Technology Errors and Omissions / Cyber (commonly called Tech E&O / Cyber) insurance is specialized insurance is specialized coverage protecting tech companies from financial loss due to both errors and omissions and cyber events. When a client claims damages due to a product or service failure, Tech E&O / Cyber steps in to cover legal costs and settlements.
By shielding your business from lawsuits, you can focus on innovation and growth.
Embroker offers tailored Tech E&O / Cyber solutions designed specifically for tech companies. Our deep industry knowledge, combined with a user-friendly platform, makes getting the right coverage quick and easy.
Essential for covering costs from data breaches, cyber theft, and cyber vandalism.
Covers issues caused by product mistakes affecting many customers.
Protects against lawsuits from unmet contractual obligations and resulting financial losses.
Criminal activity or illegal acts
Financial insolvency
Copyright infringement or libel claims
Intellectual property infringement
Skip the hassle — get Tech E&O / Cyber insurance the easy way and protect your business with tailored coverage.
Get a quote and buy your policy right away through our digital platform. Get covered in a minutes, not days.
Package Technology Errors and Omissions / Cyber insurance with other essential coverages, such as D&O and Workers Compensation.
Benefit from our team's in-depth knowledge of common industry risks and insurance needs.
Embroker has published a bunch of great resources to help you on your insurance buying journey. Check out the Embroker Resource Hub for articles on coverage, guidance on insurance costs, and what you’ll need to get a quote.
You can also connect with a broker at any time to get help identifying your coverage gaps.
Professional liability will not cover claims that are the direct result of you or your employees engaging in criminal activity or illegal acts.
Financial insolvency is also not covered by a tech E&O policy.
Also, most professional liability policies will not cover copyright infringement or libel claims either. If you need this coverage, you should add intellectual property insurance to your company’s tech E&O coverage.
Risk management experts who specialize in providing the right coverage for technology companies commonly cite tech E&O insurance as one of the most important policies and an essential piece of the puzzle when putting together a good tech startup insurance package.
Tech E&O insurance was created to provide coverage for companies that are working in cutting-edge fields and offering services and products that can impact third parties in a way that requires a new, modern approach to assessing liability and providing coverage for risks that are less tangible and traditional.
Some examples industries and business that tech E&O insurance is most beneficial for:
That’s why it can be said that any company that offers any type of technology service or product should purchase this coverage.
Whether you are building websites for clients, providing cloud storage for third parties, creating and selling software as a service (SaaS) products, or even offering consulting services to technology companies, it would be wise to purchase tech errors & omissions coverage for your company.
Several factors influence the cost of your Tech E&O / Cyber insurance premium, including:
Excess insurance is a way to increase the amount of coverage you have for a given policy. If you need to file a claim with your current policy and your carrier pays 100% of what you are due, but you have more incurred costs than your primary policy covers, your excess policy can help cover these additional costs.
You may need excess for contractual compliance reasons or your business may provide a product or service with a high risk profile, increasing your need for protection in case of lawsuits and losses.
In today’s risk landscape more and more companies are exposed to technological and cyber risks than ever before. As businesses increasingly take advantage of the cloud, online platforms and tools, and 100% digital workflows, cyber and technological errors and omissions risk increase as well.
Data breaches, data loss, loss of transferred funds, and any court proceedings or lawsuits that ensue can interrupt business, and stunt the growth of your organization. Your existing Tech E&O and Cyber insurance policies might not be enough to cover what this evolving landscape has in store.
Additionally, startups with better insurance coverage are more attractive to investors. According to Embroker’s recent Cyber Risk Index Report, nearly half (49%) of startup founders cite cybersecurity insurance protections as required by their investors, their board or both. And a staggering 97% of founders discuss their cyber protections and issues with investors and board members — that’s how vital this coverage is to them.
In light of this, you may need excess for:
Excess Tech E&O / Cyber follows the form of your existing coverage. This means that the same risks outlined in your primary insurance policy are covered. For Embroker’s Excess Tech E&O / Cyber product, if the Underlying Aggregate Limit is $1M, you can apply for $1M or $2M excess limits; if the Underlying Aggregate Limit is $2M, you can apply for $1M, $2M or $3M excess limits, and so on.
No need to call multiple carriers and submit multiple applications to get A-rated excess coverage. Embroker’s 100% digital quoting experience allows users to add excess coverage to their standalone Tech E&O or Tech E&O + Cyber policies.
Luckily, Embroker accepts more than 30 primary insurance carriers, including insurtechs.
At a time where insurtechs are taking over an increasing stake in the business insurance market, Embroker’s ability to write over insurtechs is especially helpful. Embroker does just that, making the process of purchasing Excess coverage easy and efficient. Embroker is able to both match an existing limit or exceed it, depending on your risks and what you need.
First, you’ll need either an underlying Tech E&O + Cyber policy or a standalone Tech E&O policy from a carrier other than Embroker. (Please note: Users are not eligible to purchase standalone Excess Cyber.)
Also, Embroker’s excess coverage cannot be written over an Embroker primary policy, meaning you need to have a primary Tech E&O and Cyber policy from another carrier before applying for Excess.
Documents required:
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Explore real-world scenarios of how this coverage has supported businesses
A woman sued a financial planning firm for $3 million after following their advice to quit her job, start a home business and transfer her savings into their pension plan.
Pop superstar Rihanna won a $10 million settlement after her accountant gave her bad advice which led to her "squandering $9 million in one year."
A parish in New Orleans settled for $1.3 million with Wisznia Associates over a building project that doubled in cost to $50.7 million and was delayed. Wisznia's insurance, capped at $1 million, prioritized their defense counsel.
A real estate agent to the stars faced a lawsuit over accusations he overstated the square footage of a multimillion-dollar mansion.
