What Does Software Company E&O Insurance Cover?
It may cover eligible third-party claims alleging that covered software services or products caused loss; scheduled work and exclusions decide the result.
A software company may develop custom applications, sell packaged products, license code, host a platform, or maintain customer systems. Describe each activity to the insurer rather than relying on an industry label. The Insurance Information Institute lists software developers among businesses that should consider professional liability, and technology insurers market specialized E&O for products and services. Check that the quote identifies development, licensing, updates, implementation, hosting, and support as applicable. Compare coverage for customer financial loss with exclusions for warranties, intellectual property, privacy, data restoration, and bodily injury or property damage. Ask how subcontractor work, open-source dependencies, claims-made dates, and defense costs are handled. The policy schedule should match the work described in customer contracts.
Ask whether work delivered by acquired teams or outside developers is included, and whether those operations appear in the application.
Related Coverage
Sources
- Professional liability insurance. Insurance Information Institute; Opening paragraphs (professional services/advice and E&O name); Claims not covered by general liability; What types of businesses need professional liability insurance?; What’s covered… and what’s not (claims-made versus occurrence, defense and judgments, non-financial/intentional limits, BOP/in-home exclusion). Accessed 2026-09-25.
- 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.
