How much does tech E&O cost?

Pricing depends on revenue, services performed, contract sizes, limits, and claims history. Many early-stage firms buy $1M limits, and hardware or AI work typically increases premium. All figures are subject to underwriting.

Do I need both tech E&O and cyber liability?

Most technology firms do, because the two respond to different events. E&O responds to service failures; cyber responds to breaches and privacy claims.

Does tech E&O cover AI services?

Only if the form does not exclude them. Many carriers now exclude or restrict AI-related work, so confirm the wording in writing before relying on coverage.

What is tech E&O insurance?

Short answer

Tech E&O is professional liability for software, SaaS, IT services, and AI companies. It responds when a client alleges your product or service failed to perform as promised, and it usually excludes data breaches, which are handled by cyber liability.

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What tech E&O covers

Failed deliverables, missed deadlines, and implementation errors
Allegations that software did not perform as specified
Data loss caused by a service failure, where the form includes it
Defense costs, which usually erode the policy limit
Contractual liability, when assumed in a written agreement and not excluded

What tech E&O does not cover

Most forms exclude data breaches, ransomware, and privacy claims, which belong to cyber liability. Hardware defects may need product liability, and employment claims need EPLI. AI-related work is increasingly excluded or restricted, so ask for the AI wording specifically.

When to buy it

Before the first paid engagement or pilot, because claims-made coverage does not reach back to work performed while uninsured. Enterprise clients also require certificates with specific limits before work begins.

Common questions

How much does tech E&O cost?: Pricing depends on revenue, services performed, contract sizes, limits, and claims history. Many early-stage firms buy $1M limits, and hardware or AI work typically increases premium. All figures are subject to underwriting.
Do I need both tech E&O and cyber liability?: Most technology firms do, because the two respond to different events. E&O responds to service failures; cyber responds to breaches and privacy claims.
Does tech E&O cover AI services?: Only if the form does not exclude them. Many carriers now exclude or restrict AI-related work, so confirm the wording in writing before relying on coverage.

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Tell us what you do and we will explain which coverage responds, which wording to check, and what to ask a carrier. No obligation, and no coverage is bound by asking.

Professional Resource Insurance Agency, LLC. CA License #0G81238. Definitions are general information, not coverage advice for a specific policy.