Description This article provides an overview of Cyber Liability Insurance and Technology Errors & Omissions (Tech E&O) Insurance, explaining their coverage, differences, and considerations for non-resident contractors.
What is Cyber Liability Insurance?
Cyber Liability Insurance covers losses related to cybersecurity incidents, such as:
- Data breaches
- Hacks
- Ransomware attacks
- Privacy violations
This insurance helps cover costs for:
- Notifying affected individuals
- Restoring compromised data
- Business interruption
- Regulatory fines
Cyber Liability Insurance includes:
- First-party coverage: Protects your own business from financial losses.
- Third-party coverage: Covers lawsuits from affected customers or partners.
Is Cyber Liability a Different Insurance Policy than Tech E&O Insurance?
Yes, Cyber Liability and Technology Errors & Omissions (Tech E&O) are separate policies, though they can sometimes overlap or be bundled together.
What Does Technology Errors & Omissions (Tech E&O) Cover?
Tech E&O Insurance covers financial losses suffered by clients due to your company's mistakes, negligence, or failure to perform in providing technology services or products. It protects against lawsuits related to:
- Errors in software
- Missed deadlines
- Coding issues
- Failure to meet contract terms
This coverage is primarily third-party coverage, meaning it protects your company from client lawsuits for financial losses.
Are Non-Resident Contractors Covered Under Cyber Liability or Tech E&O Policies?
Coverage for non-resident contractors varies by insurance carrier.
If your insurance carrier does not provide coverage for non-resident contractors, VPM recommends contacting Alex Araiza, an insurance broker with Crane Agency, for assistance.
Alex Araiza
314.444.4925