Tech E&O insurance for AI companies
When customers rely on an AI product or technology service, allegations of failure, delay, incorrect output or implementation problems can create financial-loss claims. Technology E&O is one coverage category often reviewed for that exposure.
What Technology E&O is designed around
Technology E&O generally addresses certain claims alleging that a technology product or service failed to perform as promised and caused a customer financial loss. Exact coverage varies by policy.
AI scenarios that can create E&O questions
Examples can include an AI feature producing materially wrong output, a software integration failing, an agent taking an incorrect action, an outage interrupting a customer workflow, or implementation work not meeting contractual expectations.
Contracts drive the conversation
Service-level agreements, warranties, indemnification language, limitation-of-liability clauses and insurance requirements can all affect the risk presented to an insurer.
Tech E&O is not the same as Cyber
Cyber coverage usually focuses more on privacy and security events. Technology E&O focuses more on alleged failure of technology products or services. Some packages combine them, but the details matter.
Related AI insurance guides
AI liability insurance · AI cyber insurance · Tech E&O for AI · AI startup insurance · AI SaaS insurance
Frequently asked questions
Do AI SaaS companies usually review Tech E&O?
It is commonly considered when customers rely on software or technology services, but whether it is appropriate depends on the specific business.
Does Tech E&O cover AI hallucinations?
Potentially in some circumstances, but there is no universal answer. The policy wording, allegations and facts determine coverage.
Can LunarQuote bind Tech E&O coverage?
No. LunarQuote routes requests to licensed insurance professionals who can discuss available options.
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