Insurance for IT and Technology Companies
When your code, network or advice fails, your client loses money, and that is a different claim from a slip in your office. We help you compare IT and tech coverage for the work you hand over, the data you touch and the contracts you sign.
Tech businesses we work with
Technology insurance covers a wide range of firms, and the right package depends on what you actually deliver. We work with:
- managed service providers and IT support companies that run clients’ networks, help desks and backups;
- software developers and SaaS companies that sell code or a subscription product;
- web designers, developers and digital agencies that build and host sites;
- IT consultants and project managers who plan migrations and rollouts;
- low-voltage, cabling and hardware installers who work inside client buildings.
Tell us which of these describes most of your revenue. A firm that writes software and also installs equipment on site carries both kinds of risk, and the application has to show both.
Tech E&O comes first
The claim most tech firms worry about is a client saying your work cost them money. A migration takes the client’s store offline for a weekend, an update corrupts their records, or a project misses the launch date it was built for. General liability is written for bodily injury and property damage, so it leaves most of these claims alone.
Technology errors and omissions insurance is built for them. IRMI describes tech E&O as covering losses from technology services, technology products, media content and network security breaches. Many forms also carry extortion, crisis management and business interruption coverage. Read our professional liability page for how a claims-made E&O policy handles the date the work was done and the date the claim arrives.
Cyber for your systems and your clients’ data
A tech firm holds two kinds of cyber exposure. One is your own: ransomware on your laptops, a hijacked email account, or a payment sent to a fraudster. The other is the access you hold to clients’ systems. A managed service provider with administrator rights across dozens of client networks is exactly the kind of account attackers look for, and underwriters ask detailed questions about it.
Expect questions about multi-factor authentication on remote access tools, how privileged accounts are controlled, how backups are kept apart from production, and how quickly you patch. California’s breach rules also apply when client data leaks: the Attorney General’s office notes that a business notifying more than 500 California residents of a single breach must submit a sample of the notice to its office. Our cyber insurance page and cyber readiness checklist go deeper.
What client contracts ask for
Master service agreements and statements of work usually carry an insurance section. Typical requests are tech E&O and cyber at a stated limit per claim, general liability with the client added as an additional insured, workers’ compensation, and sometimes a waiver of subrogation. Larger clients often send a vendor questionnaire with the contract and ask for a certificate before the first invoice is paid.
Read the limitation of liability clause alongside the insurance clause. A contract that caps your liability at the fees paid limits what a client can recover, while a contract with no cap leaves you exposed to the client’s full loss. Send us the draft before you sign, and see insurance requirements in client contracts for how each request maps to a policy.
Work on client sites and on the road
Firms that install cabling, servers, access points or cameras spend their days in other people’s buildings. A ladder that cracks a lobby floor or a drill bit through a water line is a general liability claim, and the client’s building manager will ask for proof of it before work starts.
Laptops, test gear and spare hardware that ride in a car between jobs are covered by tools and equipment insurance, which follows property away from your office. Technicians who drive their own cars to client sites raise hired and non-owned auto, and company vans belong on commercial auto.
Employees, contractors and California rules
California requires workers’ compensation as soon as you have an employee, including a single part-time help desk technician. Many tech firms also lean on freelance developers and designers. California’s ABC test decides whether those people are contractors or employees, and the answer changes both your workers’ comp payroll and who your E&O policy treats as working for you. Our guide to employees vs. independent contractors in California walks through the test.
Subcontracted work is still your work in the client’s eyes. Ask subcontractors for their own E&O and cyber certificates, and check whether your policy covers work you hand to them.
What to have ready for a quote
A tech application moves faster when you have these at hand:
- annual revenue split by service, such as managed services, development, hosting or installation;
- the industries your clients are in, especially healthcare, finance and government;
- the largest contract value and a sample master service agreement;
- your security controls: multi-factor authentication, endpoint protection, backup testing and patching;
- any past claims, demand letters or client disputes;
- headcount, payroll and how much work goes to subcontractors.
With that list, we can compare tech E&O and cyber options side by side and match the limits your contracts require. Contact us to start.
A few useful answers
Common questions
Does general liability cover a client's lost revenue from an IT mistake?
Usually not. General liability is written for bodily injury and property damage. A client’s financial loss from your services, software or advice is what tech E&O is built for.
Do I need cyber insurance if my clients have their own?
Your clients’ cyber policies protect them, not you. If an attack spreads through your remote access tools or your client data leaks from your systems, the claim comes to you, and their insurer may pursue you to recover what it paid.
Is tech E&O the same as professional liability?
Tech E&O is professional liability written for technology work. It adds coverage that a general professional policy may not carry, such as technology products, media content and network security breaches.
How much E&O and cyber should a managed service provider carry?
Start with the limits your largest contracts require, then weigh how many client networks you can reach from one set of credentials. MSPs with broad administrator access often carry higher cyber limits than their contracts alone would suggest.