Most IT and tech businesses purchase technology errors and omissions insurance (tech E&O), which includes cyber liability insurance. Tech E&O costs a median of $61 per month, or $728 annually, for TechInsurance customers. The median better illustrates what you can expect to pay since the average values include high and low extremes.
Among tech companies that purchase this policy, 36% pay less than $700 per year and 47% pay between $700 and $1,400 per year. The cost depends on your tech company’s size, your profession, your claims history, and other factors.
Most IT and tech businesses (63%) choose errors and omissions policies with a $1 million per-occurrence limit and a $1 million aggregate limit. That means the policy has:
Tech companies that deal with risky clients or provide services that are essential to another company’s operations should consider higher policy limits to compensate for the additional risk. Higher limits cost more, but you can receive a higher payout on a claim.
To save money on E&O insurance, your tech business can:
Pay your annual premium in full. When you purchase a policy, you can pay your premium in monthly or annual installments. The annual premium often costs less than paying month by month.
Manage your risks. Tech companies with no previous claims on their insurance can expect to pay less for errors and omissions insurance. Business owners can avoid claims with a risk management strategy targeting E&O risks. That could include: