Technology Errors & Omissions


The Betterley Report: Technology Errors & Omissions Market Survey—2018

2018 Report Highlights


insurers analyzed


pages of charts

Market Information Based on 4 Categories:

  • Targeted Insureds by Size
  • Targeted Insureds by Industry
  • Prohibited Insureds
  • Whether Startup Insureds Can Be Written
Updates inside the full report include the following.
  • 114 pages with 17 different kinds of charts comparing 23 of the most prominent insurers writing technology errors and omissions (E&O) insurance
  • An update on how cyber breaches and tech failures are threatening tech providers and their insurers
  • A survey of how both small-to-midsized market and large market insurers anticipate their rates changing in the near future
  • An analysis of the level of reinsurance support for technology E&O products
  • An update on restricted classes of business
  • A look at available capacity and retention levels
  • An update on the evolution of data privacy coverage—both for privacy breach of the insured's own data AND privacy breach of client data
  • A look at how media liability coverage is finding its way into technology E&O insurance
  • How subcontractor coverage and the definition of "products" and "services" can impact coverage
  • A look at how "hammer clauses" are most commonly being utilized
  • An analysis of exclusions that are particularly applicable to technology E&O, including: cost estimates exceeded, performance delay, security breach or unauthorized access, intellectual property, and public key infrastructure
  • A look at the types of risk management services that are becoming increasingly prevalent in technology E&O policies

Why The Betterley Report?

Agents and Brokers—Sell more and grow revenue by pinpointing errors in competitors' policies/proposals.
Risk Managers and Insurance Buyers—Identify, eliminate, or avoid coverage gaps with coverage comparison charts.
Underwriters—Research competitors with quick policy comparisons.
Attorneys—Keep up with year-to-year trends in policy form development.
Consultants—Identify markets and match them up to your clients' needs.

Imagine that you or your client is tasked with handling and storing the data of a large, multinational company. Over the course of months, a backdoor into the data storage software is taken advantage of by hackers, and almost all of the records are compromised. By the time the vulnerability is discovered, the situation is out of control, and a barrage of lawsuits are soon filed against your (or your client's) company for errors in the safeguarding of the data in question. Along with the reputational damage that the headlines bring, costs begin to rack up in the form of defense expenses and, eventually, costly settlements.

  • "What are the best insurance products available to protect against this circumstance?"
  • "How can financial losses be minimized?"
  • "How could my company (or my client) have been better prepared for this liability?"

Depending on whether you are the risk manager, the agent or broker, the consultant, or any other role, these are likely the questions you are asking yourself. In today's data-focused environment, companies offering technological services of all sorts are faced with the types of technology E&O exposures alluded to in the scenario above.

The "Technology Errors & Omissions Market Survey" edition of The Betterley Report compares and contrasts the options available in the insurance marketplace to address scenarios like this and sheds light on the specific knowledge that can help any risk management and insurance professional better address technology E&O exposures.

Following a general overview of the state of the technology E&O insurance market, the report dives into the trademark feature offered in each edition of The Betterley Report: Incomparably detailed charts comparing the leading technology E&O insurers. These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of the following.

17 types of insurer comparison charts available in full report:

These comparison charts allow readers to see how each of the insurers stacks up with the others in terms of:

  • Contact and Product Information
  • Target Markets
  • Limits and Sublimits
  • Deductibles, Distribution Channel, and Commissions
  • Privacy Breach of Their Own Data
  • Privacy Breach of Client Data
  • Media Liability
  • Policy Type and Definition of Insured
  • Definition of Products and Services
  • Definition of Damages
  • Other Policy Definitions
  • Definition of Defense Expenses
  • Claims Reporting, ERP, Selection of Counsel, Consent To Settle
  • Prior Acts
  • Coverage Territory
  • Exclusions
  • Risk Management Services and Additional Cost

Sample Market Information from the Full Report

Below is a small sample of the information that is available for each of the insurers via the 17 different types of charts included in the full report.

