Cyber & Technology
Tech E&O vs Cyber Liability.
A side-by-side comparison: what each policy covers, where they overlap, and when to combine them.
Is Tech E&O the same as cyber insurance?
No. Tech E&O (technology errors & omissions) responds when a customer says your product or service did not perform as promised — bugs, downtime, project failures, missed deliverables. Cyber Liability responds when there is a security or privacy incident — a breach, ransomware, data loss, or a regulator asking questions. They are different coverages, and most technology companies need both because a single incident often triggers both at once.
Where do Tech E&O and cyber coverage overlap?
A SaaS outage caused by a ransomware attack on your platform involves Tech E&O (customer indemnification for downtime) and Cyber (the ransomware itself, breach response, regulatory exposure). Combined cyber + Tech E&O forms exist exactly because of this overlap — but the policy language matters far more than the label on the cover page.
Which coverage do I actually need?
If you build, sell, or service technology, plan on both. OnePark Risk structures Cyber Liability and Tech E&O so the two coordinate without gaps or double retentions — and for companies with a SOC 2 or ISO 27001 audit, we place them through the Agency Controls Qualified Coverage program (underwritten by Tokio Marine Kiln at Lloyd's of London) so verified security earns preferred pricing.
Cyber and Tech E&O by the numbers (as of 2026)
The global average cost of a data breach reached a record $4.99M in 2026, up 12% year over year (IBM Cost of a Data Breach Report 2026). Ransomware stays among the most expensive cyber events: the median ransom payment ran about $1M in 2025, with average recovery costs of $1.53M on top of any ransom paid (Sophos State of Ransomware 2025). Large cyber claims keep climbing — frequency up 14% and severity up 17% in the first half of 2024 (Allianz Commercial, 2024). Typical startup premiums, as of 2026: about $2,900 a year for cyber liability and about $3,700 a year for Tech E&O / professional liability (Vouch, 2026).
Tech E&O vs Cyber Liability
- Trigger — Tech E&O: Failure of your product or service to perform as promised. | Cyber Liability: Security incident, privacy violation, or system compromise.
- Customer outage caused by a bug — Tech E&O: Covered. | Cyber Liability: Generally not covered.
- Customer outage caused by a breach — Tech E&O: Often covered for indemnification obligations. | Cyber Liability: Covered for the breach itself, response costs, and regulatory exposure.
- Ransomware demand — Tech E&O: Not covered. | Cyber Liability: Covered (subject to retention and pre-approval).
- Customer suit over data loss — Tech E&O: Sometimes covered if the loss arose from your service. | Cyber Liability: Covered as third-party privacy liability.
- Regulatory fine (GDPR, state AG) — Tech E&O: Generally not covered. | Cyber Liability: Defense and, where insurable, fines covered.
- Bodily injury or physical damage — Tech E&O: Not covered (commercial GL). | Cyber Liability: Not covered.
- Typical buyer — Tech E&O: Any technology vendor or professional services firm. | Cyber Liability: Any company holding sensitive data, dependent on systems, or with regulatory exposure.
Frequently asked questions
Is Tech E&O the same as cyber insurance?
No. Tech E&O covers claims that your product or service failed to perform — bugs, outages, missed deliverables. Cyber covers security and privacy incidents — breaches, ransomware, data loss, and regulatory action. Most technology companies carry both.
Does cyber insurance cover a software bug that takes my customer offline?
Usually not on its own. A bug or failed deliverable that costs a customer money is a Tech E&O claim. Cyber responds when the outage stems from a security incident such as ransomware or a breach — which is why the two are often written together.
Do I need both Tech E&O and cyber?
Most technology companies do — and most carriers offer them as a combined form for early-stage businesses. We confirm the language matches your actual exposure rather than just buying the bundle.
Will a combined cyber + Tech E&O form cover everything?
Combined forms often sublimit one side. If you sell security services, run an MSP, or have unusual contractual liability, a standalone structure may serve better.
Does a SOC 2 or ISO 27001 audit lower my cyber premium?
Security controls are the single biggest factor carriers use to price cyber and Tech E&O, so an independently validated SOC 2 or ISO 27001 program generally earns better terms. OnePark Risk places audited companies through its Agency Controls Qualified Coverage program for preferred pricing.
How much do cyber and Tech E&O cost?
As of 2026, typical startup premiums run about $2,900 a year for cyber liability and about $3,700 a year for Tech E&O / professional liability (Vouch, 2026). Your price depends on revenue, data held, contracts, and security controls.