| ý |   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
|--------|--------|-------------------------------------------------------------------------------|
|   |   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |   |                                                                          |
|   |   | For      the quarterly period ended September 30, 2009                        |
|   |   |                                                                          |
|   |   | OR                                                                            |
|   |   |                                                                          |
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                 |
|   |   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |   |                                                                          |
|   |   | For      the transition period from ________________ to      ________________ |

| Delaware                                      |   | 13-2698053               |
|-----------------------------------------------|--------|--------------------------|
| (State      or other jurisdiction of          |   | (I.R.S.      Employer    |
| incorporation      or organization)           |   | Identification      No.) |
|                                          |   |                     |
| 55      Lane Road, Fairfield, New Jersey      |   | 07004                    |
| (Address      of principal executive offices) |   | (Zip      Code)          |

| Large      accelerated filer [  ]                                                  | Accelerated      filer [   ] |
|----------------------------------------------------------------------------------------------|---------------------------------------------|
| Non-accelerated      filer [  ] (Do not check if a smaller reporting      company) | Smaller      reporting company [X]          |

| Class                                       |   | Outstanding      at November 9, 2009 |
|---------------------------------------------|--------|--------------------------------------|
| Common      Stock, $.01 par value per share |   | 24,622,786      shares               |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| INDEX      TO FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30,      2009     |
|-----------------------------------------------------------------------------------------------|

| PART I: | FINANCIAL      INFORMATION |   |  |
|---------|----------------------------|--------|--|

| Item 1. | Financial      Statements |   |  |
|---------|---------------------------|--------|--|

|   | Consolidated      Balance Sheets as of September 30, 2009 (Unaudited) and      December 31, 2008 |   | 3 |
|--------|--------------------------------------------------------------------------------------------------|--------|---|

|   | Consolidated      Statements of Operations for the three and nine months      ended September 30, 2009 and 2008      (Unaudited)  |   | 5 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|---|

|   | Consolidated      Statements of Cash Flows for the nine months      ended September 30, 2009 and 2008      (Unaudited) |   | 6 |
|--------|------------------------------------------------------------------------------------------------------------------------|--------|---|

|   |   |   |  |
|--------|--------|--------|--|

|   | Notes      to Consolidated Financial Statements      (Unaudited)  |   | 7 |
|--------|------------------------------------------------------------------------|--------|---|

| Item 2. | Management’s      Discussion and Analysis of Financial Condition      and Results of Operations |   | 14 |
|---------|-------------------------------------------------------------------------------------------------------|--------|----|

|   |   |   |   |
|--------|--------|--------|--------|

| Item 3. | Quantitative      and Qualitative Disclosures About      Market Risk |   | 21 |
|---------|----------------------------------------------------------------------|--------|----|

|  |   |   |                                                          |
|--|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 4. | Controls      and Procedures |   | 21 |
|---------|------------------------------|--------|----|

| PART II: | OTHER      INFORMATION |   |   |
|----------|------------------------|--------|--------|

| Item 1A. | Risk      Factors |   | 22 |
|----------|-------------------|--------|----|

