What is tech errors and omissions?

Every business has unique risks that can seriously harm its operations if not properly addressed.  As a business utilizing technology to produce and deliver products or services, it is important to recognize your unique risks and that your standard commercial general liability (CGL) policy does not provide coverage for those unique risks.

Technology professional liability coverage, also referred to as tech errors and omissions (E&O), provides coverage for customer/clients financial loss resulting from the failure of your product to perform as intended, or as a result of an act, error, or omission committed in the service you provided.

Developing programming and coding technologies. Website design. Programmer working in a software develop company office.

Does my business need tech E&O coverage?

Most companies today utilize technology in some part of providing a service or product and need to take the necessary precautions. To ensure your company is covering all bases, you should conduct a full risk management assessment.

Cyber Security and Digital Data Protection Concept. Icon graphic interface showing secure firewall technology for online data access defense against hacker, virus and insecure information for privacy.

What does tech E&O cover?

Tech E&O is designed to cover losses incurred by customers or clients as a result of the product or service you provided.  Tech E&O policies cover both liability and property loss exposures including losses resulting from: (1) technology services, (2) technology products, (3) media content, and (4) network security breaches.

Coverage is also provided for losses you incur as a result of extortion threats, crisis management expense, and business interruption.

Tech E&O examples


A part your company produces is installed in a piece of equipment. After a short amount of time, the component simply stops working, causing the equipment to fail to work, but otherwise not damaging anything or hurting anyone. The third party that relies on this equipment for its business has to stop operations and suffers a financial loss.

Customer service and consulting

One of your employees recommends that a client adjust its network. The client follows the advice and its network crashes as a result, causing a time and financial loss for its operations.

Coding and software

A mistake was made and an error in the code of a website or program your company produced isn’t found before it is implemented. A third party depends on this product or service to operate its business and its operations are stalled due to the error, causing them a financial loss.

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