Insurance for technology companies, built for enterprise contracts
Tech E&O, cyber, D&O and EPLI built around how software, AI, hardware and IT services companies actually get sued. Aiden pairs an AI risk engine with licensed brokers to place it across 100+ carriers.
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Quick answer: Most technology companies need four core lines: technology E&O, cyber, D&O and EPLI, plus general liability and property for offices and equipment. The biggest exposure is usually not a slip and fall but a customer who says your product failed, went down or leaked their data, and in the US the average data breach now costs $10.22 million (opens in a new tab) according to IBM's 2025 report. Premium is driven by revenue, the kind of data you touch, your security controls, your contract terms and your funding stage. Where it goes wrong: E&O and cyber bought as separate policies that leave a gap between them, a contract that promises more than the policy covers, and a retroactive date that resets when you switch carriers.
Technology businesses we insure
Aiden works with technology companies from seed-stage startups to mid-market software and services firms in its 16 licensed states.
SaaS and software
Uptime, data and service-level promises in customer contracts make tech E&O and cyber the anchor policies, usually written together on one form.
AI companies
Model errors, training data and AI marketing claims raise E&O, IP and regulatory questions that older policy wording was not written for.
Hardware and IoT
A physical product adds products liability, recall and property exposure on top of the software and data risks of connected devices.
IT services and MSPs
Privileged access to many client networks means one compromise can become many claims, so underwriters look hard at remote access tools and MFA.
Venture-funded startups
Investors usually require D&O after a priced round, and the board composition and cap table shape how that policy is written.
Why technology is hard to insure
Technology companies are sued for financial loss, not bodily injury, which is why the general liability policy most small businesses rely on does little here. Third parties were involved in 30% of breaches (opens in a new tab) in Verizon's 2025 DBIR, double the year before, and your customers know it. That is why their contracts push the risk back onto you.
A customer blames your product for its losses
A failed release, a bad integration or an outage stops a customer's operations and they claim lost revenue. After the July 2024 CrowdStrike outage, Delta's CEO put the airline's cost at $500 million (opens in a new tab), while CrowdStrike said its liability was contractually capped in the single-digit millions, which shows how much the contract matters.
A breach that starts in your platform or your vendor's
Ransomware was present in 44% of breaches (opens in a new tab) Verizon analyzed in its 2025 report. When customer data sits in your product, you face your own response costs and your customers' claims at the same time.
An MSP compromise that spreads to every client
In July 2021 attackers exploited a flaw in remote monitoring software to hit multiple managed service providers and their customers (opens in a new tab) in a single supply chain attack. For an IT services firm, one incident can produce a claim from every client it touched.
A payment diverted by a fake email
Business email compromise drew $3.05 billion in reported losses (opens in a new tab) to the FBI in 2025. Finance teams at fast-growing companies that pay vendors and contractors by wire are frequent targets, and many cyber policies limit or exclude this loss unless social engineering coverage is added.
AI claims that outrun the product
The FTC has said there is no AI exemption (opens in a new tab) from existing consumer protection law and brought five actions over deceptive AI claims in one 2024 sweep. Overstated AI capabilities can draw regulators, customers and investors at once.
Investor and employee suits as you grow
Securities class action filings rose to 121 in the first half of 2026 (opens in a new tab), coinciding with a surge in suits involving AI and technology companies, according to Cornerstone Research. Private companies see the same pattern earlier: claims from investors after a down round or failed sale, and from employees after layoffs.
The coverage technology companies actually need
Technology E&O
Covers claims that your software, platform or service failed to perform, caused a customer financial loss or breached a service commitment. It is the policy enterprise customers check first.
Watch for: Contractual liability exclusions that drop coverage for promises you made in an MSA, and exclusions for patent infringement or trade secret claims. Check that the E&O and cyber insuring agreements meet without a gap.
Cyber liability
Pays breach response, forensics, notification, ransomware, business interruption and third-party privacy claims. For a SaaS company it should cover data you hold for customers, not just your own.
Watch for: Social engineering and funds transfer fraud sublimits, dependent business interruption for your cloud providers, and warranties on MFA or backups that can void coverage if your answers on the application were wrong.
Directors and officers (D&O)
Protects founders, directors and the company against claims from investors, acquirers, regulators and competitors. Investors commonly make it a condition of their investment.
