Which insurance coverage is typically carried by pen test companies alongside liability?

• A. Property insurance
• B. Life insurance
• C. Cyber insurance only
• D. Liability and Errors and Omissions Insurance

Answer: (D)

The key idea is professional liability for the work you perform. Penetration testers provide a professional service, so they face claims that their advice, testing, or conclusions were negligent or incomplete. Errors and Omissions Insurance (E&O) specifically covers these kinds of claims—financial losses clients allege resulted from mistakes, omissions, or substandard performance in the professional services provided. General liability covers things like bodily injury or property damage, but not the quality or outcome of the professional work itself. So carrying liability protection together with Errors and Omissions Insurance addresses both the standard business risk and the risk tied to the accuracy and quality of the security testing. Cyber insurance is useful for data breaches and related incidents, but it doesn’t replace E&O for professional service claims.