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Errors and Omissions Insurance
Protect your tech company against lawsuits for mistakes and oversights.
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What is errors and omissions insurance?

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Errors and omissions insurance (E&O)

Errors and omissions insurance provides coverage when a client sues your tech company over a missed deadline, coding error, or other mistake or oversight.

Does your tech business need errors and omissions insurance?

If a client could sue your company over a mistake or oversight, you can benefit from errors and omissions insurance. E&O (also called professional liability insurance) offers crucial protection for IT consultants, project managers, and other IT and tech professionals who provide advice or expert services to their clients.

This policy is often bundled with cyber liability insurance in a package called technology E&O insurance, which includes coverage for lawsuits over data breaches and cyberattacks.

What does E&O insurance do?

When a client files a lawsuit because you missed a deadline, made a coding error, or broke the terms of a contract, E&O can help pay for:

  • Legal defense costs
  • Court-ordered judgments
  • Settlements

Because legal costs can escalate, E&O insurance is crucial for tech companies where a simple mistake can result in lost profits for a client – and a lawsuit for your company.

Learn more about E&O insurance coverage.

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Tech companies that purchase E&O insurance typically:

  • Offer expert advice to clients
  • Work on projects that are critical to a client’s success
  • Provide services that are vital to a client’s profits
  • Need to fulfill the terms of client contracts

How E&O insurance protects tech professionals

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Software developers

If a software developer has an error in code that impacts a client negatively, the result could be a lawsuit.

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IT consultants

Poor advice from an IT consultant about which programs or services to use could be devastating for a client's business.

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Project managers

When a project manager misses a deadline, the project could cost more than it was budgeted for. Even worse, it could fail to launch at a critical time. Mistakes made by subcontractors can also lead to lawsuits.

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Web hosting companies

Web hosting companies provide a key service for e-commerce businesses and other companies whose success depends on their online presence or services. If your clients experience downtime, they could sue your web hosting company for failing to provide the services they need to operate.

Errors and omissions insurance costs

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E&O insurance protects professionals who provide expert advice or specialized services. The cost depends on:

  • Your profession’s level of risk
  • Policy limits you choose
  • Number of employees
  • Past claims history

Errors and omissions insurance costs about $60 per month. 36% of TechInsurance customers pay less than $700 per year.

View E&O Insurance Costs

Learn more about E&O insurance

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