Profession
Professional liability insurance for IT Professionals
Independent developers, sysadmins, and IT consultants.
Risks we see most
What actually goes wrong.
- Software defects causing downtime
- Data loss during migrations
- Missed SLA obligations
Quick qualifier
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Illustrative claim scenarios
How a policy responds.
Migration data loss
Failed cutover corrupted client CRM — recovery costs and lost revenue claimed.
Scenarios are illustrative examples of how this coverage is designed to respond — they are not actual client cases, and coverage always depends on policy terms and underwriting.
Where you work
IT Professionals coverage, state by state.
What professional liability covers for IT Professionals
Technology E&O (tech professional liability) protects developers, IT consultants, MSPs, and SaaS builders when a client claims your work or product failed them — a botched migration that lost data, an integration bug that halted their operations, missed go-live dates, or a security misconfiguration that let an attacker in. In technology work the line between “your error” and “their loss” is short and well-documented in tickets, which is why claims in this space settle on evidence quickly and defense costs matter so much.
Modern tech E&O is usually written as a combined tech E&O + cyber form: the E&O side covers negligence in your services and product failure claims, while the cyber side covers breaches of data you hold or systems you touch (see cyber liability and first-party cyber). MSPs should pay particular attention to contingent exposure — when a client is breached through your RMM tooling, their carrier will look upstream at you. Client MSAs commonly require $1M–$2M in tech E&O plus cyber before signature.
What it professionals typically pay
Tech E&O pricing keys on revenue, what you build or manage (custom software and MSP/security work price above staff augmentation), contract sizes, and security posture — carriers increasingly ask about MFA and backups even for the E&O side.
| Business profile | Typical annual E&O premium range* |
|---|---|
| Freelance developer/consultant, under $150k revenue | ~$500 – $1,200 |
| Small consultancy, $150k–$500k revenue | ~$900 – $2,500 |
| MSP or dev shop, $500k–$2M revenue | ~$2,000 – $6,000 |
| MSP with security services / SaaS with enterprise clients | ~$4,000 – $12,000+ |
*Illustrative market ranges based on typical small-business placements; your premium depends on revenue, limits, claims history, contracts, and carrier appetite. Not a quote or offer of coverage.
Want the full pricing breakdown? See the detailed cost guide.
Frequently asked questions
What is the difference between tech E&O and cyber insurance?
Tech E&O covers claims that your professional services or technology product caused a client financial loss. Cyber insurance covers data breaches and security events — both your own systems (first party) and claims from others (third party). Because tech work blends the two, most carriers sell a combined tech E&O/cyber policy so a claim doesn’t fall in the gap between them.
Do I need E&O if my contracts have a limitation of liability?
Yes. Limitation-of-liability clauses are valuable but routinely challenged, often capped at fees paid, and don’t stop a client from suing — you still pay to defend. Insurance funds the defense and any covered settlement; the contract clause then works to cap the damages side.
My client requires $2M in coverage but I am a one-person shop. Is that normal?
Very. Enterprise procurement templates apply the same insurance schedule to a solo consultant as to a 500-person vendor. A $2M limit for a solo tech consultant is usually only modestly more expensive than $1M — it’s often cheaper to buy the limit than to negotiate the contract.
Does E&O cover me if a client is breached through software I built?
Claims alleging your negligent work created the vulnerability are the reason combined tech E&O/cyber forms exist — the client’s claim lands on the E&O/third-party cyber side. Coverage depends on policy terms, and carriers will expect that you followed reasonable security practices.
Related: cyber liability · first-party cyber · E&O basics.