Technology Liability Insurance

Technology liability insurance is a type of Errors & Omissions policy that covers claims for potential damages relating to mistakes or negligent acts in the performance of professional services. This includes both the technology service providers as well as the technology products providers. This can encompass software errors, delay or failure to deliver final product, intellectual property/copyright infringement, failure to implement or install software, manufacturing errors and more.

All technology service and product providers are exposed to potential claims of negligence or errors. This policy can cover cloud computing providers, AI/machine learning providers, custom software development and licensing, MSP, ASP, SaaS, hardware & software installation and integration, tech staffing, payment processors, app developers, cybersecurity specialists, network security consulting as well as others. Claims can be quite complex with crossover issues for cyber liability and many tech E&O policies are written in combination with cyber liability coverage.

A Technology E&O policy can cover a range of risks from a small oversight to system failure. With more operations being automated, the risk of technology disrupting business operations is growing. A small coding error could end up closing a software engineering firm. Claims can also come from unexpected sources when there are tech services that are provided with an Insureds primary operation, such as in engineering services. From offering flawed systems design consulting to technology hardware that disrupts a business, these technology services or products must be contemplated and covered as part of an overall risk management plan.