Technology Errors & Omissions insurance is the operational policy for companies shipping software — defending you when a customer alleges your product caused them financial harm, whether through a bug, a service outage, an AI hallucination, or a missed SLA.
Last reviewed April 24, 2026 · Reviewed by the Corgi Insurance team
Tech E&O is the policy enterprise customers ask about first. It defends your company when the software doesn't do what the SOW promised — and with affirmative AI coverage, it doesn't go silent the moment your model speaks.
Pulled from the actual form
Technology E&O
What this policy pays for.
A bug in your API drops transactions for 4 hours during your customer's biggest sales day.1
Defense costs and damages when a customer alleges your technology product or professional services failed to perform as promised, missed an SLA, or caused a financial loss.
Your LLM hallucinates a citation in a customer's legal filing and they're sanctioned.2
Affirmative coverage for claims arising from AI-generated outputs, including hallucinations, biased decisions, defective recommendations, and downstream losses caused by your model.
A competitor sues alleging your training data infringed their copyrighted content.
Defense costs for third-party copyright, trademark, trade-secret, and patent-infringement claims tied to your product, code, or content. Patent infringement is sublimited.
A misrouted webhook causes a $250k double-charge for one of your enterprise customers.
First-party financial harm to a customer caused by an error or omission in your product, including incorrect calculations, mishandled transactions, and integration failures.
A delivery robot you sold injures a warehouse worker — the customer alleges product malfunction.3
Coverage for bodily injury or property damage caused by a failure of your technology product or service. Bridges the gap left by standard CGL exclusions for software.
You sell the company and the buyer wants tail coverage for any post-close E&O claims.
Optional Extended Reporting Period for claims arising from work performed prior to policy expiration, M&A, or change of control. Standard terms range from 1 to 6 years.
Service-level agreement breaches are covered when your customer alleges quantifiable financial loss. Pure liquidated-damages SLA credits are typically excluded.
AI-output coverage is provided on an affirmative basis — Corgi explicitly does not exclude AI claims, in contrast to many legacy carriers that quietly add AI exclusions.
Contingent bodily injury and property damage attaches only when caused by a failure of the insured technology, and is sublimited below the main E&O limit.
Tech E&O, Cyber, and CGL each handle a different category of liability. Most software companies need all three.
Defends the company when its software or service causes a customer financial harm — bugs, outages, missed SLAs, AI errors, and integration failures. Required by enterprise customers in MSAs and procurement reviews. Stacks alongside CGL (which covers physical/tangible harm) for complete startup coverage.
Defends the company against data breaches, ransomware, and privacy violations. Where Tech E&O covers software performance failures, Cyber covers security incidents and data exposure. Most enterprise contracts require both — bundled together they cover both software bugs and breach response.
Covers physical and tangible third-party harm — bodily injury, property damage, advertising injury — but explicitly excludes financial-only losses from software. Tech E&O is the financial-loss counterpart that fills this gap, and most enterprise vendor contracts require both.
Tech E&O is mandated by virtually every enterprise Master Services Agreement (MSA), with limits typically scaling from $1M for early customers up to $5M–$10M for Fortune 500 contracts. The policy structure (claims-made E&O with affirmative AI and contingent BI/PD) supports the indemnity, hold-harmless, and additional-insured language standard in tech procurement.
Procurement teams and security auditors expect proof of E&O coverage during vendor onboarding. The policy supports COIs naming the customer, additional-insured endorsements, and waiver-of-subrogation language that align with SOC 2 vendor-management controls and standard enterprise risk transfer requirements.
Tech E&O is designed to respond to claims arising from software bugs, service outages, AI hallucinations, integration failures, missed SLAs, IP infringement, and consulting errors — making it the operational policy for any company shipping technology, regardless of stage or vertical.
Customer financial loss tied to downtime, dropped transactions, or SLA misses. Defense and indemnity within the per-claim limit.
Affirmative coverage for hallucinations, biased decisions, and downstream losses caused by your model — without the silent AI exclusions legacy carriers add.
Errors in code that cause a customer financial harm — incorrect calculations, mishandled state, broken integrations, missed webhooks.
Failures in professional services tied to the technology — implementation errors, integration mistakes, consulting advice that turns out to be wrong.
Third-party copyright, trademark, and trade-secret claims tied to your code, content, or training data. Patent claims sublimited within the aggregate.
Bridges the CGL exclusion for software — covers bodily injury or property damage caused by a failure of your technology product.
Tech E&O is the operational policy for software companies. Layer in CGL, Cyber, D&O, and more — modular coverage that grows with you.
Protects your business against third-party claims for bodily injury, property damage, and personal or advertising injury arising from your operations.
Protects against losses and claims resulting from data breaches, cyberattacks, and network security failures.
Covers claims alleging your technology products or services failed to perform as intended, causing financial harm to a client.
Covers claims made against company leaders for alleged wrongful acts in managing the business.
Protects against claims alleging wrongful termination, discrimination, harassment, or other employment-related issues.
Protects your company and plan fiduciaries against claims alleging mismanagement of employee benefit plans, including retirement and health plans.
Protects against claims arising from your published or distributed content, including allegations of defamation, copyright infringement, or invasion of privacy.
Provides liability coverage when employees use rented or personal vehicles for company business.
Go deeper on Tech E&O and the rest of the startup insurance stack.
Key terms that appear in policy language, MSAs, and procurement reviews.
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