Technology failure can create financial loss without physical damage.

Technology services to disclose

Software development, SaaS, systems integration, managed IT, cloud hosting, data migration, cybersecurity consulting, telecommunications, hardware sales, help desk, payment processing and outsourced services create different exposures. Identify subcontractors and third-party platforms the service depends on.

Potential allegations

• Software or implementation failed to meet specifications
• A migration corrupted, lost or delayed access to data
• Downtime interrupted the client’s operations
• Professional advice or configuration created a security weakness
• A project exceeded the promised schedule or budget

E&O and Cyber are connected but not identical

Technology E&O may address claims that the insured’s technology service caused a client’s financial loss. Cyber coverage may address the insured’s own breach response, privacy liability, network security, business interruption, cyber extortion and related events. Integrated forms can reduce gaps, but definitions, exclusions and limits still require review.

Contracts and risk transfer

Provide standard customer agreements, service-level commitments, warranties, limitation-of-liability clauses, indemnities and data-security obligations. Unlimited liability or performance guarantees can exceed the policy’s intended scope.

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