| Item 6. | Exhibits |   | 22 |
|---------|----------|--------|----|

| SIGNATURES |   |   | 23 |
|------------|--------|--------|----|

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  CONSOLIDATED BALANCE      SHEETS |
|----------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | September      30,2009 |       |   | December      31,2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (Unaudited)            |       |   |                  |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   |       |   |                  |   |
| Current      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |       |   |                  |   |
| Cash      and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                      | 3,739,048  |   |                  | $      | 4,686,470 |   |
| Accounts      Receivable (Less Allowance for Doubtful Accounts of      $25,000)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   | 1,985,127  |   |                  |   | 2,055,815 |   |
| Prepaid      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   | 666,120    |   |                  |   | 334,804 |   |
| Deferred      Tax Asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   | 840,000    |   |                  |   | 840,000 |   |
| Total      Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   | 7,230,295  |   |                  |   | 7,917,089 |   |
| Property      and Equipment – At Cost:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                   |       |   |                  |   |   |   |
| Furniture,      Fixtures and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   | 623,547    |   |                  |   | 623,547 |   |
| Less:  Accumulated      Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 355,659    |   |                  |   | 300,164 |   |
| Property      and Equipment – Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                   | 267,888    |   |                  |   | 323,383 |   |
|          Capitalized Software (Less Accumulated Amortization of $11,762,724      and $11,049,157, respectively)                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 2,063,482  |   |                  |   | 1,848,111 |   |
| Deferred      Tax      Asset                                                                                    |   |                   | 840,000    |   |                  |   | 840,000 |   |
| Other      Assets                                                                                               |   |                   | 110,920    |   |                  |   | 110,151 |   |
| Total      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                      | 10,512,585 |   |                  | $      | 11,038,734 |   |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  CONSOLIDATED BALANCE      SHEETS |
|----------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | September      30,2009 |        |   | December      31,2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (Unaudited)            |        |   |                  |   |
| Liabilities and Stockholders’      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                   |        |   |                  |   |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                   |        |   |                  |   |
|    Accounts      Payable                                                                                                            |   | $                      | 154,760     |   |                  | $      | 227,007 |   |
|    Accrued      Expenses      Payable                                                                                               |   |                   | 427,400     |   |                  |   | 1,061,065 |   |
|    Deferred      Charges                                                                                                            |   |                   | 22,503      |   |                  |   | 22,503 |   |
|    Unearned      Revenue                                                                                                            |   |                   | 1,789,218   |   |                  |   | 1,800,485 |   |
|    Total      Current      Liabilities                                                                                              |   |                   | 2,393,881   |   |                  |   | 3,111,060 |   |
| Long-Term      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                   |        |   |                  |   |   |   |
|    Deferred      Charges                                                                                                            |   |                   | 106,966     |   |                  |   | 123,844 |   |
|    Total      Liabilities                                                                                                           |   |                   | 2,500,847   |   |                  |   | 3,234,904 |   |
| Commitments      and      Contingencies                                                                                                            |   |                   | —     |   |                  |   | — |   |
| Stockholders’      Equity:   Common      Stock, $.01 Par Value, Authorized 75,000,000 Shares; 24,796,656 and      24,690,227 Shares Issued and 24,594,786 and 24,488,357 Shares Outstanding,      Respectively                                                                                                                                                                                                                                                                                                                                               |   |                   | 247,967     |   |                  |   | 246,902 |   |
| Paid-in      Capital                                                                                                                               |   |                   | 29,481,249  |   |                  |   | 29,185,646 |   |
| Accumulated      Deficit                                                                                                                           |   |                   | (21,552,584 | )      |                  |   | (21,463,824 | ) |
| Treasury      Stock – At Cost – 201,870      Shares                                                                                    |   |                   | (164,894    | )      |                  |   | (164,894 | ) |
| Total      Stockholders’      Equity                                                                                                         |   |                   | 8,011,738   |   |                  |   | 7,803,830 |   |
| Total      Liabilities and Stockholders’      Equity                                                                                         |   | $                      | 10,512,585  |   |                  | $      | 11,038,734 |   |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  CONSOLIDATED STATEMENTS OF      OPERATIONS (UNAUDITED) |
|--------------------------------------------------------------|

