Tech E&O and Cyber Insurance for Small Tech Companies and Startups

Tech E&O and cyber liability coverage for SaaS, AI, MSP, and IT companies that need contract-ready protection for customers, vendors, and investors. We help small tech teams get a clean, properly structured program without the back-and-forth.

We regularly place Tech E&O and cyber programs for SaaS, AI, MSP, and IT companies that need smooth underwriting and fast turnaround.

Trusted by SaaS, AI, MSP, and IT companies across the U.S.

What Tech E&O Insurance Covers

Technology Errors and Omissions protects your company when a client claims your software, service, or platform caused them a financial loss. It responds to issues tied directly to your work and how it performs.

It typically responds to situations like system failures, bugs, outages, missed deadlines, or mistakes in your code or implementation. It can also address contract disputes tied to your work product.

Coverage always depends on the actual policy wording, but most tech companies need Tech E&O to satisfy customer, vendor, or investor requirements.

What Cyber Liability Insurance Covers

Cyber liability responds when your company experiences a data breach, ransomware attack, or another security event that disrupts operations or exposes sensitive information.

It generally covers breach response, forensics, legal and notification costs, business interruption from cyber events, ransomware, and liability for data loss or privacy violations. It also helps with the cost of restoring your systems and responding to security failures.

Cyber and Tech E&O complement each other, and many contracts require them as separate policies.

Key Coverage Features in Tech E&O and Cyber Policies

Key Features Found in Modern Tech E&O and Cyber Policies

Tech companies often rely on the same core set of coverages and endorsements when building a clean E&O and cyber program. These are some of the features you will see across the market. The details always depend on the specific carrier and the wording of the policy.

Professional Services
Defines what the policy considers your work or service. This is the most important part of any Tech E&O policy.

Media liability
Responds to claims tied to digital content, copyright issues, and online materials in your product or platform.

System failure
Applies to outages, downtime, or performance issues that are not caused by a security breach. Helpful for SaaS and API providers.

Network security
Responds to unauthorized access, malware events, and transmission of malicious code.

Privacy liability
Covers claims that stem from the unauthorized access, collection, or disclosure of personal information.

Regulatory support
Helps if you must deal with a regulatory body, privacy authority, or state notification requirements after a breach.

Incident response and forensics
Covers the cost of identifying what happened, containing the event, and guiding you through the response.

Business interruption
Applies when a covered cyber event shuts down your operations or impacts revenue.

Contingent business interruption
Responds when a third-party vendor or cloud provider is impacted and your business is affected as a result.

Social engineering and funds transfer fraud
May cover losses from phishing or fraudulent payment instructions, depending on the carrier and endorsements purchased.

Breach response and notification
Covers legal counsel, required notifications, credit monitoring where applicable, and restoration costs.

These features vary by insurer. Each carrier handles definitions, exclusions, and sublimits differently, so the policy wording always controls coverage.

Why Work With WHINS for Tech E&O and Cyber

Many of our clients are SaaS, AI, MSP, and IT companies that need Tech E&O and cyber coverage for contracts, vendor onboarding, or investor diligence. Because we work with these companies daily, we understand how the coverage should be structured and what carriers look for when they underwrite technology risks.

We work directly with tech-focused underwriters at multiple carriers. This gives us the ability to compare options quickly and explain the trade-offs in plain language so you can make a clear decision.

If you are dealing with contract requirements, vendor agreements, or investor requests, we can review the insurance language with you and coordinate with the carrier to make sure your coverage aligns with what they are asking for.

Tech E&O vs Cyber Liability: What Each Policy Covers

E&O and cyber respond to very different situations. Most tech companies need both because client contracts usually require each line separately.

Scenario	Tech E&O	Cyber
Your code fails and causes financial loss to a client	Often covered	Not covered
A ransomware attack locks your systems	Not covered	Often covered
A client sues your company for negligence or breach of contract	Often covered	Not covered
A data breach exposes customer data	Not covered	Often covered
A contract requires specific E&O and cyber limits	Meets professional liability requirement	Meets data and security requirement
You accidentally delete a client database during an implementation	May be covered, depending on wording	Not covered

These policies are designed to complement each other. One covers how your product or service performs. The other covers how your systems and data are impacted by cyber events.

Real-World Tech E&O Claim Examples

These examples are for general illustration only. Coverage always follows the wording of the issued policy.

Software update failure
A routine update introduces a bug that corrupts customer data and causes the client to lose revenue. They demand reimbursement for lost income and recovery costs. Tech E&O helps respond to the claim, subject to policy terms.

API outage
Your API is down for several hours, and a customer’s platform fails as a result. They pursue damages for downtime and service credits owed to their own clients.

Implementation mistake
A misconfigured integration causes a client’s system to malfunction. The client pursues compensation for the financial impact and recovery work.

Missed deadlines
A development delay forces a client to postpone a launch. E&O may help defend the claim depending on the circumstances and policy language, especially when tied to specific service level commitments in the contract.