Watch for: The insured versus insured exclusion and how it treats investor-appointed directors, plus whether Side A limits are enough to protect individuals if the company cannot indemnify them.
Employment practices liability (EPLI)
Covers discrimination, harassment, retaliation and wrongful termination claims, which climb with headcount, layoffs and remote hiring across states. The EEOC processed 88,201 new charges (opens in a new tab) in fiscal 2025.
Watch for: Wage and hour exclusions, coverage for employees working in states outside your headquarters, and whether third-party claims from customers are included.
General liability and property
Leases and many customer contracts still require general liability, and offices, labs, servers and hardware inventory need property cover. Hardware companies need products liability on top.
Watch for: GL does not cover a software failure or data breach. Hardware and IoT companies should check product recall, foreign manufacturing and the definition of your product.
Intellectual property and media liability
Copyright, trademark and content claims come with shipping code, training models and marketing. Some tech E&O forms include media liability, and some do not.
Watch for: Patent infringement is commonly excluded from tech E&O and usually needs separate, specialized cover. Check how training data and open source license disputes are treated.
Crime and social engineering
Covers employee theft and, with the right endorsement, payments sent to a fraudster who impersonated a vendor or executive.
Watch for: Whether social engineering sits on the crime or the cyber policy, the sublimit, and any requirement to verify payment changes by phone before the loss is covered.
What technology insurance costs
There is no single price for technology companies. These are the factors carriers weigh most when they quote one.
Revenue and contract size
Tech E&O and cyber are usually rated on revenue. Larger enterprise contracts also mean larger potential claims and higher limits required by the customer.
What data you touch
Health, payment, biometric and children's data cost more to insure than business contact data. Underwriters ask how many records you hold and whether you store them or only process them.
Security controls
MFA, endpoint detection, offline backups, patching cadence and remote access controls are asked about on every cyber application. Weak answers raise premium or lead to exclusions.
What your product does
Software that runs payments, healthcare, infrastructure or security decisions carries more E&O exposure than a marketing tool. AI that makes decisions for customers draws extra questions.
Funding stage and board
D&O pricing moves with capital raised, investor mix, burn rate and plans for a sale or IPO. A public offering changes the D&O market you buy in entirely.
Headcount and where people work
EPLI is priced on employee count, turnover and the states you employ in. California and New York employees usually cost more to cover.
Claims history
Prior E&O claims, breaches and employment charges follow you. Five years of loss runs are standard in a submission.
Published cost benchmarks
Figures published by the sources shown, for context. They are not quotes: your premium depends on the factors above.
- $146 a monthTech E&O, average minimum monthly premium (small business customers)Source: The Hartford (opens in a new tab)
- About $320 a yearData breach coverage, small business customersSource: The Hartford (opens in a new tab)
- About $810 a yearGeneral liability, small business customers (all industries)Source: The Hartford (opens in a new tab)
- $10.22 millionAverage cost of a data breach in the US (2025)Source: IBM Cost of a Data Breach Report 2025, via Baker Donelson (opens in a new tab)
What clients, contracts and regulators will ask for
For technology companies, insurance requirements mostly arrive in someone else's paperwork: an enterprise MSA, a security questionnaire, a term sheet or a lease.
- Enterprise customer MSAs usually require tech E&O and cyber, often combined, plus GL and sometimes umbrella. Limits are often specified in the contract and tend to scale with deal size.
- Vendor security reviews ask for a certificate of insurance alongside SOC 2 or ISO reports, and may check that cyber covers data you process for the customer.
- Indemnity and limitation of liability clauses decide how much of a customer's loss you agree to carry. A cap only helps if your policy covers the obligation you signed.
- Investors commonly require D&O, and sometimes key person insurance, through covenants in the investor rights agreement (opens in a new tab) signed at a priced round.
- Public companies must disclose material cybersecurity incidents on Form 8-K, generally within four business days (opens in a new tab) of determining materiality, which shapes both cyber and D&O.
- Office and lab leases typically require GL and property with the landlord as additional insured.
- Government and regulated customers may add requirements of their own, often specified in the contract or the procurement terms.
