Definitely a factor. The way our business insurance company explained it to us:
1. True, our software product could not conceivably cause any actionable damages, and in any case we have a total disclaimer of any liability that all customers must agree to on purchase.
2. Similar disclaimers have been tested in U.S. courts and upheld.
3. BUT, that "tested in court" part means that an insurance company had to send lawyers to court, which means they incurred some expense on behalf of the client.
4. In one single case, a judge held that an insurance company should have advised their client to take out E&O insurance in addition to regular CGL, and therefore could potentially be partially liable for damages for failure to provide proper advice.
5. Therefore the insurance company feels obliged to require that any client selling anything in the U.S. must take out E&O insurance in addition to CGL, and the E&O insurance is going to cost much more than the CGL.
We told our insurer we did not want or need E&O, and they advised us that nobody would give us CGL (Commercial General Liability insurance) that we needed to do business without E&O, due to the recent court decision in the U.S.. We held out for a month until one insurer gave in. By the next year the insurance companies had calmed down about the court decision and decided that it wasn't such a big deal after all. Sometimes insurance companies seem to panic and follow the crowd a little too readily.