Insurance for IT Firms, Software Companies, and MSPs in Connecticut: Tech E&O and Cyber Together

Short answer: Technology companies need technology errors and omissions (tech E&O) for claims that their software, services or advice caused a client financial loss, combined with cyber liability for breaches of their own systems and their liability when a breach spreads to clients. Managed service providers carry heightened exposure because a single compromise of their remote-management tools can reach every client. General liability, workers' compensation and EPLI round out the program.

Tech E&O

• Covers failure of your product or service to perform, implementation errors, missed deadlines and negligent advice.
• Written claims-made; protect the retroactive date when switching carriers.
• Check contractual liability: many client contracts require you to indemnify them broadly, and policies cover only liability you would have without the contract unless endorsed.
• Intellectual property infringement is limited or excluded on many forms; patent infringement is almost always excluded.

Cyber, first and third party

• First party: incident response, forensics, data restoration, extortion and your own business interruption.
• Third party: liability when a breach of your systems exposes client data or becomes the route into a client's network, plus regulatory defense.
• Funds transfer and social engineering coverage for your own accounts.

Buying tech E&O and cyber from the same insurer on a combined form avoids disputes about which policy responds when a security failure is also a service failure. See cyber liability for Connecticut businesses.

MSPs and MSSPs

Underwriters focus on how remote-monitoring and management tools are secured, privileged access, multi-factor authentication for every technician, and the incident response plan. Expect detailed questionnaires and pricing that reflects aggregation risk. Contracts with clients should limit liability where possible and set out security responsibilities clearly.

Defense supply chain

Connecticut IT firms supporting defense contractors may be in scope for the CMMC program, which entered contracts on 10 November 2025; see manufacturers and defense suppliers.

New England Insurance, an independent Connecticut agency in Bridgeport since 2012, places combined tech E&O and cyber for Connecticut technology firms. See cyber insurance or request a review.