embroker sells Tech E&O and cyber as one product online, covering professional negligence, defects and errors, contractual liability and product launch delays, but not IP infringement. Its AI endorsement comes on eligible startup-program quotes, and it writes excess tech E&O over primary policies from more than 30 other carriers, which helps when a contract demands more limit.
Best for: venture-backed software companies that want tech E&O, cyber and AI cover on one form.
Vouch: best advisor-led broker for contract-driven buying
Vouch is a broker, not a carrier, and says it works with 6,000+ companies. Its pitch is advice: a contract requirement review service, published limit guidance by funding stage, and AI insurance built as specialized tech E&O. Its guide calls $1M per claim the common starting point.
Best for: startups whose next enterprise deal is waiting on an insurance exhibit.
Coalition: best for tech E&O paired with active cyber
Coalition offers tech E&O combined with its Active Cyber Insurance through brokers. Listed triggers include software bugs, late or failed delivery, IP claims over copyrighted or licensed code, implementation errors and failure to meet contract requirements. Policyholders get Coalition Control for threat monitoring, and one claims team handles E&O and cyber.
Best for: data-heavy SaaS companies and MSPs that want both lines from one carrier, with security tooling attached.
Corgi: best for self-serve modular cover
Corgi publishes more policy detail on its tech E&O page than anyone else on this list. The form is claims-made with defense inside the limit, with illustrative limits up to $1M per claim and $2M aggregate. The standard form excludes pure breach-of-contract and SLA claims, IP, data breach liability and AI claims; endorsements add back AI and algorithmic liability (modular), copyright and trademark, an SLA carveback, and subcontracted work. Corgi says availability varies by jurisdiction and underwriting, and as with any carrier, eligibility depends on your state and business class. Read our Corgi tech E&O review before you bind, especially if a contract names a required carrier rating.
Best for: startups and AI companies that want to assemble their own form from modules without a broker.
How to choose
- Match the contract first: limit, retro date, tail, carrier rating and additional-insured wording.
- Read four exclusions before the price: data breach, IP, AI and breach of contract.
- Buy E&O and cyber from one carrier, or have a broker confirm how the two forms split a breach your product caused.
- If you outsource development, confirm subcontracted work is covered, and carry your retro date over whenever you switch.
Frequently Asked Questions
Is tech E&O the same as professional liability?
It's a type of professional liability. Tech E&O extends standard E&O to failures in code, systems and digital products and often adds third-party cyber, so a software company should buy a form written for technology.
Does tech E&O cover a data breach?
Only the third-party side, and only on some forms. Insureon's definition includes data breach lawsuits; Corgi's standard form sends them to cyber. No tech E&O policy pays your own forensics, notification or ransomware costs; that's cyber insurance.
Do freelance developers need tech E&O?
If a client contract requires it, yes. Otherwise it's a judgment call on how much a client could lose if your code fails, and small policies are cheap: Hiscox's illustrative California IT consultant pays $42.92 a month for a $500K limit.
What tech E&O limits do clients require?
$1M is the common starting point, chosen by 51% of IT businesses buying through Insureon. Enterprise and public-sector contracts often want more: up to $10M for high-risk cloud work in New York State, and $5M at UNLV.
Does tech E&O cover SLA credits?
Usually not. The Hartford says many E&O policies don't cover breach of contract, and Corgi excludes SLA penalties and service credits even with its carveback; what can be covered is the client's actual loss from your negligence.
How much does tech E&O cost?
Insureon reports about $111 a month ($1,330 a year) for software developers on a $1M/$1M policy. Venture-backed startups pay more; Vouch's startup E&O median is $3,700 a year.
The bottom line
Tech E&O covers the client who says your software cost them money; cyber covers the attacker in your systems. A software company selling to businesses needs both, and the contract usually picks the limit before you do. Read the data breach, IP, AI and breach-of-contract wording, match the retro date and tail to your contracts, then compare price. The Hartford and Coalition suit buyers who want one broad form, Hiscox suits small shops buying direct, Embroker and Corgi suit funded startups buying online, and Vouch suits anyone who wants an advisor on the contract.