|                                                                                                                |   | Three      months ended September 30, |       |   | Nine      months ended September 30, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|-------------------------------------------|--------|
|                                                                                                                |   | 2009                                  |       |   | 2008                                      |   |   | 2009 |   |   | 2008 |   |
| Revenues:                                                                                                           |   |                                  |       |   |                                      |   |   |   |   |   |   |   |
| Licenses                                                                                                            |   | $                                     | 177,887    |   |                                      | $      | 2,551,197 |   |   | $ | 484,280 |   |   | $ | 3,520,596 |   |
| Maintenance                                                                                                         |   |                                  | 1,242,784  |   |                                      |   | 1,088,629 |   |   |   | 3,740,263 |   |   |   | 3,036,143 |   |
| Professional      Services                                                                                          |   |                                  | 599,341    |   |                                      |   | 634,919 |   |   |   | 2,585,908 |   |   |   | 2,219,236 |   |
| Applications      Service Provider (“ASP”) Services                                                     |   |                                  | 530,616    |   |                                      |   | 515,764 |   |   |   | 1,534,304 |   |   |   | 1,521,358 |   |
| Total      Revenues                                                                                                 |   |                                  | 2,550,628  |   |                                      |   | 4,790,509 |   |   |   | 8,344,755 |   |   |   | 10,297,333 |   |
| Cost      of Revenues:                                                                                              |   |                                  |       |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Licenses                                                                                                            |   |                                  | 229,192    |   |                                      |   | 810,447 |   |   |   | 721,512 |   |   |   | 1,347,328 |   |
| Maintenance                                                                                                         |   |                                  | 625,058    |   |                                      |   | 694,208 |   |   |   | 1,821,613 |   |   |   | 1,763,290 |   |
| Professional      Services                                                                                          |   |                                  | 307,960    |   |                                      |   | 319,607 |   |   |   | 1,246,482 |   |   |   | 960,930 |   |
| ASP      Services                                                                                                   |   |                                  | 391,968    |   |                                      |   | 391,604 |   |   |   | 1,164,601 |   |   |   | 950,377 |   |
| Total      Cost of Revenues                                                                                         |   |                                  | 1,554,178  |   |                                      |   | 2,215,866 |   |   |   | 4,954,208 |   |   |   | 5,021,925 |   |
| Direct      Margin                                                                                                  |   |                                  | 996,450    |   |                                      |   | 2,574,643 |   |   |   | 3,390,547 |   |   |   | 5,275,408 |   |
| Operating      Expenses:                                                                                            |   |                                  |       |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Sales      and Marketing                                                                                            |   |                                  | 252,018    |   |                                      |   | 130,238 |   |   |   | 688,541 |   |   |   | 572,963 |   |
| General      and Administrative                                                                                     |   |                                  | 449,909    |   |                                      |   | 399,482 |   |   |   | 1,371,435 |   |   |   | 1,415,756 |   |
| Research      and Development                                                                                       |   |                                  | 231,449    |   |                                      |   | 346,838 |   |   |   | 669,863 |   |   |   | 729,049 |   |
| Total      Operating Expenses                                                                                       |   |                                  | 933,376    |   |                                      |   | 876,558 |   |   |   | 2,729,839 |   |   |   | 2,717,768 |   |
| Operating      Income                                                                                               |   |                                  | 63,074     |   |                                      |   | 1,698,085 |   |   |   | 660,708 |   |   |   | 2,557,640 |   |
| Other      Income (Expense):                                                                                        |   |                                  |       |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                                               |   |                                  | —    |   |                                      |   | (406 | ) |   |   | — |   |   |   | (9,469 | ) |
| Interest      Expense – Related Party                                                                         |   |                                  | —    |   |                                      |   | — |   |   |   | — |   |   |   | (2,616 | ) |
| Interest      Income                                                                                                |   |                                  | 216        |   |                                      |   | 12,067 |   |   |   | 6,084 |   |   |   | 15,111 |   |
| Other      Income                                                                                                   |   |                                  | 9,018      |   |                                      |   | 6,165 |   |   |   | 42,318 |   |   |   | 32,773 |   |
| Total      Other Income (Expense)                                                                                   |   |                                  | 9,234      |   |                                      |   | 17,826 |   |   |   | 48,402 |   |   |   | 35,799 |   |
| Income      Before Income Taxes                                                                                     |   |                                  | 72,308     |   |                                      |   | 1,715,911 |   |   |   | 709,110 |   |   |   | 2,593,439 |   |
| Income      Taxes                                                                                                   |   |                                  | 51,461     |   |                                      |   | 22,032 |   |   |   | 59,486 |   |   |   | 27,367 |   |
| Net      Income                                                                                                     |   | $                                     | 20,847     |   |                                      | $      | 1,693,879 |   |   | $ | 649,624 |   |   | $ | 2,566,072 |   |
| Basic      Earnings Per Common Share                                                                                |   | $                                     | 0.00       |   |                                      | $      | 0.07 |   |   | $ | 0.03 |   |   | $ | 0.11 |   |
| Diluted      Earnings Per Common Share                                                                              |   | $                                     | 0.00       |   |                                      | $      | 0.07 |   |   | $ | 0.03 |   |   | $ | 0.11 |   |
| Weighted Average Number of      CommonShares      Outstanding for Basic Earnings Per Common Share                   |   |                                  | 24,588,000 |   |                                      |   | 24,431,000 |   |   |   | 24,579,000 |   |   |   | 23,684,000 |   |
| Weighted Average Number of      CommonShares      Outstanding for Diluted Earnings  Per Common      Share |   |                                  | 25,163,000 |   |                                      |   | 25,119,000 |   |   |   | 25,005,000 |   |   |   | 24,342,000 |   |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  CONSOLIDATED STATEMENTS OF CASH      FLOWS (UNAUDITED) |
|--------------------------------------------------------------|

