Technology Errors & Omissions Insurance
Professional liability coverage for software, IT services, and technology consulting work.
This is an estimate, not a bound policy — a licensed VAB producer confirms final terms before coverage starts. Sgt. Savings can answer questions but can't quote, bind, or guarantee coverage.
If your business writes code, integrates systems, hosts data, or advises clients on technology, a mistake in that work can trigger a lawsuit no general liability policy responds to. Technology Errors & Omissions Insurance covers claims that your professional services — not your product, your advice — caused a client financial loss. It's built for software developers, IT consultants, systems integrators, and managed service providers.
Who This Is Really For
The ideal buyer.
The ideal buyer is a small-to-midsize IT services or software shop that has landed a larger enterprise client and is now facing contract language requiring proof of professional liability coverage before the statement of work gets countersigned. They've probably been running on general liability alone, assuming it covers everything, and only discovered the gap when a client's procurement team kicked back their certificate of insurance. Because their real exposure is entirely about professional judgment — a bad migration, a missed spec, a delayed deployment — rather than physical injury or property damage, they need a policy built around financial-loss claims and defense costs, not the accident-based trigger general liability is built for. This buyer is often weighing a broader cyber policy at the same time and needs to understand these are two complementary exposures, not overlapping ones.
- Software development and custom application shops
- IT consultants and systems integrators who touch client infrastructure
- Managed service providers (MSPs) handling data hosting, processing, or technical support
- Systems analysts and technical support firms with contractual SLAs
- Any tech company whose client contracts require proof of professional liability coverage
- Startups building software for clients under fixed-scope statements of work
What It Covers
Coverage, broken down.
Professional services liability
Covers claims that your technology consulting, software design, development, customization, integration, testing, maintenance, systems analysis, or technical support work caused a client a financial loss.
Data and systems compromise carve-back
Even though this isn't a cyber policy, it responds when your own negligent error or omission causes a client's data or systems to be compromised — a gap most standalone tech contracts assume is covered and isn't.
Unintentional IP infringement in your work product
Covers claims of unintentional copyright or trademark infringement that show up in the deliverables you render for a client — a logo element, code snippet, or design asset that turns out not to be properly licensed.
Defense costs
Legal defense is provided for covered claims, which matters most here — even a claim that eventually goes nowhere can cost tens of thousands of dollars to defend.
Illustrative Scenario — How This Coverage Responds
Illustrative scenario — a botched system migration
An IT integrator is hired to migrate a client's customer database to a new platform. A configuration error during the migration corrupts a portion of the client's records, and the client claims lost business while they rebuild the data. The client sues for the cost of reconstruction and lost revenue during the outage. Technology E&O responds to the claim and defense costs because the loss traces back to a negligent act in the integrator's professional services — not a product defect and not a cyberattack.
Illustrative example for education only — not a claim outcome or a promise of payment. Every claim depends on the actual policy issued and its terms.
More Than One Way In
More scenarios.
Real coverage doesn't fit one story. Here's who else this shows up for.
The client contract gate
A 12-person software consultancy is about to sign its first six-figure enterprise contract, but the client's legal team won't countersign until they receive a certificate of insurance showing professional liability coverage at a specified limit. The founder has general liability but nothing that satisfies the requirement, and the deal is on hold until coverage is bound.
The scope-creep dispute
An MSP is contracted for a defined server migration, but undocumented verbal changes to scope during the project lead to a dispute over what was actually promised once the client's systems don't perform as expected post-migration. The client alleges negligent execution and withholds final payment while threatening suit.
The subcontracted developer's error
A software shop brings on a subcontracted developer to hit a deadline, and a coding error the subcontractor introduces ships to production, causing a client-facing outage. The client's lawyers name the primary contracting firm, not the subcontractor, since that's who they signed with.
Know The Gaps
What this doesn't cover.
Every policy has limits. Knowing them before you buy is how you avoid a denied claim later.
