Does Tech E&O Cover Software Bugs?

The Hartford describes software glitches, product failures, and data-service failures as examples of claims its Tech E&O product may help address. Coalition also lists software errors and bugs that disrupt or delay operations as possible claim scenarios and cautions that facts and issued wording control. These examples do not promise coverage for every defective release. Check whether your policy schedules development, licensing, SaaS, maintenance, and updates; whether the client claim alleges covered negligence or another covered act; and whether warranties, contractual penalties, known defects, or failure-to-perform exclusions apply. Confirm the retroactive date, reporting deadline, deductible, and whether fixing or replacing your own software is excluded as a first-party cost.

A bug fix differs from damages a client seeks after relying on software. Ask whether remediation, replacement, customer service credits, and consequential losses are treated separately.