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Insurance Buying Guide for Insurtech Businesses
Insurance technology companies can have very different roles: software provider, agency, administrator, or business exercising authority for a carrier. Before comparing quotes, list the services, entities, data, funds, and contracts involved. A California producer-license lookup can verify a listed licensee’s status and discipline history, but it does not show whether a policy fits your operations.[1][2]
Which Insurance Should You Consider?
Consider professional errors and omissions (E&O), technology errors and omissions (E&O), cyber liability, crime, directors and officers, and employment practices liability. Start with the coverages tied to your day-to-day operations, then use the situations and buying questions below to compare your options.
Professional errors and omissions (E&O)
You sell, advise on, place, administer, or adjust insurance products for customers or a carrier.
Ask which professional acts, entities, and customer-facing services the actual form covers and what financial-services, contract, and regulatory exclusions apply. Ask the insurer to explain the response under the actual form.[2]
Ask Before Buying
Which named professional services, entities, alleged errors, financial-services exclusions, and defense-cost terms appear in the actual wording?
Technology errors and omissions (E&O)
An insurer, agency, or customer relies on your quoting, rating, policy-administration, claims, or data software.
Describe the software service and a concrete failure scenario. Ask how the specific technology E&O wording addresses the service, financial loss, subcontractors, and contractual duties; do not infer an answer from the line name.[3]
Ask Before Buying
Which named services, entities, alleged financial injury, financial-services exclusions, and defense-cost terms appear in the actual wording?
Cyber liability
You handle policyholder financial or health information or depend on claims, policy, or cloud systems.
NAIC describes cyber policies as highly customized and says most commercial property and general-liability policies do not cover cyber risks. Compare the actual data, vendor, response, and interruption terms.[5]
Ask Before Buying
Does the quote address policyholder and customer data, underwriting and claims systems, carrier or program vendors, response costs, and interruption? Which sublimits, waiting periods, and exclusions apply?
Crime
You handle premium, commission, claim, settlement, or customer funds, or staff can change payment instructions.
Crime forms vary by purchased causes and insured property. Ask whose money, what persons and instructions, and which transfer routes are described; do not assume customer funds or a digital transfer is included.[6]
Ask Before Buying
Whose property is insured, and which people, instructions, transfer methods, discovery terms, direct-loss conditions, and exclusions apply?
Directors and officers
A carrier partnership, board, investor, or acquisition changes governance and management responsibilities.
A board, investor, or contract request is a prompt to compare the entities, people, claim definitions, and insurance-activity exclusions in the proposed wording.[3]
Ask Before Buying
Which entities and people are insured, what claims and defense costs are addressed, and which financial-services or regulatory exclusions apply?
Employment practices liability
You hire producers, claims staff, engineers, or support teams, or add another employing entity.
Employment-related claims are distinct from standard CGL categories. Ask which employing entities and worker groups are insured and what allegations and defense terms the actual form lists.[4]
Ask Before Buying
Which employing entities, worker groups, allegations, defense-cost terms, and exclusions appear in the proposed form?
Separate Software from Insurance Functions
For each entity, identify whether it only supplies software or also markets, solicits, places, binds, services, or adjusts coverage, or performs work under delegated authority. Ask the broker to put each service and capacity into the application and name the correct insured entities. A software description alone may omit work the contract assigns.[2][3]
In California, use CDI’s inquiry to check the intermediary’s status and discipline history, then confirm its listed license class. The lookup does not establish expertise or whether a policy fits your business.[1][2]
Map Data, Funds, and Claims Separately
List policyholder data, premium and settlement funds, claim decisions, insurer systems, and third-party vendors separately. For each, ask what the quote says about your own property, customer property, fraudulent instructions, data incidents, and interruption. A general crime or cyber category does not settle these questions.[6][5]
For any carrier or bank contract, compare the required notice, service, continuity, indemnity, and evidence terms with the actual application and policy documents. Ask the insurer whether the wording addresses the obligation you accepted; do not treat a partner checklist as proof of coverage.[3]
Providers to Compare by Coverage
Professional errors and omissions (E&O)
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10
Technology errors and omissions (E&O)
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Cyber liability
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Crime
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10
Directors and officers
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Employment practices liability
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Common Questions
Does a California producer license class show that a policy fits an insurtech?
No. CDI’s lookup can verify a listed licensee’s status and discipline history, and its page lists license classes. Neither establishes the quality of advice or the fit of an insurance form.[1][2]
Read the Full AnswerCan a software vendor assume its technology policy also addresses agency or program work?
Do not assume that. Software, producer services, and delegated work are different operations to describe in the submission; ask the insurer which are listed and how the form treats each.[2]
Read the Full AnswerSources and Further Reading
- Agents & Brokers Overview — California Department of Insurance. Producer License Status Inquiry; California only; accessed 2026-09-28.
California-only tool to check listed intermediary license status and discipline history.
- Producer Types and Requirements — California Department of Insurance. License Classes Listed in Alphabetical Order; California license classes only; accessed 2026-09-28.
California producer class list; it does not determine which class a business activity requires or whether a policy fits.
- Agencies Issue Final Guidance on Third-Party Risk Management — Office of the Comptroller of the Currency, Federal Reserve Board, and Federal Deposit Insurance Corporation. Joint release, bank third-party relationship lifecycle and fintech examples; accessed 2026-09-28.
Bank-side guidance for service-provider diligence and contracts, not an insurance mandate.
- Small Business Insurance — National Association of Insurance Commissioners. General liability, what it does not cover, and other business insurance types; accessed 2026-09-28.
Generic line explanations and distinctions; not insurance or insurtech-specific response evidence.
- Insurance Topics | Cybersecurity — National Association of Insurance Commissioners. Cyber risks and cyber insurance; page background last updated May 9, 2024; accessed 2026-09-28.
General cyber customization context; not a policy form.
- Commercial Insurance Guide — California Department of Insurance. Form 700, revised June 14, 2024; commercial property and covered causes, crime, commercial general liability, time element, workers compensation, and rating sections; accessed 2026-09-28.
Commercial line definitions and quote review from California’s regulator; keep legal examples California-specific.
This guide is general insurance buying education, not a producer-licensing determination or coverage opinion. Confirm licensing and regulatory questions for each jurisdiction and review policy wording with the broker and insurer.
Updated 2026-09-28. Editorial Policy
Get Help With Insurance Buying and Renewals.
Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.