Technology & Internet Insurance

Industry overview

Technology and internet companies deliver products and services that customers depend on to run their own operations, so an error or outage can ripple into significant client losses. Their core exposures are professional and cyber rather than physical.

These businesses also hold large volumes of data, raise capital, and operate under fast-moving contracts. Insurance for the sector commonly centers on professional liability and cyber coverage, often coordinated with management liability for funded companies.

Common business types

Software and SaaS companies
IT services and managed providers
Web and app development firms
Data and analytics businesses
E-commerce platforms and marketplaces
Cloud and hosting providers

Common risks

Professional errors

Software defects, errors, or failures to perform can cause client financial harm.

Cyber and data breaches

Holding large volumes of data creates substantial breach exposure.

Service interruptions

Outages can disrupt clients and lead to claims and reputational harm.

Intellectual-property disputes

Software and content can lead to infringement allegations.

Investor and governance risk

Funded companies face management-liability exposure from investors and boards.

Contractual liability

Client agreements commonly impose indemnity and coverage requirements.

Common insurance requirements

Client contracts frequently require technology firms to carry professional liability (often combined with cyber as a tech E&O policy) at specified limits, with additional-insured status. Companies raising capital are commonly asked by investors to carry directors and officers coverage, and firms with employees carry workers compensation.

Recommended coverages

Core Coverage

Contractual Coverage

Professional Liability Insurance Core coverage for software and service errors, commonly written with cyber as tech E&O.

Additional Protection

How much does it cost?

There is no single price for technology & internet insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.

Professional Liability Insurance

$500–$2,000 per year for many small firms
Cyber Liability Insurance

$1,000–$3,000 per year for many small businesses
Directors & Officers Insurance

$1,500–$5,000 per year for many private companies
General Liability Insurance

$500–$1,500 per year for many small businesses
Business Owners Policy

$1,000–$3,000 per year for many small businesses

These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.

Get your real price Cost guidance last reviewed June 2026

Hypothetical claim examples

Software failure

A software defect is alleged to have caused a client financial loss. Professional liability may help respond to the claim, subject to policy terms.

Data breach

A breach exposes customer data. Cyber liability may help with response, notification, and resulting liability, subject to terms.

Investor claim

Investors allege a governance failure. Directors and officers coverage may help with defense and any covered settlement, subject to terms.

Frequently asked questions

What is tech E&O?

Tech E&O commonly combines professional liability and cyber coverage into one policy tailored to technology companies, addressing both service errors and data exposure.

Do startups need directors and officers coverage?

Investors commonly require D&O before funding, and it helps protect leadership against governance and investor-related claims.

Is general liability necessary for a software company?

Even largely digital firms have offices, client visits, and events, so general liability commonly remains part of their program.

Why do clients require specific coverage limits?

Clients depend on technology vendors and commonly require professional and cyber limits, plus additional-insured status, in their contracts.

Does cyber cover service outages?

Some cyber and tech E&O policies address business interruption from covered cyber events, but terms vary, so the policy details matter.

How do I get a quote for my business?

Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.

All Technology & Internet business types

Get covered for any of the 25 business types in this industry.