Does Tech E&O Cover Software Failure?

Software failure can result from a design defect, integration issue, failed update, interruption at a vendor, or a cause outside the insured’s control. Policies may treat these causes differently. The Hartford describes technology E&O examples involving software or cloud data services that fail, while Coalition lists technology product or service errors as possible claim scenarios; both explain that issued terms govern. Review the definition of technology products and services, covered wrongful acts, vendor exclusions, warranties, and limits for delay or loss of use. Ask whether the customer’s financial claim is covered separately from the cost to repair, replace, or restore the software. Confirm reporting dates and defense-cost treatment, and compare those terms with customer agreements that allocate responsibility for hosting or integrations.

Clarify whether recurring outages from one underlying defect count as one related claim or multiple claims under the limits.