Does tech E&O cover losses caused by an AI model's output?

This is the line meant to respond when your technology's work causes a customer a financial loss, and a model's output is your technology's work. Whether a specific policy responds depends on its wording; some carriers have started filing AI exclusions, which is why every form gets read before anything binds.

What's the difference between tech E&O and general liability?

General liability answers injuries and damage to physical property. Tech E&O answers money a customer lost because your product or service failed. A software failure claim lands on E&O, not general liability.

Do we need E&O before we have revenue?

Most companies add it at their first customer contract. Enterprise procurement often makes it a condition of signing, so having it in place shortens deals rather than delaying them.

Is cyber coverage included in tech E&O?

Carriers frequently sell them as one combined tech E&O and cyber form, but they answer different claims: E&O covers your technology failing a customer, cyber covers your systems being breached. A combined form needs both parts read.

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Coverage line

Professional Liability (Tech E&O)

Covers you if your technology or service doesn't work as promised and causes a customer financial loss.

What it typically covers

Financial loss a customer suffers because your product or service failed
Alleged errors, omissions, or negligence in your professional work
Legal defense for covered claims
Claims tied to missed specifications or performance shortfalls

A claim it answers

Your perception software misclassifies inventory for a logistics customer and they trace weeks of mis-shipments back to it. They demand you make them whole.

Where it fits

Standard for companies selling software, AI systems, or engineering services. Enterprise procurement teams often require it before signing.

Common questions

Does tech E&O cover losses caused by an AI model's output?: This is the line meant to respond when your technology's work causes a customer a financial loss, and a model's output is your technology's work. Whether a specific policy responds depends on its wording; some carriers have started filing AI exclusions, which is why every form gets read before anything binds.
What's the difference between tech E&O and general liability?: General liability answers injuries and damage to physical property. Tech E&O answers money a customer lost because your product or service failed. A software failure claim lands on E&O, not general liability.
Do we need E&O before we have revenue?: Most companies add it at their first customer contract. Enterprise procurement often makes it a condition of signing, so having it in place shortens deals rather than delaying them.
Is cyber coverage included in tech E&O?: Carriers frequently sell them as one combined tech E&O and cyber form, but they answer different claims: E&O covers your technology failing a customer, cyber covers your systems being breached. A combined form needs both parts read.

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Your tech failing and costing a customer money.

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This page describes a line of coverage in general terms. It is not an offer of insurance and not evidence of coverage. Carrier appetite, policy wording, licensing, and availability govern every quote and every claim.