First-party breach response costs
Notification, credit monitoring, forensics, and ransom payments after your OWN systems are breached aren't covered here — that's a cyber liability policy's job. This line only covers claims a client brings against you.
Media, advertising, publishing, or broadcasting activity
If your company also produces marketing content or media for clients, that exposure needs its own coverage — this line is scoped to technical services, not content creation.
Hardware manufacture or sale
This is a services line. A company that also builds or resells physical hardware needs product liability coverage for that side of the business.
Patent infringement and trade secret misappropriation
These stay excluded even with the IP carve-back — the coverage is for unintentional copyright/trademark issues in your deliverables, not patent disputes, which are a different and far more expensive class of claim.
Behind The Quote
What goes into the decision.
What actually moves your price and your approval — no black box.
The specific services in your statement of work
Underwriting prices around what you actually do — development, hosting, and advisory work carry different loss patterns, and a firm that touches client production infrastructure is priced differently than one delivering advisory reports only.
How your client contracts are structured
Firms with clearly scoped statements of work and limitation-of-liability clauses present a cleaner claims picture than those working off verbal agreements or open-ended retainers — tightening contract language before binding can improve terms.
Client-required coverage limits
Many enterprise contracts specify a minimum per-claim or aggregate limit as a condition of doing business — naming the actual limit your contracts require up front avoids binding a policy that doesn't satisfy the clause you needed it for.
Whether the business also sells hardware or produces media content
Those activities sit outside this policy's scope, so disclosing them up front lets the right combination of coverage get placed instead of leaving a gap discovered only after a claim.
Getting Covered
How it actually works.
- Tell us what technology services your company actually performs — development, hosting, integration, support, or a mix.
- We match you to a policy scoped to your professional services and any client-contract minimums you need to meet.
- If a client claims your work caused them a loss, you report the claim and defense counsel is assigned.
- Coverage responds to the claim and defense costs per your policy terms.
Let's get you covered.
Tell us what you need on Technology Errors & Omissions Insurance — a licensed VAB advisor follows up personally. No bots, no runaround.
Looking for a session that's already scheduled? Browse upcoming webinars.
Availability
Available to technology companies nationwide, placed and administered state by state.
Questions, answered straight
No jargon on technology errors & omissions insurance — just what you're actually asking.
Not the first-party costs of responding to your own breach — that's cyber liability. This line covers a client's claim that your negligent work caused their data or systems to be compromised, which is a different trigger.
Yes, this is exactly the kind of policy those contract clauses are asking for. We can provide a certificate of insurance once you're bound.
This line covers the services side — development, integration, support. Hardware manufacture or sale isn't covered under this policy and would need separate product liability coverage.
Unintentional copyright or trademark infringement that shows up in your rendered work product is carved back into coverage. Deliberate infringement isn't covered, and patent disputes stay excluded regardless.
No. General liability covers bodily injury and property damage from your operations. This covers financial loss a client claims resulted from your professional advice or technical work — a fundamentally different exposure most tech companies actually face more often.
Beyond This Coverage
What people in your situation also need.
Business Banking
A tech services firm binding professional liability for the first time is a natural fit for VAB's core business banking relationship.
ExploreEquipment Financing
Development shops and MSPs often need to finance servers, workstations, or hosting infrastructure as they scale client work.
ExplorePayroll
Growing tech firms adding developers and consultants to meet client demand need a payroll system that scales with headcount.
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Learn moreReady to talk it through?
Get a quote in minutes, or ask Sgt. Savings a straight question first — no pressure, no runaround.
Insurance products described on this page are marketed by The Veteran Alliance, a licensed insurance producer, and underwritten by one or more separately licensed insurance companies, which may include Corgi Insurance Company and its affiliates. The insurer that actually underwrites your policy, its licensing status in your state, and any state-required notices will be identified in your quote and policy documents. Coverage, limits, eligibility, and pricing are determined by the underwriting insurer, may vary by state, and may change. Nothing on this page is a quote, an offer of insurance, a binder, or a guarantee of coverage — coverage takes effect only when a policy is issued.