6 Common Examples of Technology Errors & Omissions Claims

Errors and omissions (E&O) claims have become a major threat to technology companies, and their severity has undergone rapid growth over the last decade or so. Tech E&O insurance offsets these threats by protecting IT companies from the risks of a client experiencing financial losses due to a tech product or service’s inability to perform work. Perhaps you’re considering the pros and cons of tech E&O insurance but don’t fully know what it covers and, therefore, whether or not it is worth it. If that’s the case, here are 6 common examples of technology errors & omissions claims. 


Cybercrime is on the rise and has become a very serious problem around the world. As companies and corporations grow, they deal with large amounts of sensitive data and information, making them a target for cybercrime. It is estimated that more than 33 billion accounts will be breached in 2023, meaning that the earlier you prepare for it, the better. 

Unfortunately, if a client is the target of a cyberattack and sensitive information gets out, you could end up facing lawsuits. Thankfully, with E&O insurance, you can protect yourself and your company from the responsibility of restoring the security of any compromised information.

Breach of Contract

Another common example of technology errors and omissions claims is a breach of contract. This occurs when your business can’t deliver on official commitments by means of a business agreement. This type of situation is the most common professional liability claim. 

As a business, you are obligated to meet your obligations and commitments to your clients, and if you don’t, you may be at risk of a lawsuit. Because it is inevitable that you will enter into contracts while conducting business, you need a way to protect yourself should you be unable to deliver. A tech errors and omissions insurance policy is the best way to protect yourself should a breach of the contract take place.


Claims of professional negligence are common in the business world, and they not only affect you financially but also your credibility. In the tech industry, negligence could be something as simple as coding mistakes that result in bugs or ineffective software. 

Breach of Warranty

One of the most common examples of technology errors & omissions claims is when a breach of warranty takes place. This type of claim is typically due to an unmet expectation the client had about the product or service you were going to provide. 

For example, if you were to tell your client that you would make their website more stable, but it still has bugs and crashes after you are done, they may be dissatisfied enough with your service to file a claim that you didn’t deliver what you promised. 

Misrepresentation and Fraud

This type of claim takes place when a customer feels that you have misrepresented the services you were going to provide. For example, if you quote $500 monthly for a project, then add various fees that bring that total bill to $700 monthly, they may file a claim believing you have not been honest and forthcoming. 

While an E&O won’t necessarily prevent legal action, it will cover the costs related to the lawsuit.

Online Defamation

Another one of the more common claims is online defamation. Since most tech companies manage remote workers, issues such as slander typically occur online. If you or someone in your company makes a false statement that hurts the credibility or reputation of another individual or business, you may end up facing an online defamation lawsuit. 

There are several more technology errors & omissions claims. The best way to protect yourself is to obtain a policy from a group like Post Insurance. We work with our clients to provide coverage tailored to their individual risks. Contact us today to get a quote and find out how we can help protect you and your business!

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