skip to main content
Travelers Logo
  • About
  • Careers
  • Agents
  • Investors
  • Sustainability
  • Contact Us
  • For Individuals
    • Overview
    • Products
      • Car
      • Home
      • Renters
      • Condo
      • Landlord
      • Boat & Yacht
      • Flood
      • Motorcycle
      • Travel
      • Pet
      • Weddings
      • Umbrella
      • All Products
    • Prepare & Prevent
      • Insurance 101
      • Home Central
      • Travelers Garage
      • Managing Through COVID-19
    • Affinity Group Discount
    • Online Service
    • Pay Your Bill
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • For Business
    • Overview
    • Products & Solutions
      • Overview
      • Boiler & Machinery
      • Commercial Auto & Trucking
      • Cyber
      • Environmental Liability
      • Excess Casualty & Umbrella
      • General Liability
      • Global Insurance
      • Inland Marine
      • Management & Professional Liability
      • Ocean Marine
      • Property
      • Business Owner's Policy
      • Surety Bonds
      • Workers Compensation
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Industries
      • Overview
      • Agribusiness
      • Architects, Engineers & Surveyors
      • Auto & Truck Dealers
      • Business & Professional Services
      • Construction
      • Education
      • Energy & Renewable
      • Equipment Dealers
      • Financial Institutions
      • Food Services
      • Health & Related Services
      • Hospitality & Recreation
      • Manufacturing
      • Marine Industries
      • Museums & Fine Art
      • Non-Profit
      • Oil & Gas
      • Public Entities
      • Real Estate
      • Retail
      • Technology
      • Transportation
      • Wholesale & Distribution
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Services
      • Overview
      • Risk Control
      • Claim
      • Premium Audit
      • Online Customer Tools
      • Risk Management Information Services
      • Travelers Client Advantage
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Small Business
      • Overview
      • Automobile Insurance
      • Business Owner's Policy
      • Data Breach
      • Employment Practices Liability
      • Professional Insurance
      • Umbrella Insurance
      • Workers Compensation Inurance
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Large Business
      • Overview
      • Casualty
      • Cyber
      • Management & Professional Liability
      • Property
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Multinational Business
    • Prepare & Prevent
      • By Topic
      • By Industry
      • Navigating Your Business Through COVID-19
        • Find an Agent
        • File a Claim
        • Pay Your Bill
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Claim Center
    • Claim Center
    • Should I File a Claim?
    • File a Claim
    • Roadside Assistance
    • Find a Service Provider
    • Check Your Claim Status
    • Manage Your Claim Experience
      • Understanding the Claim Process
      • Claim Guide Library
      • Workers Compensation Resources
    • Claim Capabilities
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Prepare & Prevent
    • For Individuals
    • Home Central
      • Buying & Selling
      • Home Maintenance
      • Home Renovation
      • Home Safety
      • Moving
      • Smart Home
    • Travelers Garage
      • Buying & Selling
      • Car Maintenance
      • Distracted Driving
      • Safe Driving
      • Teen Driving
      • Boating
    • Insurance 101
    • Weather
    • For Business
    • Industries
      • Construction
      • Manufacturing
      • Nonprofit
      • Small Business
      • Technology
    • Topics
      • Business Continuity
      • Cyber
      • Driver and Fleet Safety
      • Facilities Management
      • Internet of Things
      • Product and Services Liability
      • Supply Chain Management
      • Workplace Safety
    • Travelers Risk Index
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • About Travelers
    • Overview
      • Awards & Recognition
      • Careers
      • Community
      • Diversity & Inclusion
      • Sustainability
      • History
      • Investors
      • Media Resources
      • News
      • Travelers Championship
      • Travelers Institute
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
    • Get a Quote
    • Find an Agent
    • File a Claim
    • Pay Your Bill
Main Navigation
  • For Individuals
      • Insurance for Individuals
      • Products
        • Car
        • Home
        • Renters
        • Condo
        • Landlord
        • Boat & Yacht
        • Flood
        • Motorcycle
        • Travel
        • Pet
        • Weddings & Events
        • Umbrella
        • More
      • Prepare & Prevent
        • Insurance 101
        • Home Central
        • Travelers Garage
      • Affinity Group Discount
      • Online Service
      • Pay Your Bill
    • Get a home quote now

      It's easy to get a free quote for home insurance from Travelers in just a few minutes.

