Tech E&O vs. Regular E&O Insurance: What’s the Difference and Which Do You Need?

Tech E&O vs. Regular E&O Insurance: What’s the Difference and Which Do You Need?

If you’re in the technology industry or provide any kind of professional services, understanding the differences between Technology Errors and Omissions (Tech E&O) insurance and regular E&O insurance (Professional Liability) is crucial.

Although both cover claims of professional negligence, they protect against different types of risk depending on the nature of your work.

What Is Tech E&O Insurance?

Technology E&O Insurance is specifically designed for businesses that develop, sell, or consult on technology products and services—such as:

• Software developers
• IT consultants
• Managed service providers
• Tech startups
• SaaS companies

Tech E&O protects your business if your product or service fails to perform as promised and causes your client a financial loss.

Example:
If your software update accidentally crashes a client’s system and results in days of lost revenue, Tech E&O can help cover the legal costs, settlements, and even the technical fixes.

In many cases, Tech E&O includes cyber liability features, helping to cover data breaches, security failures, or unauthorized access to client data—exposures common in tech-heavy industries.

What Is Regular E&O (Professional Liability) Insurance?

Traditional E&O Insurance, also known as Professional Liability Insurance, is broader and applies to non-tech professionals who provide advice, designs, or services. This includes:

• Accountants
• Lawyers
• Engineers
• Consultants
• Real estate professionals
• Architects

This coverage protects against claims of negligence, mistakes, or incomplete work that result in a client’s financial loss.

Example:
If an architect’s flawed blueprint leads to costly construction delays, or if a consultant gives incorrect advice that causes a client to lose money, regular E&O insurance helps cover the damages.

Note: Traditional E&O does not usually cover cyber-related losses unless you specifically add cyber liability endorsements to the policy.

Why the Distinction Matters

Choosing the wrong policy can leave major gaps in your coverage. If you're in tech and you only carry a standard E&O policy, you may not be covered for issues like:

• Software errors
• System failures
• Breach of data
• Cyber extortion or hacking-related claims

Likewise, if you're a non-tech professional, you may not need the more specialized features (and cost) that come with Tech E&O.

Final Thoughts: Which One Do You Need?

If your business directly handles technology products, systems, software, or data, Tech E&O is likely the better fit.

If you provide professional services unrelated to tech, such as legal, accounting, or business consulting, traditional E&O insurance will likely cover your needs—provided your policy limits and exclusions are clearly defined.

No matter your industry, working with an experienced insurance professional can help you assess your risk profile and ensure you're getting the right protection.

Need help finding the right E&O insurance for your business?

📞 Contact us today—we’ll help you make sure your coverage matches your exposure.