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Errors and Omissions Insurance
Protect your tech company against lawsuits for mistakes and oversights.
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How much does errors and omissions insurance cost?

The cost of errors and omissions (or professional liability) insurance depends on the likelihood of your business being sued over the quality of your work.

Errors and omissions insurance cost for technology businesses

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.

Cost of errors and omissions insurance (E&O) for tech companies.
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Policy limits affect E&O insurance cost

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:

  • $1 million occurrence limit. This policy pays up to $1 million on any single claim.
  • $1 million aggregate limit. This policy pays up to $1 million on all claims.
Errors and omissions insurance (E&O) policy limits chosen by tech companies.

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.

Average and median costs of technology errors and omissions insurance by policy limits.

How to save money on E&O insurance

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 professional liability 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 exposures. That could include:

  • Comprehensive employee training
  • Careful evaluation of contracts before signing
  • A multi-step review process for code
  • A company protocol to minimize errors and oversights

What do tech companies pay for other policies?

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