E&O Insurance for Startups

Corgi Team

Mar. 16 2026 |
12 min read

E&O insurance (Errors and Omissions), also called Technology E&O or Professional Liability, covers claims that your product, software, or services caused a customer financial loss. For many startups, Tech E&O is the policy that unlocks enterprise contracts because procurement teams ask for it by name.

We offer instant Tech E&O insurance built for software and technology companies, providing coverage that maps directly to your SaaS, APIs, professional services, and fast-changing AI stack.

What is Technology E&O insurance?

Errors and omissions insurance technology, commonly called Tech E&O, covers your defense costs and damages when a customer alleges your AI stack underperformed or your work caused them a financial loss.

This is different from:

• CGL (General Liability): Bodily injury and property damage.

• Cyber Liability: Security incidents, data breaches, privacy claims.

• D&O: Management decisions and investor or shareholder claims.

Because we are backing the builders, our Tech E&O directly protects your revenue if your software or AI services fail to perform.

Who needs Tech E&O insurance

Tech E&O is most common for:

• SaaS companies selling B2B subscriptions.

• AI companies providing models, agents, or decision tools.

• Developer platforms, APIs, infrastructure, and tooling.

• Fintech and payments software (often paired with cyber).

• Marketplaces that provide services, workflows, or outcomes.

• Startups handling implementation, onboarding, or professional services.

If customers rely on your product to run operations, route money, make decisions, or meet compliance requirements, you need the errors and omissions insurance technology companies depend on.

When startups typically buy Tech E&O

You typically need technology errors and omissions insurance (Tech E&O) when:

• A customer contract requires 'E&O' or 'Professional Liability.'

• Procurement asks for a Certificate of Insurance (COI).

• You sign your first enterprise SOW or MSA.

• You start charging for implementation or services.

• You move upmarket and take on SLAs.

• You integrate your AI stack into critical systems like billing, identity, or security.

What Tech E&O typically covers

Coverage depends on the policy wording, but Tech E&O is designed around claims like:

• Failure of your software, platform, or service to perform as intended.

• Errors in professional services, configuration, or implementation.

• Missed deadlines tied to project delivery (when tied to covered allegations).

• Negligence allegations tied to your product or services.

• Claims arising from customer reliance on your outputs, reports, or recommendations.

• Defense costs for covered claims, often the biggest cost driver.

We provide Tech E&O on a claims-made basis, meaning you must report any claims during the active policy period to maintain continuous protection as your startup scales.

What Tech E&O often does not cover

Tech E&O is not 'everything that can go wrong.' Common limitations include:

• Intentional wrongdoing, fraud, or dishonest acts.

• Known issues or prior claims.

• Pure breach of contract claims that are not tied to covered allegations.

• Bodily injury and property damage (CGL).

• Security incidents and privacy claims (typically addressed by cyber, though overlap can exist).

• Fines and penalties where uninsurable by law.

• Warranty guarantees that go beyond reasonable professional standards.

If your MSA promises broad warranties or unlimited liability, it creates gaps no policy can fix. We recommend aligning your contracts directly with your insurance limits to ensure your startup remains fully protected.

How limits and retention work

When choosing errors and omissions insurance, technology founders usually focus on two critical numbers: the Limit (the maximum paid) and the Retention (what you pay before coverage responds).

• Enterprise customers may require minimum limits in the contract.

• Higher revenue and higher dependency customers increase exposure.

• SLAs, uptime commitments, and indemnities can increase severity.

If you are unsure, use your largest customer’s requirements as a baseline, and we will help you instantly size your policy for the next 12 months of sales.

Common Tech E&O claim scenarios for startups

Examples are not promises of coverage, but they map to why companies buy Tech E&O:

• A customer alleges an integration failed and caused invoicing errors and financial loss.

• A deployment misses requirements and the customer claims rework costs and delays.

• An outage leads to business interruption and a customer alleges your platform caused their loss.

• A product bug creates incorrect outputs and the customer alleges reliance damages.

• A services project runs over scope and the customer alleges negligence in delivery.

Why choose Corgi for Tech E&O

Built for how software is sold

Corgi is designed to help you get covered without slowing down the deal cycle when procurement asks for E&O.

Underwriting aligned to technology risk

Corgi focuses on signals like what you sell (SaaS vs services), contract structure (SLAs, indemnities), data handling, and deployment models.

One place to build your full startup insurance stack

Tech E&O works best when coordinated with Cyber Liability, CGL, D&O, EPLI, HNOA, and Fiduciary. We help you build a bundle that matches how customers and investors evaluate risk.

FAQs

What does E&O mean for a startup?

E&O means Errors and Omissions. It usually refers to Technology E&O or Professional Liability that covers claims your product or services caused customer financial loss.

Is Tech E&O the same as cyber insurance?

No. Cyber is designed for security incidents, breaches, and privacy claims. Tech E&O is designed for performance, delivery, and professional services disputes.

Do SaaS companies need E&O insurance?