In today’s digital-first world, technology underpins virtually every industry. From cloud service providers to software developers, tech companies play a crucial role in modern business operations. However, with this reliance comes a significant exposure to risk via errors, omissions, or contractual disputes. This is where Technology Errors & Omissions (Tech E&O) insurance steps in—a product designed to protect tech businesses against liabilities that some cyber policies might not cover.
As a broker, you may find selling Tech E&O to be a complex process. Unlike cyber insurance, which typically covers data breaches and system disruptions depending on the provider, Tech E&O extends to contractual liabilities, professional service failures, and financial loss caused by technology malfunctions or misrepresentations. To demystify this product and help brokers confidently advise clients, we spoke to Adelle Gruber, our Class Underwriter for Global Cyber, Privacy, and Technology. She’s here to unpack what Tech E&O covers, who needs it, and why it’s essential.
What is Tech E&O insurance and how does it differ from cyber insurance?
A Tech E&O policy covers financial losses arising from a tech company’s failure to deliver on its contractual obligations. Adelle sums it up in her own words:
Tech E&O policies cover tech companies for breach of contract or any failure of their technology or professional services to conform with specifications. It also extends to failures to comply with statutory terms concerning quality, safety, and fitness for purpose.
While a cyber insurance policy typically covers losses related to data breaches, ransomware attacks, and regulatory fines, Tech E&O cover goes further to address third-party liability. If a technology provider fails to deliver on their contract, causing financial harm to their client, Tech E&O is what steps in to cover the damages.
A theoretical example could come from a software company developing a payment processing system for a retailer. If the software malfunctions and prevents the retailer from processing sales, the retailer could sue the software provider for lost revenue. A Tech E&O policy would cover the provider’s legal defence and any potential settlement costs.
Who needs Tech E&O insurance?
Tech E&O isn’t just for traditional IT firms—it applies to a broad range of businesses that develop, implement, or manage technology. Companies that should consider Tech E&O include:
- Software developers (e.g., fintech platforms, HR management systems)
- Cloud service providers (e.g., AWS, Microsoft Azure alternatives)
- IT consultants and managed service providers
- Business process outsourcing firms
- Hardware developers and technology manufacturers
Adelle explains the importance of Tech E&O further:
“Technology is embedded in so many industries today. Whether it's a recruitment platform, a financial transactions system, or a cloud service provider, all these businesses carry professional liability exposure that Tech E&O is designed to cover.”
Real-world Tech E&O examples
Tech E&O claims arise when businesses suffer financial loss due to technology failures or service misrepresentation. One of the most high-profile examples is the CrowdStrike incident:
CrowdStrike Outage
In 2024, a routine software update from CrowdStrike led to a widespread system failure affecting countless businesses globally. Hospitals, financial institutions, and e-commerce platforms were just some of the services faced with significant downtime, costing millions in lost revenue.
Another high-profile example is the legal battle between Oracle and Google, which began in 2010.
Oracle vs. Google
Oracle accused Google of infringing its intellectual property by using parts of the Java platform without permission. Google argued the usage fell under fair use. In 2018, the United States Court of Appeals for the Federal Circuit sided with Oracle. The company is pursuing damages in excess of $8 billion, while Google has taken the matter to the US Supreme Court. The legal battle, which spanned nearly a decade, has demanded significant time, money, and effort from both sides.
The evolving risks that make Tech E&O essential in 2025 and beyond
As technology continues to evolve, so do the risks that businesses face. Adelle shares her view around several key trends driving the increased need for Tech E&O coverage:
We’re seeing targeted attacks on IT service providers becoming more frequent. Ransomware groups are no longer just going after big corporations—they're infiltrating third-party service providers to gain access to a network of clients. This means tech companies face not just direct cyber risks, but also liability risks if their failure impacts multiple clients.
Other emerging threats include:
Increased reliance on AI and automation
Companies incorporating AI into their services risk potential liability if algorithms cause errors, bias, or financial loss for clients.
Regulatory scrutiny on data privacy
Companies incorporating AI into their services risk potential liability if algorithms cause errors, bias, or financial loss for clients.
Cloud-based outages and supply chain vulnerabilities
As businesses move further into cloud-dependent models, a single outage can trigger widespread financial losses and contractual disputes.
Adelle is quick to add that brokers should learn from the recent past:
The lesson from the CrowdStrike outage is clear—clients expect accountability when technology fails. Businesses that depend on IT providers will continue to demand contractual protection, making Tech E&O a critical part of risk management for the industry.
The benefits of partnering with Brit
Our Tech E&O team is built on deep industry expertise. We bring together specialists who understand both the insurance and technology landscapes, ensuring that businesses receive tailored and effective coverage.
Adelle’s role has evolved significantly as the landscape has developed:
“When I started in insurance, cyber was just a tiny sublimit within Tech E&O policies. Over the years, we’ve seen the risks evolve, and we’ve grown our team accordingly. We don’t just look at policies—we work closely with brokers and clients to ensure we’re addressing real-world exposures.”
Our team members come from diverse professional backgrounds, including insurance, technology, law, and finance. This diversity enables us to ask the right questions, ensuring that our clients are protected from emerging risks. Adelle continues:
“We focus on long-term relationships. Whether it’s helping a broker navigate a complex tech risk or supporting a client through a claim, we believe in standing by our partners,” For brokers who feel uncertain about selling Tech E&O, her advice is simple: “Just give us a call. We can talk through a client’s risks, help brokers understand coverage, and guide them through the process. You don’t need to be a tech expert—we’re here to help.”
We offer more than just policies—we provide brokers with expert insights, deep industry knowledge, and access to an underwriting team that truly understands technology risks. We have over 20 years of experience in cyber insurance, and we currently insure 40% of the Fortune 500, giving us unparalleled expertise in complex and evolving tech risks.
Why work with us?
Specialist Tech & Cyber Underwriters
We don’t take a one-size-fits-all approach; our dedicated team tailors cover to fit each client’s risk profile.
Comprehensive Risk Assessments
We work closely with brokers to analyse their clients’ specific risks, ensuring the right protection is in place.
Expert Claims Support
Our award-winning claims team is known for fast, transparent, and fair handling, helping businesses get back on track quickly.
Integrated Cyber & Tech E&O Solutions
We offer policies that combine Tech E&O with cyber insurance, ensuring businesses are protected from all angles.
Proactive Risk Mitigation
We help businesses identify vulnerabilities before they lead to claims, offering best-practice guidance and proactive loss prevention support.
Adelle and the rest of her team are on hand to help brokers navigate the complexities of Tech E&O and provide best-in-class solutions to their clients. If you have questions or want to discuss a risk, reach out to our XDR Pro Tech team to find the right protection for your client.