Target Markets
Carrier Target Markets/Size of Insured Target Markets Prohibited Insureds Does Company Write Startups?
RLI Focus on firms with less than $50 million in revenue Monoline Tech Professional Liability or Tech Professional Liability as part of Package. Information Technology including software developers, system integrators, IT consultants, IT staffing, ISP/ASP, website design and data processors. Adult content and online gambling Yes
Coverage Extensions and (sub) Limits Available for Tech E&O Insureds—
Privacy Breach of Their Own Data
Carrier Liability Response Cost Fines/Penalties
Hiscox Up to $10 million available for Cyber "Loss." Contractual liability and Contractual indemnity coverage, including for Payment Card Industry (PCI) fines, card reissuance costs, and fraudulent charges are included. Up to $10 million available in breach costs under Cyber “Loss”, including legal costs, computer forensic costs, notification costs, call center costs, identity protection services, crisis management and public relations costs. Up to $10 million available under Cyber "Loss," which includes claims expenses and penalties because of a regulatory proceeding.
Definition of Products and Services
Carrier Products and/or Services Listed on Declarations Page Products and/or Services Defined in Policy Available Endorsements
Arch No "Technology Services" means information technology services performed by any Insured for others for a fee, including but not limited to constructing or maintaining a website, the integration of electronic information and business processes within a website, computer consulting, systems analysis, installation, programming, data processing, system integration, software development and design, disaster recovery, record retrieval, management and repair or maintenance of computer products, networks or systems and education and training services related to the above. Technology Services shall also include the performance of the Insured’s Technology Products or the failure of the Insured’s Technology Products to perform the function or serve the purpose intended. Policy may be endorsed based upon specific needs and subject to underwriting.

Your Objective Source: A Renowned Industry Expert

rick_betterley_186x175Richard S. Betterley, LIA, is the president of Betterley Risk Consultants (BRC), an independent insurance and alternative risk management consulting firm. BRC, founded in 1932, provides independent advice and counsel on insurable risk, coverage, alternatives to traditional insurance, and related services to corporations, educational institutions, and other organizations throughout the United States. It does not sell insurance or related services.

Mr. Betterley is a frequent speaker, author, and expert witness on specialty insurance products and related services. He is a member of the Professional Liability Underwriting Society. Mr. Betterley began his role with BRC in 1975.

Mr. Betterley created The Betterley Report in 1994 to be the objective source of information about specialty insurance products. Now published six times annually, The Betterley Report is known for its in-depth coverage of management liability, cyber risk, technology, intellectual property, and media insurance products.

More recently, Mr. Betterley created The Betterley Report Blog on Specialty Insurance Products, which offers readers updates on and insight into insurance products such as those covered in The Betterley Report. It provides him with a platform to more frequently and informally comment on product updates and newly announced products, as well as trends in the specialty insurance industry.

Next Issue: April 2018

Intellectual Property and Media Liability Market Survey

The Betterley Report is distributed by International Risk Management Institute, Inc. (IRMI) and may be accessed by subscribers on IRMI Online. To purchase a subscription, call IRMI Client Services at (800) 827–4242 or learn more on

Betterley Risk Consultants is an independent insurance and alternative risk management consulting firm. Founded in 1932, it provides independent advice and counsel to corporations, educational institutions, and other organizations throughout the United States. It does not sell insurance nor provide insurance-related services.

Betterley Risk Consultants, Inc.
235 Forest Lake Rd. • Friendship, Maine 04547 
Phone (774) 262–3460
email: [email protected]

The editor has attempted to ensure that the information in each issue is accurate at the time it was obtained. Opinions on insurance, financial, legal, and regulatory matters are those of the editor and others; professional counsel should be consulted before any action or decision based on this matter is taken. Note: all product names referred to herein are the properties of their respective owners.

The Betterley Report is published six times yearly by Betterley Risk Consultants, Inc. This material is copyrighted, with all rights reserved. ISSN 1089–0513

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