       

      Get a home quote now
  • For Business
      • Products & Solutions
        • Commercial Auto & Trucking
        • Cyber
        • General Liability
        • Management & Professional Liability
        • Property
        • Business Owner's Policy
        • Surety Bonds
        • Workers Compensation
        • More
      • Industries
        • Construction
        • Energy & Renewable
        • Financial Institutions
        • Healthcare
        • Manufacturing
        • Real Estate
        • Technology
        • Transportation
        • More
      • Prepare & Prevent
      • Services
        • Risk Control
        • Claim
        • Premium Audit
        • More
      • Pay Your Bill
      • Small Business
      • Large Business
      • Multinational Business
      • For Business Overview
    • Tips for Managing Risks Related to a Remote Workforce

      Tips for Managing Risks Related to a Remote Workforce

      With the current reality of more employees working from home through the pandemic, is your business ready for all the implications?

      Learn more
  • Claim Center
      • Claim Center
      • Should I File a Claim?
      • File a Claim
      • Roadside Assistance
      • Find a Service Provider
      • Check Your Claim Status
      • Manage Your Claim Experience
        • Understanding the Claim Process
        • Claim Guide Library
        • Workers Compensation Resources
      • Claim Capabilities
    • Send us your receipts, photos, invoices and more with just a push of a button.

      Securely share information with your Claim team.

      Send us your receipts, photos, invoices and more with just a push of a button.

      Upload a File
  • Prepare & Prevent
      • For Individuals
      • Home Central
        • Buying & Selling
        • Home Maintenance
        • Home Renovation
        • Home Safety
        • Moving
        • Smart Home
      • Travelers Garage
        • Buying & Selling
        • Car Maintenance
        • Distracted Driving
        • Safe Driving
        • Teen Driving
        • Boating
      • Insurance 101
      • Weather
      • For Business
      • Industries
        • Construction
        • Energy
        • Manufacturing
        • Nonprofit
        • Small Business
        • Technology
      • Topics
        • Business Continuity
        • Cyber
        • Driver and Fleet Safety
        • Facilities Management
        • Internet of Things
        • Product and Services Liability
        • Supply Chain Management
        • Workplace Safety
      • Travelers Risk Index
    • Managing Through COVID-19

      Managing Through COVID-19

      Resources to help you adapt to the realities of COVID-19.

      Learn more
  • Home
  • Prepare & Prevent
  • Business
  • Industries
  • Technology
  • 4 Technology Errors & Omissions Insurance Risks

4 Technology Errors & Omissions Insurance Risks

woman from tech company considering E&O risks woman from tech company considering E&O risks

Tech companies regularly have their products or services called into question. Even your best customer may file a claim against your company, alleging you are responsible for causing their lost profits or business disruption. Beyond the time involved in responding to such claims, the potential costs to defend your company and settle a claim could be ruinous to your business if you don’t have the right insurance coverage. Does your tech company have an errors and omissions (E&O) insurance policy?

Technology errors and omissions liability coverage helps cover the costs when your company is blamed for causing damages due to errors, omissions or negligent acts related to the products or services provided by your business. Claims and suits for these types of damages typically are not covered under a commercial general liability policy.

Not all errors and omissions policies offer the same protection, and it’s important to understand both the specific types of coverage offered and the unique risks facing your company. Here are four things to consider when choosing E&O coverage for tech companies.

1. Is coverage enterprise-wide? Tech companies regularly release new products and versions. That continuous innovation can be the key to your company’s success, but if customers file a lawsuit targeting a new product that was released just after you last renewed your E&O insurance coverage, it might not be covered.

Look for enterprise-wide coverage like Travelers CyberRisk Tech Errors and Omissions Liability Coverage. The broad definitions of technology products and technology services include products or services that may change mid-policy, not just products in place at the time of renewal. For tech companies that frequently release new products, this coverage could be critical.

