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💻 '''Technology errors and omissions (Tech E&O)''' is a form of [[Definition:Professional liability insurance | professional liability insurance]] designed to protect technology companies and service providers against [[Definition:Insurance claim | claims]] arising from failures, defects, or negligent acts in the technology products or services they deliver. Within the insurance industry, Tech E&O has become a critical coverage line as insurers, [[Definition:Managing general agent (MGA) | MGAs]], and [[Definition:Insurtech | insurtechs]] increasingly depend on third-party technology vendors for core functions such as [[Definition:Policy administration system | policy administration]], [[Definition:Claims management | claims processing]], [[Definition:Underwriting system | underwriting platforms]], and data analytics. The coverage responds to allegations that a technology product failed to perform as intended, that a software defect caused financial harm to a client, or that professional services such as systems integration or IT consulting fell below the expected standard of care.

🔧 Tech E&O policies typically cover defense costs, settlements, and judgments arising from third-party claims of negligent acts, errors, or omissions in the delivery of technology services or the performance of technology products. Coverage often extends to scenarios such as system outages that disrupt a client's operations, software bugs that corrupt or lose data, and failures to meet contractual specifications or service-level agreements. Many policies blend Tech E&O with [[Definition:Cyber insurance | cyber liability]] coverage into a combined form, recognizing the overlap between professional service failures and [[Definition:Data breach | data breach]] or [[Definition:Network security | network security]] incidents. Underwriting this class requires evaluating factors such as the insured's client concentration, contract terms, quality assurance practices, revenue size, and the nature of the technology — with [[Definition:Cloud computing | cloud-based]] and [[Definition:Software as a service (SaaS) | SaaS]] providers presenting different risk profiles than bespoke systems integrators.

📈 The significance of Tech E&O within the broader insurance ecosystem has grown in parallel with the digital transformation of the industry itself. When an [[Definition:Insurance carrier | insurer]] contracts with a technology vendor to run its [[Definition:Underwriting system | underwriting engine]] or [[Definition:Claims management system | claims platform]], the vendor's Tech E&O policy becomes a critical backstop — protecting against downstream losses that could ripple through the insurer's book of business. Regulatory scrutiny of [[Definition:Outsourcing | outsourcing]] and third-party risk management, evident in frameworks like the European Union's Digital Operational Resilience Act (DORA) and guidance from bodies such as the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]], has heightened expectations that technology providers carry adequate E&O coverage. For specialty [[Definition:Underwriter | underwriters]], Tech E&O represents a dynamic and technically demanding class where deep understanding of both technology risk and contractual liability is essential to profitable portfolio management.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Professional liability insurance]]
* [[Definition:Cyber insurance]]
* [[Definition:Errors and omissions insurance (E&O)]]
* [[Definition:Software as a service (SaaS)]]
* [[Definition:Third-party risk management]]
* [[Definition:Outsourcing]]
{{Div col end}}

Definition:Technology errors and omissions (Tech E&O) - Revision history

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