Glossary / People & market / Technology Errors and Omissions (Tech E&O)

Technology Errors and Omissions (Tech E&O)

Also known as: Tech E&O · technology E&O · technology professional liability

People & market

Professional liability built for technology companies, covering claims that your software, platform, or tech services failed or caused a client a loss.

Technology Errors and Omissions (Tech E&O) is professional liability tailored to technology and software companies. It covers claims that your product or technology service failed to perform, contained an error, or caused a client a financial loss, for example a SaaS outage that breaches an SLA, a bug that corrupts customer data, or an integration that fails. Modern Tech E&O policies are frequently combined with cyber liability into a single form, since a technology failure and a data breach often overlap. It is the flagship coverage for SaaS, AI, and platform startups and is regularly required in enterprise customer contracts.

Where you'll see it

Vendor contractQuotePolicyApplication

Why it matters for your business

  • The core professional-liability line for SaaS, AI, and platform companies.
  • Responds when your software fails, breaches an SLA, or causes a customer a financial loss, which GL excludes.
  • Often combined with cyber liability, since a tech failure and a data incident frequently overlap.
  • Enterprise customers commonly require Tech E&O (often with cyber) before signing.

People also ask

What is Technology E&O (Tech E&O) insurance?

Tech E&O is professional liability built for technology companies. It covers claims that your software, platform, or tech service failed, contained an error, or caused a client a financial loss, such as an outage that breaches an SLA or a bug that corrupts data. It is often packaged with cyber liability on one policy.

What is the difference between Tech E&O and cyber insurance?

Tech E&O covers third-party claims that your technology failed or underperformed and cost a client money. Cyber insurance covers the costs of a data breach or network security incident, forensics, notification, and liability. Because a technology failure and a data incident often overlap, many insurers combine the two into a single Tech E&O + Cyber form.

Do SaaS and AI startups need Tech E&O?

Yes. If your product processes data, carries SLA commitments, or integrates with customer systems, a failure can trigger a client claim that only Tech E&O responds to, General Liability specifically excludes it. Enterprise customers frequently require Tech E&O (usually with cyber) in the contract before they will sign.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.