2. Are you covered for both breach of contract and negligence? If you have an E&O policy, it might cover either breach of contract or negligence (tort) claims. A lawsuit about a specific incident could be based on both, potentially leaving your company at risk.

For example, a supplier might fail to deliver needed components on time, causing you to miss a customer’s tight deadline. Travelers CyberRisk Tech covers both breach of contract and tort claims.

3. Are there exclusions for delays? Sometimes, delays are hard to avoid. Imagine a key piece of equipment in your plant fails, and that delays part of a large shipment, which leads to a customer suing you for failing to deliver on time.

Many technology E&O forms have a delay exclusion, but Travelers CyberRisk Tech does not. This can be especially critical for companies that work on large projects or provide products within tight timeframes.

4. Is software copyright infringement covered? You could face a loss that arises out of a claim of the infringement of copyrighted software code or any other copyrighted element of any part of a software program in your technology products. For example, if you commit an error that is alleged to have resulted in the integration of copyrighted software code created by a third party into one of your products, that copyright owner could bring a claim against you. Also, one of your customers who uses that product may be sued by the software copyright owner for infringement of copyrighted software code. Your customer, in turn, might file a lawsuit against you claiming that they suffered a financial loss as a result of the lawsuit against them. If your firm has software copyright infringement exposures, you’ll want to make sure that exposure isn’t excluded in the E&O policy. It is common for insurers to exclude this exposure.

Travelers CyberRisk Tech E&O coverage is specifically designed to address the unique needs of today’s high-tech companies. It also includes worldwide coverage (except where prohibited by law or regulation); an expanded list of insureds, which includes subsidiaries you newly acquire or form; employees, including permanent and temporary workers; and independent contractors during the time they are performing duties for your business.

Contact your agent or broker to discuss the specific risks and coverage solutions recommended for your business.

Learn More About Insuring Innovation for Technology Companies

More Prepare & Prevent

tech company employees taking cyber risk measures

5 Cyber Risks for Technology Companies

Cyber risks are omnipresent for technology companies. Here are 5 risks for tech companies to consider, along with how Travelers CyberFirst insurance can help.

tech company employees meeting with remote worker

5 Keys to Choosing Global Coverage for Tech Companies

High-tech companies are operating in a global business environment, which can mean unprecedented opportunities as well as new and evolving risks.

person from tech company considering workers compensation insurance

5 Tips for Choosing Workers Compensation Insurance for Tech Companies

Does your tech company have workers comp coverage designed for the unique needs of tech companies? It can be a competitive advantage. Learn how.

Top Stories
manufacturer using technology to identify risks

How High-Tech Manufacturers Can Prepare for Global Risks

Learn how high-tech manufacturers can help mitigate their exposure from international operations by understanding five key classes of global risk.

  • Read more

Related Content

  • Defending Your Supply Chain from Counterfeit Electronic Parts
  • How to Help Protect Your Intellectual Property
  • 5 Shadow IT Practices that Put Technology Companies at Risk

Find an Agent

Need an Agent?

Get the personal service and attention that an agent provides.

Find a local agent in your area:


Related Products & Services

Technology Industry Insurance

For more than 30 years, Travelers has been insuring the telecommunications, information technology, medical technology and electronics manufacturing industries.


CyberFirst® for Technology Companies

Broad cyber liability and expense reimbursement coverage designed to meet the complex needs of technology companies.


View More Business Insurance Options


See All Technology Content


Travelers logo

Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
© 2023 The Travelers Indemnity Company. All rights reserved.

  • Travelers on Facebook
  • Travelers on YouTube
  • Travelers on Twitter
  • Travelers on LinkedIn
  • Travelers on Instagram

Products & Services

  • For Individuals
  • For Businesses
  • Claim Services
  • Prepare & Prevent

Our Company

  • About Travelers
  • Careers
  • Investors
  • Sustainability
  • Travelers Institute

Connect

  • Customer Support
  • MyTravelers®
  • For Agents
  • Find an Agent

Legal & Compliance

  • Terms of Service
  • Privacy & Security
  • Cookie Settings
  • Accessibility
  • Producer Compensation Disclosure