Tech E&O insurance
Professional indemnity insurance for software companies
Optimal protection for software companies
The digital world is developing rapidly and software companies are increasingly faced with complex liability risks. A small error in the code, a delayed software launch or a data protection breach can have significant financial and legal consequences. Technology Errors & Omissions (Tech E&O) insurance, or IT liability, protects your company from these risks and gives you the security to concentrate fully on your gamechanging business.
What is Tech E&O insurance?
What does Tech E&O insurance protect against?
Tech E&O insurance is specially tailored to the needs of software companies and IT service providers.
It protects against third-party claims arising from:
Errors
in software, codes or IT services.
Breaches of contract
such as failure to meet delivery deadlines or inadequate performance.
Violations of data protection regulations
for example GDPR or CCPA
Cyber security breaches
that lead to data leaks or system failures
Reputational damage
due to faulty software or security vulnerabilities
... arise.
Why is Tech E&O insurance essential for software companies?
The risks in the tech industry are unique and complex. Many companies don't realize that traditional business liability insurance is not enough to cover industry-specific risks. Tech E&O insurance protects your company against:
- Costly legal disputes when customers demand compensation,
- Financial losses due to project delays or software errors,
- Liability claims due to cybersecurity incidents,
- Unforeseeable risks that could impair business operations.
Who needs tech E&O insurance?
Tech E&O insurance is essential for companies that:
- Develop software solutions or apps,
- IT consulting or managed services,
- operate cloud or SaaS platforms,
- provide data processing or hosting services,
- Develop AI-supported technologies or algorithms.
What do you need to look out for when choosing a Tech E&O?
A good Tech E&O should be designed as open financial loss cover and should generally be taken out together with public liability insurance . Traditional public liability insurance covers personal injury and property damage, while tech E&O only covers pure financial losses. Current case law considers violations of personal rights to be personal injury and not financial loss. By taking out both types of cover with one insurer, you ensure that you will not be refused cover due to an uninsured type of loss and have to fight for it or be refused cover altogether. The open cover ensures that new risks that arise during the year or changed business activities, for example if you acquire customers in a new sector, are also covered by the insurance and you do not have to clearly define what your activity looks like. This enables far-reaching insurance cover.
Other important details are the co-insurance of cyber third-party losses, which are included in a good tech E&O policy. However, if these are included, they can be excluded from your cyber insurance to avoid double insurance. In addition to these points, the scope of the insurance cover, appropriate sums insured, worldwide cover and many other points are also important.
Please feel free to contact us. Our team of experts will advise you on the right insurance cover!
Our customized solutions for your company
We offer individual insurance solutions that are specifically tailored to the requirements of software companies. Our Tech E&O insurance includes:
➜ Flexible coverage amounts, customized to your company size and project risks:
➜ Protection against industry-specific risks, including data breaches and cyber attacks,
➜ Fast settlement in the event of a claim so that your business operations are not impaired.
CONCLUSION
Maximum security for
your company!
Tech E&O insurance protects software companies against the growing risks in the digital world. With our individual advice and tailor-made solutions, we ensure that you are optimally protected and can concentrate on what really matters: Innovation and growth.