E&O vs Cyber Insurance: What’s the Difference?

A failed service and a security incident can overlap, but they are not the same coverage trigger. Professional E&O asks whether covered professional services caused a third party’s loss. The NAIC guide describes first-party cyber coverage for expenses such as restoring data, notifying customers, and lost income, plus third-party coverage for claims and litigation. Some technology E&O products add security or privacy liability, while other forms exclude these risks. Review each policy’s definition of a claim, professional services, security failure, privacy event, and covered loss. Check whether cyber includes first-party, third-party, or both; vendor coverage; which policy responds first; and whether sublimits or waiting periods leave a gap.

For a package quote, request separate limits and retentions for E&O and cyber. Bundling can simplify placement, but it does not mean every event activates every coverage part.