Technology Errors and Omissions: Coverage for the Claim That Starts With "Your Software Cost Us Money"
Tech E&O insurance — also called technology errors and omissions insurance or professional liability for technology companies — responds when a client alleges that your product or service failed to perform as promised. That includes claims tied to software bugs, implementation failures, missed deliverables, or consulting advice that a client says led to a financial loss.
This is the coverage that matters when a contract dispute turns into a lawsuit. It applies whether you're a SaaS company, a managed service provider, a software developer, or a technology consultant. If your work product can be blamed for a client's loss, tech E&O is what responds.
We place tech E&O coverage through our management liability programs, which also address directors and officers liability, employment practices liability, and related exposures. If you want to understand how that coverage is structured, the management liability page covers it in full.
Technology companies carry exposures that standard commercial policies weren't designed to address. When a client claims your software caused a system failure, a data breach exposes customer records, or a distributed team creates cross-border liability questions, the gaps in a generic policy become visible fast. BTC Insurance Services works exclusively in commercial insurance, and we structure technology programs around the actual risk profile of your business — not a one-size-fits-all package built for a different industry.
The two coverages that matter most for most technology businesses are technology errors and omissions and cyber liability. These aren't add-ons we bolt onto a standard policy. They're the foundation of how we build coverage for technology clients, and we evaluate both together because the claims that hit technology companies rarely fit neatly into one category.
Why Technology Businesses Face a Different Kind of Risk
How BTC Evaluates a Technology Company's Specific Exposure
Most national carriers apply broad technology classifications that don't account for how differently a cybersecurity firm operates versus a SaaS startup versus a hardware integrator. When we review a technology company's risk, we work through several dimensions before recommending a program structure:
- What your product or service actually does — and what a client could credibly claim it failed to do
- Who your clients are and what their contracts require — enterprise clients often impose specific insurance requirements that affect coverage structure
- How your revenue is generated — subscription, project-based, consulting, or product sales each carry different liability patterns
- Where your team operates — remote employees, contractors, and overseas team members affect which policies apply and how
- What data you handle — the type and volume of data you process determines how cyber liability coverage should be sized
- Whether you have physical assets — commercial property and equipment coverage needs vary widely across technology businesses
This review process is what allows us to recommend coverage that matches your actual exposure rather than a standard technology classification that may leave meaningful gaps.
Small Doesn't Mean Low-Risk — and Coverage Can Be Sized Accordingly
One of the most common conversations we have with technology founders and early-stage companies is some version of: "We're too small to be a real target." That assumption is worth examining.
Cyber liability claims don't scale with headcount. A small software company that handles client data, processes payments, or integrates with third-party systems carries real cyber exposure regardless of how many employees are on payroll. The same is true for tech E&O — a client threatening litigation over a failed implementation doesn't care how large your company is.
What does scale is the cost of coverage. Insurance for a small technology startup is generally priced to reflect a smaller revenue base and a narrower scope of operations. The coverage doesn't have to be expensive to be meaningful. Our job is to right-size the program to your current risk profile while building in flexibility as your business grows.
We place cyber liability coverage through our dedicated cyber liability program, which is structured for businesses of varying size and data exposure.
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Frequently Asked Questions About Technology Company Insurance
Does a software company need professional liability insurance?
Yes. If your software, platform, or technology service can be blamed for a client's financial loss, professional liability — structured as tech E&O for technology companies — is the coverage that responds. Most enterprise contracts require it, and many technology companies face claims before they think to ask the question.Yes. If your software, platform, or technology service can be blamed for a client's financial loss, professional liability — structured as tech E&O for technology companies — is the coverage that responds. Most enterprise contracts require it, and many technology companies face claims before they think to ask the question.What is the difference between tech E&O and cyber liability for a technology company?
Tech E&O covers claims that your product or service failed to perform as promised — a software bug, a missed deliverable, a consulting recommendation that went wrong. Cyber liability covers claims arising from a data breach, ransomware event, or failure to protect sensitive information. The two coverages are related but distinct, and technology companies typically need both.Tech E&O covers claims that your product or service failed to perform as promised — a software bug, a missed deliverable, a consulting recommendation that went wrong. Cyber liability covers claims arising from a data breach, ransomware event, or failure to protect sensitive information. The two coverages are related but distinct, and technology companies typically need both.What insurance does a small technology startup need?
At minimum, most technology startups need general liability, tech E&O, and cyber liability. Depending on whether you have employees, physical space, company vehicles, or client contracts with specific requirements, workers' compensation, commercial property, and commercial auto may also apply. We evaluate each company individually rather than applying a standard startup package.At minimum, most technology startups need general liability, tech E&O, and cyber liability. Depending on whether you have employees, physical space, company vehicles, or client contracts with specific requirements, workers' compensation, commercial property, and commercial auto may also apply. We evaluate each company individually rather than applying a standard startup package.How does having a distributed team or overseas contractors affect my insurance?
It matters more than most business owners expect. U.S. commercial policies typically have geographic limitations, and operations that extend outside the country — including remote employees, overseas contractors, or international client engagements — can create coverage gaps. For technology companies with distributed or global operations, we pair the core technology program with international business insurance to address those exposures directly.It matters more than most business owners expect. U.S. commercial policies typically have geographic limitations, and operations that extend outside the country — including remote employees, overseas contractors, or international client engagements — can create coverage gaps. For technology companies with distributed or global operations, we pair the core technology program with international business insurance to address those exposures directly.Does BTC Insurance Services work with technology companies outside of Utah?
Yes. BTC is licensed across nearly 40 states and works with technology companies nationwide. Our headquarters is in South Jordan, Utah, but the majority of our commercial clients operate outside the state or across multiple states.Yes. BTC is licensed across nearly 40 states and works with technology companies nationwide. Our headquarters is in South Jordan, Utah, but the majority of our commercial clients operate outside the state or across multiple states.
Talk to BTC About Your Technology Company's Coverage
Technology insurance isn't a product you pull off a shelf. The right program depends on what your company does, how it generates revenue, who it serves, and where its operations reach. We work through those questions with every technology client before recommending a structure — and the same producer and account manager stay with you through renewals, claims, and changes in your business.
To start a conversation, call us at 801-327-0117, Monday through Thursday 8:00 AM–4:30 PM MST or Friday 8:00 AM–3:00 PM MST. You can also request a quote online and we'll follow up directly.
