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Tech E&O for US clients is professional indemnity and cyber cover written to respond to claims brought in US courts, under US law, by US customers. Selling into the US without checking territory and jurisdiction is a common gap.
Part of: IT and technology business insurance
In short
UK IT companies with US clients need tech PI and cyber policies whose territorial limits and jurisdiction include the USA. Many UK wordings exclude the USA and Canada or cover only the UK entity. US procurement teams often ask for E&O, ACORD certificates, additional insured status, waivers of subrogation and primary wording, each of which needs insurer agreement. US exposure usually affects terms because of litigation costs and higher awards. A US subsidiary or US staff may need local policies and workers' compensation.
If a UK IT company sells to US clients, its tech PI and cyber policies need to be written to respond to claims brought in the US, under US law, by US clients. Many UK policies are written on a worldwide basis that excludes the USA and Canada, or include them only for work done by the UK entity. Selling into the US without checking this is a common gap in mid-sized tech programmes. The jurisdiction point is explained in more depth in professional indemnity and US jurisdiction.
US clients will also use different language. They ask for errors and omissions (E&O) insurance rather than PI, and they often send insurance schedules with certificate, additional insured and waiver requirements. The terminology is compared in PI vs E&O.
Two separate clauses decide whether a US claim is covered. Territorial limits describe where the work or the insured activity can take place. Jurisdiction describes where a claim can be brought or a judgment obtained. Both need to fit what you actually do.
| Common wording | What it usually means | Fit for US clients? |
|---|---|---|
| Worldwide excluding USA and Canada | No cover for claims brought in US or Canadian courts, or under their law | Usually not, if you have US clients |
| Worldwide including USA and Canada for UK domiciled business | US claims covered for work by the UK entity, often with conditions | Often suitable for UK firms with US clients but no US entity |
| Worldwide | Claims anywhere, subject to the policy terms and any US subsidiary conditions | Needed where the group has US operations |
| Specific territories named | Only the named courts and laws | Check the list includes the states where clients are based |
Check also whether a claim under a UK law contract, but enforced against you in the US, is treated differently. See worldwide jurisdiction PI cover explained. The same question arises for liability policies; see public liability and US jurisdiction and professional liability vs general liability, since US contracts often ask for both.
US procurement teams commonly ask for four things. First, a certificate of insurance, often on an ACORD 25 form; see ACORD 25 certificates for US clients. A certificate evidences cover but does not change the policy. Second, that the client be named as an additional insured. This is common on general liability, but on tech E&O it is often impractical, because the client would be insured against claims it brings against you. See client wants to be added as additional insured.
Third, a waiver of subrogation, which stops your insurer pursuing the client after paying a claim. Fourth, wording that your cover is primary and non-contributory. Each needs insurer agreement, and some are available only on certain policies. Send the full insurance schedule from the contract to your broker before signing, not after.
On the cover itself, US clients commonly expect tech E&O to include breach of contract claims arising from your services, cyber and privacy liability, and media liability. A UK tech PI wording may already do this; see what technology PI and tech E&O cover.
Insurers commonly treat US exposure as higher risk, which can affect premium, excess, limits available and wording. The reasons usually given are litigation costs, pre-trial discovery, jury trials in some cases, and the possibility of punitive or multiple damages. See US discovery and defence costs and punitive damages in US claims.
UK law limits the reach of some US awards here. Under the Protection of Trading Interests Act 1980, section 5, an overseas judgment for multiple damages, meaning an amount produced by doubling, trebling or otherwise multiplying a sum assessed as compensation, cannot be registered or otherwise enforced in UK courts. That does not stop a claim being defended in the US at significant cost, or enforced against assets held there, so it is not a reason to skip US cover.
Defence costs matter more for US claims. Check whether they sit inside or outside the limit; see defence costs inside vs outside the limit. Where costs erode the limit, US work may justify a higher tower; see excess layers for tech PI and cyber.
Once you set up a US entity, hire US staff or hold US contracts in a US company, a UK policy may not be enough on its own. US insurance is regulated state by state, and some clients ask for cover from an insurer admitted in their state. Where admitted cover is not available, US placements may use the surplus lines market; see surplus lines and non-admitted insurance.
Groups often use a UK master policy with local US policies issued beneath it, or a separate US programme. Employing people in the US also brings state workers' compensation requirements, which UK employers' liability does not replace; see US workers' compensation.
Before your next US deal, give your broker the contract, the governing law and jurisdiction clauses, US revenue by state, and any entity or staff in the US.
For the wider programme, see insurance for mid-sized IT companies and IT and technology business insurance.
Apex arranges tech PI, cyber and excess programmes for IT companies; a broker reads every enquiry.
Only if the policy's territorial limits and jurisdiction clause include the USA. Many UK policies exclude the USA and Canada, or cover US claims only for work done by the UK entity. Check the wording before signing a US contract and tell your broker about the client, the governing law and the expected revenue.
Broadly, yes. Errors and omissions is the US term for cover against claims that your services or advice caused a client loss. Tech E&O often bundles professional liability with cyber, privacy and media liability. UK tech PI can do the same, subject to the wording. US clients often accept a UK policy if limits, territory and jurisdiction fit, subject to the contract terms.
It is commonly requested but often impractical on E&O, because the client would be insured against claims it brings against you. Many insurers decline or offer limited wording. Additional insured status is more usual on general liability. Ask your broker before agreeing the clause.
Insurers commonly see US claims as more expensive to defend and settle, because of litigation costs, discovery and the possibility of higher awards. That can affect premium, excess, limits and wording. Declaring US revenue accurately protects the cover, because the duty of fair presentation applies at every renewal.
Often, yes. A UK policy may not cover a US company unless it is named, and some US clients want cover from an insurer admitted in their state. US employees also need workers' compensation, which UK employers' liability does not replace. Groups commonly use a UK master policy with local US policies.
Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.
Book a programme review Get a quoteApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