How Aiden Risk solves each of these problems
An AI risk engine built for commercial insurance, a licensed broker on every account, and 100+ carriers, including admitted and surplus lines markets, so one partner handles the whole program.
| The problem | How Aiden Risk solves it |
|---|---|
| An enterprise customer's procurement team rejected our certificate. | A licensed broker reviews the MSA insurance clause against your policies before you sign, advises on the limits and endorsements it asks for, and issues the certificate once coverage matches. |
| We bought E&O and cyber separately and are not sure they connect. | Aiden runs a coverage gap analysis before binding and shops 100+ carriers, including surplus lines, for forms where tech E&O and cyber are written to fit together. |
| Our contracts promise things our policy may not cover. | Your broker reviews indemnity, limitation of liability and contractual liability wording in your contracts alongside policy exclusions, and negotiates endorsements with carriers where the market allows. |
| We are raising a round and the investors want D&O. | Your broker advises on limits and structure, including Side A and how investor-appointed directors are treated, and places D&O across carriers that write funded startups. |
| We switched carriers and lost our prior acts coverage. | Your broker manages claims-made retroactive dates when you move carriers and arranges tail coverage when a sale or wind-down ends a policy. See the retroactive date trap. |
| The cyber application asks questions we cannot answer well. | Aiden's AI risk engine analyzes 140+ signals about your business, including CVE vulnerability databases, live cyber threat feeds and breach history, so a licensed broker can review your exposure with you before you apply. |
| We are an MSP and one incident could hit every client. | Your broker advises on aggregate limits and sublimits for multi-client events and shops carriers that write IT services firms, including surplus lines markets. |
| Our risk changes every quarter as we ship and hire. | The AI monitors your risk year-round, and a licensed broker acts on every change it flags, from new data types to new states of employment. |
| We do not have time for a long insurance process. | Intake takes 5 minutes, and most straightforward businesses are placed in as little as 48 hours. Aiden Risk charges no fee to work with it, with no platform fee or subscription; it is paid through standard carrier commissions. |
Aiden Risk charges no fee to work with it, with no platform fee or subscription; it is paid through standard carrier commissions. Licensed in 16 states, listed on our licenses page.
Technology insurance questions, answered
What insurance does a tech company need?
Most need technology E&O, cyber liability, D&O and EPLI, plus general liability and property for leases and equipment. Hardware companies add products liability, and companies that wire money add crime with social engineering cover. The right mix depends on your contracts, your data and your funding.
What is the difference between tech E&O and cyber insurance?
Tech E&O covers claims that your product or service failed and cost a customer money. Cyber covers a security or privacy event: breach response, ransomware, business interruption and privacy claims. Many tech companies buy them on one combined form so a claim that is part outage and part breach does not fall between two policies.
How much does tech E&O insurance cost?
The Hartford reports an average minimum premium of $146 a month (opens in a new tab) for its tech E&O small business customers. Real premiums depend on revenue, what your product does, the limits your contracts require and claims history, so a larger SaaS company with enterprise customers will pay well above a small-business average.
Does a startup need D&O insurance before raising money?
Many founders buy it at or just before a priced round, because investor rights agreements commonly require it (opens in a new tab) and experienced directors may not join a board without it. It also covers founders against claims from co-founders, early investors and acquirers. See our guide to D&O for funded startups.
Does insurance cover AI errors?
Sometimes. A well-written tech E&O policy can respond to a claim that your AI product gave a wrong output that cost a customer money, but wording varies and some policies add AI-specific exclusions or questions. Regulatory investigations into AI marketing claims are a separate issue that may fall under D&O or not at all. See AI liability insurance.
Is tech E&O claims-made?
Almost always. It covers claims made during the policy period for work performed after the retroactive date, so keeping that date when you renew or switch carriers matters. If you sell the company or stop operating, a tail (extended reporting period) lets you report later claims for past work.
Guides for technology companies
- Errors and Omissions Insurance for Tech Companies: Coverage, Costs, and Requirements in 2026
- AI Liability Insurance: How Coverage for AI-Driven Products and Services Works in 2026
- D&O Insurance for Funded Startups: Why Your Coverage Becomes Inadequate the Moment You Close a Round
- Why Cyber Insurance Premiums Dropped in 2025 - and What's Coming Next
- The Retroactive Date Trap: How Professional Services Firms Lose Prior Acts Coverage When They Switch Carriers - and What It Costs to Fix It
Ready to see your options?
A licensed broker reviews your current policies and contracts, compares 100+ carriers and comes back with real options for technology companies.
Prefer to talk? Call (650) 292-2812