Real-World Cyber Insurance Claim Examples

These examples are also general and not tied to any specific carrier.

Ransomware attack
Your company cannot access its systems, and attackers demand payment. Cyber insurance helps coordinate the response, forensic analysis, legal guidance, and system restoration, subject to the policy wording.

Phishing and funds transfer loss
An employee is tricked into sending money to a fraudulent account. Cyber coverage may help, depending on the policy structure and any crime or social engineering endorsements.

Data breach
Customer personal information or health information is accessed without authorization. Cyber insurance helps with legal counsel, forensics, required notifications, credit monitoring where applicable, and restoration.

Vendor breach
A third party you rely on is compromised, and you are pulled into the event. Cyber insurance can assist with response and coordination, especially when clients view you as responsible in their contracts.

Who Needs Tech E&O and Cyber Insurance

Most early stage and growing tech companies need both Tech E&O and cyber, especially when they:

• Sign contracts with business clients
• Process or store customer data
• Provide software, APIs, or integrations
• Support B2B operations
• Work with financial, medical, or enterprise customers
• Seek investment or go through due diligence
• Pursue SOC 2 or similar security audits
• Use cloud vendors and other third parties that expect cyber coverage

SaaS companies, software developers, consultants, AI firms, MSPs, and IT professionals are all common buyers of this coverage.

Why Clients, Vendors, and Investors Require Tech E&O and Cyber Insurance

Many clients require proof of Tech E&O and cyber insurance before signing a contract. Requirements often include:

• Minimum E&O and cyber limits
• Additional insured endorsements
• Waiver of subrogation
• Primary and noncontributory wording
• Evidence that certain sublimits or exclusions do not apply

Investors look for organized risk management and may request these policies to protect operations, financial stability, and continuity during diligence. A clean insurance program can make the process smoother and reduce last minute surprises.

Tech E&O and Cyber Insurance Pricing

Pricing varies by carrier, limit, retention, coverage form, and the underwriting information provided. These ranges are only general illustrations.

If you want exact pricing for your company based on your revenue, contracts, and security controls, you can start a Tech E&O & Cyber quote.

We work directly with tech-focused underwriters, which helps speed up quoting and avoid unnecessary back-and-forth.

What Underwriters Ask For

A typical submission includes:

• Website and a brief description of your product or service
• Revenue and projected growth
• Use cases and target industries
• Data exposure and types of information you handle
• Recent claims or incidents
• Contract requirements from key clients
• Security controls such as MFA, backups, and vendor management

Some carriers also review your incident response plan or SOC 2 materials, especially at higher revenue levels or with more sensitive data.

Building a Clean Tech E&O and Cyber Program

When structuring coverage, it helps to think of the program as a set of coordinated protections:

• Tech E&O for professional mistakes and performance issues
• Cyber for data and security incidents
• EPLI for employment related risks
• D&O for management and governance risks
• Crime for fraud and funds loss
• Workers compensation for employees
• Property and general liability for offices and equipment

Many of these coverages can be bundled into a broader business insurance package that fits your overall operations.

Tech companies grow quickly. A clean insurance program supports that growth and makes contract negotiations smoother when clients or investors review your risk profile.

It also helps to review other financial and regulatory exposures that can affect your business. For example, companies that receive 1099 income, K-1 income, or handle complex filings sometimes explore IRS audit insurance as a separate protection for tax related matters. It is not tied to Tech E&O or cyber, but it can support your broader risk planning.

 

If you want help reviewing options for your tech company, we’re happy to walk through everything with you and answer any questions.

Start a Tech E&O and Cyber quote

Frequently Asked Questions

Do I really need both Tech E&O and cyber insurance?

Most tech companies need both. Tech E&O responds when a client claims your product or service caused financial loss. Cyber responds when you have a data breach, ransomware attack, or other security event. Client contracts often require each line separately.

Is Tech E&O the same as professional liability?

Tech E&O is a form of professional liability tailored to technology products and services. It focuses on how your software, platform, or service performs and how that performance impacts your clients financially.

How much Tech E&O and cyber limit do I need?

Limit selection depends on your contracts, revenue, and risk tolerance. Some clients set minimum limits in their agreements. Many small tech companies start with $1,000,000 per claim and increase from there as they grow. The right limit depends on your specific situation.

Will my general liability policy cover software or data problems?

General liability insurance is usually designed for bodily injury, property damage, and premises exposures, not for software failures or data breaches. This is why dedicated Tech E&O and cyber policies exist.

Does this replace my lawyer or security team?

No. Tech E&O and cyber insurance are financial tools. They help with the cost of defending claims and responding to incidents. They do not replace your legal counsel, security team, or internal controls.

Disclaimer

This page is for general information only and does not provide tax, legal, or financial advice. Tech E&O and cyber insurance coverage vary by carrier and by policy. All coverage is governed by the actual terms, conditions, exclusions, and endorsements of the issued policy. Please review the full policy wording and consult with your professional advisors to determine what is appropriate for your situation.