Cyber Insurance VS Technology Errors & Omissions

Cyber Insurance VS Technology Errors & Omissions

Who needs Cyber Liability Insurance and who needs Technology Errors & Omissions Insurance?

All Companies should have Cyber Insurance. 

Not all Companies need Tech E&O Insurance


Many businesses rely on technology to function. With that comes a lot of opportunities for something to go wrong. Insurance is a great way to protect against a lot of these problems.

Getting the right insurance is the tricky part.

Understanding a little about what each type of policy does can help.


Cyber Insurance

Every company that uses technology as part of its day-to-day operations should have a Cyber Liability Insurance Policy, especially if they are storing any kind of client information.

Cyber Liability Insurance protects against a variety of problems that arise during a data breach.

Examples of Costs that CAN be Covered on a Cyber Liability Policy. (More on this Here)

  1. Customer Outreach (notification costs)

  2. Call Center Support for your customers

  3. Reputation Management

  4. Computer Forensics

  5. Regulatory Expenses

  6. Extortion or Ransom Payments

  7. Damage to your Software or Network

  8. Lost Income

  9. Data Rebuild

  10. Electronic Theft of your Financial Assets/ Electronic Fraud

These are just some of the expenses that can be covered by a Cyber Insurance Policy. 


Technology E&O Insurance plays a different role.


It often includes many of the coverages of a Cyber Liability Insurance Policy.

Most businesses have a common General Liability Policy.


This is meant to cover damages that result in Property Damage and Bodily Injury. 

Technology E&O Insurance is intended to cover incidents that result from an error or omission by the insured business that results in an economic or financial loss to a third party

Technology E&O Insurance covers businesses that provide technology services to others such as:

  1. Internet Service or Access Providers

  2. Web Designers and Consultants

  3. IT Service Companies

  4. Software Developers

  5. Data Storage Companies


Some examples include:

  • A programming error from a web consultant disrupts a client's website and does not allow them to transact business, as usual, resulting in a loss of income and or clients.

  • An IT service provider fails to install patches in a timely manner resulting in a security breach for their client.

In both of these cases, a mistake (error or omission) in providing their service led to their client having a claim that would result in “economic or financial loss”.

A qualified Insurance Agent can help you decide what coverages your business needs.


Questions? Ask us here