Technology errors and omissions insurance responds when a company's software or services fail to perform and a customer suffers financial loss. For a digital health company it is the coverage that answers when a platform miscalculates, misroutes, or goes down and a client says the failure cost them money.
It is distinct from cyber, which answers for data and security events. Technology errors and omissions answers for the performance of the product itself. This page covers what the policy responds to, where the line sits against cyber and clinical liability, and how customer contracts drive the requirement.
What Technology Errors And Omissions Covers
The policy responds to claims that the company was negligent in delivering its technology or services: an error in the software, a failure to deliver what was promised, a service outage, or professional services that fell short. It funds defense as well as settlement within the limit.
Some forms extend to certain contractual liability, which matters when a customer agreement contains service commitments. How far that extension goes varies considerably between insurers, and it is one of the more negotiable parts of the form.
Where It Sits Against Cyber And Clinical Liability
Digital health companies face a three-way boundary. Cyber answers for data and security events. Technology errors and omissions answers for product performance and the financial loss it causes. Medical professional liability answers for clinical care and the harm it causes.
A platform that supports clinical decisions can touch all three in a single incident, and claims tend to land in the seams between them. Reading the three forms together, and confirming where a realistic failure scenario would fall, is more useful than buying each in isolation.
How Customer Contracts Drive The Requirement
Health system, payor, and enterprise agreements routinely specify technology errors and omissions limits, sometimes combined with cyber under a single requirement. The first serious enterprise pilot is usually when the requirement appears.
The contract's indemnity and limitation of liability clauses interact with the policy directly. A limitation of liability that caps your exposure helps only if it survives, and an indemnity that exceeds your policy limit leaves the difference with the company.
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