Technology Errors & Omissions


The Betterley Report: Technology Errors & Omissions Market Survey—2022

2022 Report Highlights


insurers analyzed


pages of insurer comparison 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.
  • 101 pages with 19 different kinds of charts comparing 14 of the most prominent insurers writing technology errors and omissions (E&O) insurance
  • Estimates on global market size and current rate trends
  • The seven tech E&O business classes that are accounting for the most direct written premium
  • Predictions from ISO Marketstance as to how future tech E&O premium growth will compare with other excess and surplus (E&S) lines
  • 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
  • How ransomware is stressing this line of coverage

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.

19 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
  • Business Interruption and System Failure
  • Theft (First-Party Coverage)
  • Policy Type, Who Is Insured, Subcontractors, Definition of Claim
  • 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 19 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?
Tokio Marine HCC PLG Under $100 million revenue Including but not limited to Tech Service Providers: Technology and Communications Systems Consulting, Design, Implementation, Support; Data Storage; Network Systems Management; Website Design; Project Management and Outsourcing; Hardware Resale and Installation; Software Development, Maintenance; ASP Services, Web Hosting Cryptocurrency exchanges, payment processors, gambling, music licensing  

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" with the purchase of the Cyber Liability Coverage Part. Contractual liability and Contractual indemnity coverage, including for Payment Card Industry (PCI) fines, card reissuance costs, and fraudulent charges are included. Breach Response Expenses coverage includes reasonable and necessary costs that are extraordinary and beyond the named insured’s normal expenditures. Subject to prior written consent and incurred and paid by the Named Insured within 12 months of the insured’s discovery of the Security Breach for the following: (1) insured’s public relations activities that are solely intended to mitigate a material impact to the named insured arising out of a Security Breach which has become substantially publicized through the news media; (2) costs, including forensic and investigative expenses, billed to the named insured by others the insured engages to determine the origin, extent and duration of a Security Breach. (3) costs, including legal fees, for the insured to notify Persons of a breach of the privacy of their personally identifiable information that is in the insured’s care, custody or control or the care of Trusted Party; (4) the Named Insured’s costs to provide up to 2 years of credit monitoring services, including fraud alerts, to affected persons because of a Security Breach; (5) Named Insured’s costs for identity restoration and credit repair services for identity or credit injury to a Person caused by a Security Breach; (6) Named Insured’s costs for a call center to manage Security Breach inquires; and (7) the Named Insured’s costs for voluntary payment of restitution to a Person  who lost money due to Security Breach when payment made to prevent a Claim from being made.

Cyber Extortion Expenses and Content Restoration Expenses coverage also built into base policy form.

Full First-Party limit and policy aggregate limit applies.
Definition of damages includes carve-back to cover privacy regulatory-imposed civil fines or penalties; Full Third-Party Limit and Policy Aggregate Limit Applies.

Coverage for PCI-DSS/PA-DSS fines built into policy form; First-Party Limit and Policy Aggregate Limit Applies.
Definition of Products and Services
Carrier Products and/or Services Listed on Declarations Page Products and/or Services Defined in Policy Available Endorsements
CFC Underwriting A bespoke definition of activities is included within the declarations page. "Technology activities" means the supply by you or on your behalf of technology products or services, including but not limited to software development, software installation and maintenance, hardware design, hardware installation and maintenance, data processing, internet services, data and application hosting, computer systems analysis, consulting, training, programming, systems integration, IT support and network management, and as more fully described in the Declarations page.

However, in respect of INSURING CLAUSE 1 (SECTION D only), technology activities does not include products.
A wide range of standard endorsements are available on top of individually tailored endorsements in order to provide maximum flexibility.

Your Objective Source: A Renowned Industry Expert


Richard 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 matters important to the commercial property and casualty insurance industry and its customers, alternatives to traditional insurance, and related services 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 and joined the firm 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.

Next Issue: April 2021

Intellectual Property and Media Liability Market Survey

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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.

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