Foundational Explainer · 8 min read
Tech E&O vs Cyber Liability: When You Need One, the Other, or Both
Tech E&O and Cyber are routinely confused, even by experienced founders. They cover related but distinct exposures, and most technology firms need both — usually combined.
About the author
Written by Reza.
The simple distinction
Cyber covers the consequences of a security event (breach, ransomware, regulatory action). Tech E&O covers the consequences of your product not working as promised (errors, omissions, performance failures).
Where they overlap
If a customer sues you because a security incident in your product caused them harm, both policies could respond. Combined-form Tech E&O + Cyber policies eliminate the coverage-gap question entirely.
When to combine
Any technology firm with paying customers should consider a combined form. Combined forms typically price better than two separate policies. Coordination with D&O is easier on a combined form.
Can I just buy Cyber and skip Tech E&O?
If your product touches customer operations, you almost certainly need Tech E&O too. Cyber alone won't respond when a customer claims your product malfunctioned.
Frequently asked questions
Can I just buy Cyber and skip Tech E&O?
If your product touches customer operations, you almost certainly need Tech E&O too. Cyber alone won't respond when a customer claims your product malfunctioned.
This material is general educational information, not legal, tax, or insurance advice. Coverage availability, policy terms, and regulatory requirements vary by state, carrier, and applicant.