Tech E&O vs. Cyber Liability: What Agents Need to Know

As technology continues to power every industry, your clients are facing a growing wave of digital risks—from software errors to full-scale cyberattacks. While many agents understand the need for protection, confusion often arises around two key coverages:

Technology Errors & Omissions (Tech E&O) and Cyber Liability.

Let’s break down how they differ, where they overlap, and when it’s critical to offer both.

What Does Tech E&O Cover?

Technology Errors & Omissions (Tech E&O) is designed to protect tech professionals and companies against claims arising from:

• Mistakes or failures in their professional services (e.g., coding errors, software bugs, misconfigurations)
• Failure to perform services as promised in a contract
• Negligence or omissions that cause financial loss for clients

Examples of who needs it:

• IT consultants
• SaaS providers
• App developers
• Network engineers

Real-life claim: An IT consultant incorrectly configures a firewall, exposing their client’s data to outside threats. The client sues for damages—even though no actual breach occurred.

Tech E\&O responds to financial losses caused by the services themselves, regardless of whether data was compromised.

What Does Cyber Liability Cover? 

Cyber Liability Insurance kicks in when there is a data breach or cyber event, helping cover:

• Breach notification costs
• Forensic investigations
• Ransomware payments
• Legal defense for privacy violations
• Business interruption losses

Who needs it?

• Any business storing sensitive data (even non-tech companies), including:
• Law firms
• Medical practices
• Retailers
• Financial advisors

Real-life claim: A client’s network is breached after a phishing email attack. Sensitive customer data is stolen, and the company must notify affected parties, hire legal help, and offer credit monitoring.

Cyber Liability addresses the consequences of data compromise, not the failure of the service that caused it.

Why You Often Need Both

In today’s connected world, many claims involve both service failures and data breaches. Offering just one type of coverage may leave dangerous gaps.

Scenario: A software developer’s update crashes their client’s e-commerce site and exposes customer data. The developer could face:

• Tech E&O claim for service failure.
• Cyber claim for privacy breach and notification costs
• Pairing Tech E&O and Cyber Liability ensures a more complete protection plan.

Why Stuckey & Company?

At Stuckey & Company, we specialize in helping agents navigate the complexities of tech-sector risk. With access to top-tier carriers, customizable program structures, and deep underwriting expertise, we make it easy to:

• Offer combined Tech E&O + Cyber policies
• Target growing tech verticals
• Submit fast, clean applications

We’ve helped thousands of agents protect their clients and grow their tech books — and we’re ready to help you.

Learn How to Guide Your Clients to the Right Protection

Your clients are depending on you to understand the risks behind their digital operations. We’re here to back you up with coverage, clarity, and confidence.

Have a client in mind? Contact our team or submit a risk to get started today.