The practical issue.
Technology E&O and cyber insurance can overlap, but they answer different questions. Technology E&O generally addresses claims arising from errors, omissions or failures in technology products or services. Cyber coverage generally addresses privacy, security, incident response and related first party and third party loss. The actual policy structure can combine or separate them.
Questions that change the answer.
- Is the main exposure service failure, data compromise, security failure or several of these?
- Does the agreement define technology services broadly enough?
- Are first party incident costs relevant?
- Are contractual liabilities or performance warranties broader than covered negligence?
- Are both coverages written on a claims made basis?
Common decision positions.
- Describe the exposure being addressed instead of relying on a label alone.
- Avoid counting the limit twice when both coverages share one aggregate.
- Check whether the contract asks for first party costs, third party liability or both.
- Confirm retroactive dates and continuity for claims made coverage.