Tech E&O in Numbers
80%
Tech Co.s Using AI
Over 80% of technology companies are now integrating some form of AI into their products or operations.
$1M
Average E&O Claim
The average Tech E&O claim costs between $500,000 and $1.5 million, depending on industry and client size.
70%
Contracts require
Tech E&O
Enterprise contracts now require Tech E&O with minimum limits of $5 million or more.
60%
SLA Driven
Claims
60% of Tech E&O claims are driven by allegations of SLA failures or performance shortfalls.
Technology Errors & Omissions (Tech E&O) insurance is the most critical, and most often misunderstood, policy for modern tech companies. It protects your business when a product failure, service disruption, or integration issue leads to financial harm for your clients, or their clients. These claims often stem from contractual disputes, missed SLAs, or system errors, and can cascade through multiple layers of liability.
Tech E&O Coverage
We didn’t just adapt to Tech E&O - we helped build the category.
Upward Risk Management was founded by attorneys and insurance experts who have written the policy language, structured the programs, and defended the claims that shaped today’s Tech E&O market. We’ve advised startups, public companies, and the carriers themselves.
We know how claims unfold because we’ve been inside the room when they do. We bring that foresight to every policy we negotiate, making sure your coverage is designed not just to respond, but to withstand.
Tech E&O Risk Explained
It Starts With a Promise
Your product or service (API, platform, infrastructure) is sold with a performance expectation — uptime, accuracy, security, or processing speed.
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Example: A B2B lending API guarantees 99.99% uptime and instant credit decisions.
Something Breaks
A code error, outage, integration issue, or misconfiguration causes your product to underperform or fail — even temporarily.
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Result: A client can't process loans or user transactions — and they lose revenue, customers, or trust.
Your Client is Harmed
The client experiences financial harm and turns to you to recover their loss. That’s the first-party claim from your client — and where Tech E&O responds.
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Allegation: Negligence, failure to perform, breach of contract or service levels.
The Client’s Client Gets Involved
The downstream party (your client's customer) suffers too - lost funds, delayed services, bad data. They sue your client, and your client brings the claim back to you.
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This is the second layer of liability - the one that separates true Tech E&O programs from generic “professional liability” policies.
Who Pays?
Without Tech E&O, you're paying out-of-pocket to defend the claim and potentially cover damages - even if the lawsuit didn’t name you directly.
A well-structured Tech E&O policy responds upstream and downstream, covering:
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Direct client losses
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Indemnity exposure
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Contractual liability
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Defense against cascading lawsuits
Why it Matters
In tech, you don’t have to be named in a lawsuit to be liable - just be the root cause.
URM structures Tech E&O coverage to follow the chain of responsibility, from the original failure to every stakeholder affected by it.
What is Tech E&O
Technology Errors & Omissions (Tech E&O) Insurance protects your business when your technology causes financial harm.
Whether it’s a software bug, service outage, failed integration, or missed SLA - if your product doesn't perform as promised, Tech E&O responds.
It covers legal defense, settlements, and contract-related liabilities tied to professional negligence, performance failure, or unmet expectations.
In a world where every tech company is also a service provider, Tech E&O is the backbone of risk protection - especially when a single outage can trigger client losses, investor scrutiny, and cascading liability.