Technology drives growth, but it also introduces new risks. When a system error, coding issue, or service failure causes a client financial loss, your company could face legal and financial consequences. Technology Errors and Omissions (Tech E&O) Insurance helps protect against those outcomes.

The cost of this protection depends on how your business operates and the level of exposure it carries. Understanding what insurers evaluate when pricing coverage helps you make informed decisions and manage cost effectively.

How much does Tech E&O Insurance cost?

There is no single cost for Tech E&O insurance. Premiums are based on your company’s unique risk profile and the potential severity of a claim. Insurers base pricing on a number of factors, including company size, industry, policy size, claims history, security posture, and more.

Company Size and Operations

Underwriters look at your revenue, employee count, and client volume as indicators of exposure. A company with more contracts, users, or transactions faces greater potential for an error that could trigger a claim.

Industry and Client Type

Carriers assess the kinds of clients you serve and the regulatory environment in which you operate. Businesses that work with enterprise or compliance-heavy clients face stricter performance expectations and higher potential losses. Companies serving smaller or less regulated clients may fall into lower-risk categories.

Coverage Limits and Deductibles

Premiums generally scale with the amount of coverage available under the policy. Higher limits increase potential payouts, which raises cost. A higher deductible reduces the premium but increases the amount your company would pay before insurance responds.

Contractual and Regulatory Requirements

Many enterprise contracts specify minimum levels of E&O and Cyber coverage. Meeting those requirements might mean higher limits or additional endorsements, which can raise your premiums.

Claims History

Insurers review your history of past claims or legal disputes. A record of frequent or high-severity claims can increase pricing. A clean record demonstrates operational control and can improve your position with underwriters.

Security, Quality Assurance, and Controls

Strong internal processes often lead to better rates. Carriers favor companies that maintain cybersecurity programs, document incident response plans, and perform regular testing to prevent service or data errors.

Geographic Footprint

Operating across multiple states or internationally adds complexity and legal exposure. Underwriters account for regional differences in regulation, litigation costs, and defense expenses when setting premiums.

Managing and Controlling Your Premiums

While some pricing factors are fixed, many are within your control. Strong operational discipline can help manage your cost over time.

Practical steps include:

• Maintaining clear cybersecurity and privacy policies
• Implementing structured testing and release management processes
• Reviewing client contracts to clarify liability limits
• Training employees on compliance and data handling
• Working with a broker who understands technology exposures and insurer expectations

Each of these actions signals maturity to underwriters and can help improve your pricing position at renewal.

Why Cost Shouldn’t Be the Only Factor

Premium is only one part of the decision. Selecting coverage solely on price can leave your company underinsured or exposed to gaps. The right balance of cost, coverage scope, and claims support protects your financial stability and enables you to meet contractual obligations with confidence.

When to Review Your Tech E&O Policy

A Vouch advisor will review your full insurance program with you before your renewal to ensure it still fits your needs. This is done annually but could be sooner if your company changes significantly. Triggers for reassessment include:

• New enterprise or international clients
• Expansion into regulated markets
• Increased revenue or transaction volume
• Changes to product or service scope
• Growth in data handling or infrastructure scale

Frequently Asked Questions

What determines the cost of Tech E&O insurance?

Insurers evaluate your company’s size, operations, industry, and client exposure. They also consider coverage limits, claims history, and the strength of your internal controls.

Does my industry affect pricing?

Yes. Technology companies working with enterprise or regulated clients face stricter standards and higher exposure, which can increase premiums.

Can I reduce my premium without reducing coverage?

Maintaining strong cybersecurity, quality assurance, and contractual risk management may help control cost while preserving coverage strength.

How often should I review my Tech E&O premium and policy?

At least once a year, or when your company’s client base, revenue, or services change meaningfully.

Can Tech E&O and Cyber coverage be combined?

Many insurers offer integrated policies that combine Tech E&O and Cyber protection. Vouch can help you get the right coverage that fits your needs.

Vouch Specialty Insurance Services, LLC (CA License #6004944) is a licensed insurance producer in states where it conducts business. A complete list of state licenses is available at vouch.us/legal/licenses. Insurance products are underwritten by various insurance carriers, not by Vouch. This material is for informational purposes only and does not create a binding contract or alter policy terms. Coverage availability, terms, and conditions vary by state and are subject to underwriting review and approval.