Does Tech E&O Cover Downtime?
It may cover a client’s claim alleging your technology service caused covered loss during downtime, but your own outage losses are a separate question.
Tech E&O is generally aimed at third-party claims over technology services or products. The Hartford describes customer losses from software or cloud-service failures, and Coalition lists software errors that delay operations among possible Tech E&O claim types. That differs from your own lost revenue while a platform is unavailable, which may require first-party business-interruption coverage and a qualifying trigger. Check whose downtime is insured, the covered-error and damages language, service-level or uptime commitments, waiting period, exclusions for infrastructure providers, and any interruption extension. Confirm whether defense expenses reduce limits and whether system restoration is covered under cyber or property coverage.
Contractual uptime credits may differ from damages awarded in a lawsuit. Review exclusions for liquidated damages, guarantees, and outages caused by an outside cloud or network provider.
Ask whether the trigger requires a covered technology error and whether the policy measures interruption from the client’s or your own perspective.
Related Coverage
Sources
- Technology Errors and Omissions Insurance. The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.
- How to add Tech E&O coverage to a Coalition quote. Coalition North American Servicing; Opening paragraph; Steps 1–2 (Tech E&O offered as optional endorsement to Coalition cyber coverage). Accessed 2026-09-25.
- Cyber Insurance: Cybersecurity for Small Business. National Association of Insurance Commissioners; What Should Your Cyber Insurance Policy Cover?; first-party coverage; third-party coverage, pp. 1–2. Accessed 2026-09-25.
