Glossary / People & market / Tech Insurance

Tech Insurance

Also known as: Technology Insurance · Insurance for Tech Companies · Startup Tech Insurance

People & market

A bundle of coverages technology companies typically carry — usually Tech E&O, Cyber, General Liability, and D&O — rather than a single standalone policy.

"Tech insurance" is a catch-all term for the set of policies a software, SaaS, or technology company needs, not one specific product. The core is usually Technology Errors & Omissions (Tech E&O), which covers financial loss when your product fails, often packaged with Cyber Liability for data breaches. Growing companies add General Liability, Directors & Officers (D&O), and Employment Practices Liability as they hire, raise capital, and sign enterprise contracts.

Where you'll see it

Vendor contractQuotePolicy

Why it matters for your business

  • Enterprise customers increasingly require Tech E&O and Cyber coverage in the contract before they will sign.
  • A single missed SLA, outage, or data breach can generate a claim larger than an early-stage company's runway.
  • Buying the right combination — rather than one generic policy — closes coverage gaps between product failure, security incidents, and management liability.

People also ask

What insurance does a tech company need?

Most technology companies start with Technology Errors & Omissions (Tech E&O) and Cyber Liability, which together cover product failures and data breaches. As they grow, they add General Liability (required by landlords and some clients), Directors & Officers (required by investors at Series A), and Employment Practices Liability once they have employees. The exact mix depends on your stage, contracts, and the data you handle.

How much does tech insurance cost for a startup?

Costs vary widely by revenue, data exposure, and coverage limits. Early-stage startups often pay roughly $2,500–$8,000 per year for a combined Tech E&O and Cyber program, with D&O adding $1,500–$4,000 when investors require it. Because pricing depends heavily on your specific risk profile and contract requirements, comparing quotes from multiple carriers is the best way to get an accurate number.

Is tech insurance the same as cyber insurance?

No. Cyber insurance is one part of a tech insurance program. Cyber covers security incidents like data breaches, ransomware, and privacy claims, while Tech E&O covers financial loss from your product failing to perform (bugs, outages, missed SLAs). Many tech companies need both, because a single incident can involve both a security failure and a product-performance dispute.

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Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.