$10M Professional Liability (E&O) Insurance for Technology and Media Firms

For technology and media firms whose client requires $10M: it is often built as a primary policy plus excess layers (extra policies on top), though some insurers write it on one policy for larger firms.

What does a $10M requirement mean for technology and media firms?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work cost a client money. Tech firms usually buy Technology E&O, often combined with Cyber (cover for data breaches and hacking). A $10M clause may read like this:

• Per claim and aggregate: the most paid for one claim, and for all claims in the year. See how limits work.
• Three coverages: Technology E&O for errors in your work, Cyber for breaches, and media liability for copyright, trademark or defamation (false statements that harm a reputation).
• Claims-made: the policy covers claims made and reported while it is active, for work after its retroactive date (the earliest work date it covers). A tail (extended reporting period) lets you report claims after the policy ends, but only for work done before it ended. In a tower, each layer needs its own tail.
• Primary plus excess: the last sentence lets you stack policies. If your clause is silent, confirm with the client that primary plus follow-form excess meets it.

Who asks technology and media firms for $10M?

Many clients in this group ask for $1M or $2M, and some ask for $5M. $5M may be one policy or a primary plus one excess layer. $10M usually needs more or larger layers than $5M. It appears when your work is close to the client's money, data or brand:

• Global enterprises with one contract template for every vendor.
• Banks, insurers and payment processors buying code that moves money.
• Health systems sharing large volumes of patient data.
• Managed service providers that run networks or security for large clients.
• SaaS platforms where an outage could stop a large client's business.
• Major brands and publishers commissioning national campaigns or licensing content.

How is $10M built?

A primary policy pays first. Each excess layer pays only after the layers below are used up. "$5M xs $5M" means $5M above the first $5M.

Each excess layer should follow form, meaning it uses the primary policy's terms, retroactive date and policy period. Many Professional Liability policies pay defense costs inside the limit, so legal fees reduce what is left to pay claims. Check that each excess layer treats defense the same way.

What will underwriters ask for?

Underwriters are the insurer staff who decide whether to offer coverage and at what terms. The primary layer asks for the list below. Excess insurers usually rely on that file.

• An application, revenue by service, and your largest clients.
• The contract requiring $10M and your standard client agreement.
• Security controls such as multifactor authentication, backups and an incident response plan.
• For content work, how you clear rights and licenses.
• Loss runs (a report listing past claims), usually for three to five years, plus known incidents and your current policy.

What affects the cost?

• Type of work and access. Payments, health data, managed IT and admin rights to client systems usually cost more than design or marketing.
• Tower structure. The primary layer usually costs the most per $1M. Higher excess layers usually cost less.
• Claims history and controls. Past claims or weak security can shrink the offer.
• Retention and shared limits. Retention is what you pay per claim first, like a deductible. Separate limits for Technology E&O and Cyber may cost more than one limit that the two share.

Frequently asked questions

Can a small development shop or agency get $10M Professional Liability?

It may be possible, but it is not routine. Availability depends on revenue, type of work, data exposure and claims history. Morrow can help you find it.

I already carry $2M or $5M. How do I get to $10M?

You usually reach $10M by requesting new quotes through Morrow, for a new primary plus excess layers, or for excess layers over your primary. Morrow can ask insurers to keep your retroactive date, where the market allows. Report known incidents to your current carrier before you switch.

Does my umbrella or additional insured status help meet a $10M requirement?

Usually not. A commercial umbrella almost never covers Professional Liability (read more). Additional insured status (naming the client on your policy) is usually not available on Professional Liability. A few Technology E&O or Cyber policies may offer something similar in limited cases, but it varies by policy and by layer, so do not assume it. If your contract asks for it, send Morrow the clause so it can be reviewed when quotes are requested.

How long does it take to get a $10M tower?

It varies, and a tower can take longer than a single policy. Share your contract and policy early so Morrow can request quotes sooner.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.