Your software didn't do what you said it would.
Professional liability for technology services. It helps address the defence and damages when a customer claims your product caused them economic loss - a missed SLA, an integration failure, an AI hallucination.
Covered sections in solid line. The hatched strip is what this policy leaves exposed — click through to see if it applies to you.
The cover that lives inside this policy.
Defence & damages from claims of software failure or negligence
Missed SLA and uptime-contract liabilities
Integration errors and economic loss to customers
AI hallucination and model-output liability (with AI E&O endorsement)
Intellectual-property infringement arising from your product or training data
Bodily injury from software error (where affirmatively granted)
Defence & damages from claims of software failure or negligence
Missed SLA and uptime-contract liabilities
Integration errors and economic loss to customers
AI hallucination and model-output liability (with AI E&O endorsement)
Intellectual-property infringement arising from your product or training data
Bodily injury from software error (where affirmatively granted)
Vertical-specific risk breakdown.
The same policy prices differently the moment you leave "software company" behind.
Enterprise MSAs require $2M–$5M E&O with named-insured extensions for customers.
Hallucination liability and training-data IP - the AI E&O endorsement is non-negotiable.
A bug in your SDK becomes every customer's outage - contingent claims scale fast.
Platform-failure outages can drive class-action exposure.
Breaches, losses, and the policy that answered.
Reported incidents and clearly-labeled composite scenarios - what your underwriter is actually pricing.
One vendor zero-day. 2,700+ customers breached.
What happened: The Clop group exploited a MOVEit Transfer SQL-injection flaw (CVE-2023-34362), cascading the breach through thousands of downstream organizations' file transfers - banks, pension plans and public agencies.
Exposure it created: Tens of millions of individuals' records exposed; aggregate loss widely estimated in the billions of dollars.
Coverage that may respond: Cyber (vendor / supply-chain and contingent business interruption) and Tech E&O for downstream customer claims both engaged.
Vendor concentration is a Cyber line item now - underwrite contingency, not just your own perimeter.
Tribunal holds airline liable for its own chatbot's lies.
What happened: In Moffatt v. Air Canada, the BC Civil Resolution Tribunal found the airline vicariously liable after its chatbot invented a bereavement-fare policy, rejecting the argument that 'the chatbot is its own entity.'
Exposure it created: CAD $812.02 awarded to the customer - and a Canadian precedent tying companies to their AI's misrepresentations.
Coverage that may respond: Tech E&O with an AI / model-output endorsement may respond; standard Cyber and CGL typically will not.
An LLM feature is a representation your company can be sued for - carry AI E&O the day you ship it.
When the billing vendor got hit, its customers sued the startup.
What happened: A 40-person Toronto SaaS company discovered its billing vendor was a MOVEit-affected downstream victim; customer card data and contact lists required notification within days.
Exposure it created: About $380K in forensic, notification and credit-monitoring spend, plus two churned enterprise accounts.
Coverage that may respond: Cyber contingent business interruption and notification cover responded; the vendor's own policy did not indemnify the startup.
Your vendor's breach is your customer's problem - and yours. Contingent BI isn't optional at any stage.
Customer sues after the model spits out a wrong, costly number.
What happened: A Series A AI vendor's model produced materially wrong defaults for a customer, who sued for the economic loss the bad output caused downstream.
Exposure it created: $900K to defend and settle; an AI-output carve-out added to future customer contracts.
Coverage that may respond: Tech E&O with an AI model-output endorsement responded; the base E&O policy alone was ambiguous on hallucination.
Ship an LLM without an AI E&O endorsement and you're self-insuring the hallucination.
You rarely buy Tech E&O alone.
Software-failure and data-breach claims are rarely separable in tech disputes.
Explore Cyber & PrivacyA missed SLA or product failure can become an investor claim against your directors.
Explore Management D&OTech E&O is one piece of the stack. Depending on your business model, other exposures may also be worth considering — bring them together in the Tower Builder.
Keep exploring
The questions founders ask before they bind.
Still not sure what applies to you?
This page covers the basics of Tech E&O. For a plan specific to your stack and stage, Truly Insurance's brokers can walk you through it - no pressure, no jargon. You can also reach the team directly at trulyinsurance.ca.
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