What Insurance Covers Software Downtime?
Cyber business-interruption coverage may replace lost income after a covered security event; technology E&O may address customer claims over a service failure.
An outage can hurt your own revenue or lead a customer to claim that your service failed. FTC guidance lists lost income after business interruption among possible first-party cyber costs, while technology E&O may address covered customer liability arising from professional services.
Ask what causes qualify: a cyberattack, software bug, cloud-provider failure, planned maintenance, or customer configuration may trigger different terms. Compare waiting periods, required outage duration, and vendor-dependency wording.
Coverage Guides Related to Business Insurance
Sources for Business Insurance Answers
- Cyber Insurance. Federal Trade Commission; First-Party Coverage; Third-Party Coverage; What Should Your Cyber Insurance Policy Cover. Accessed 2026-09-25.
- FAQ: Professional liability insurance. Texas Department of Insurance; What’s professional liability coverage?; What types of damages does it cover?; claims-made and occurrence policies. Accessed 2026-09-25.