|                                                                           |   | Nine      months ended September 30, |      |
|--------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                           |   | 2009                                 |      |   | 2008 |   |
| Cash      Flows Provided From Operating Activities:                            |   |                                 |      |   |   |   |
| Net      Income                                                                |   | $                                    | 649,624   |   |   | $ | 2,566,072 |   |
| Adjustments      to Reconcile Net Income to                                    |   |                                 |      |   |   |   |   |   |
| Net      Cash Provided From Operating Activities:                              |   |                                 |      |   |   |   |   |   |
| Depreciation                                                                   |   |                                 | 55,495    |   |   |   | 48,314 |   |
| Amortization      of Capitalized Software                                      |   |                                 | 713,567   |   |   |   | 682,349 |   |
| Amortization      of Deferred Financing Costs                                  |   |                                 | —   |   |   |   | 26,273 |   |
| Amortization      of Stock-based Compensation                                  |   |                                 | 276,667   |   |   |   | 581,209 |   |
| Changes      in Assets and Liabilities:                                        |   |                                 |      |   |   |   |   |   |
| (Increase)      Decrease in:                                                   |   |                                 |      |   |   |   |   |   |
| Accounts      Receivable                                                       |   |                                 | 70,688    |   |   |   | 1,557,691 |   |
| Prepaid      Expenses                                                          |   |                                 | (331,316  | ) |   |   | (60,479 | ) |
| Other      Assets                                                              |   |                                 | (769      | ) |   |   | — |   |
| Increase      (Decrease) in:                                                   |   |                                 |      |   |   |   |   |   |
| Accounts      Payable                                                          |   |                                 | (72,247   | ) |   |   | (361,067 | ) |
| Accrued      Liabilities                                                       |   |                                 | (633,665  | ) |   |   | 211,380 |   |
| Deferred      Charges                                                          |   |                                 | (16,878   | ) |   |   | (16,877 | ) |
| Unearned      Revenue                                                          |   |                                 | (11,267   | ) |   |   | 110,370 |   |
| Net      Cash Provided From Operating Activities                               |   |                                 | 699,899   |   |   |   | 5,345,235 |   |
|                                                                           |   |                                 |      |   |   |   |   |   |
| Cash      Flows Used For Investing Activities:                                 |   |                                 |      |   |   |   |   |   |
| Capital      Expenditures                                                      |   |                                 | —   |   |   |   | (224,542 | ) |
| Capitalized      Software Expenditures                                         |   |                                 | (928,938  | ) |   |   | (908,511 | ) |
| Net      Cash Used For Investing Activities                                    |   |                                 | (928,938  | ) |   |   | (1,133,053 | ) |
|                                                                           |   |                                 |      |   |   |   |   |   |
| Cash      Flows Used For Financing Activities:                                 |   |                                 |      |   |   |   |   |   |
| Dividends      Paid to Common Stockholders                                     |   |                                 | (738,383  | ) |   |   | — |   |
| Proceeds      From Exercise of Stock Options, Restricted Stock and    Warrants |   |                                 | 20,000    |   |   |   | 26,800 |   |
| Purchase      of Treasury Stock                                                |   |                                 | —   |   |   |   | (164,894 | ) |
| Net      Cash Used For Financing Activities                                    |   |                                 | (718,383  | ) |   |   | (138,094 | ) |
|                                                                           |   |                                 |      |   |   |   |   |   |
| Change      in Cash and Cash Equivalents                                       |   |                                 | (947,422  | ) |   |   | 4,074,088 |   |
| Cash      and Cash Equivalents – Beginning of Period                     |   |                                 | 4,686,470 |   |   |   | 10,914 |   |
| Cash      and Cash Equivalents – End of Period                           |   | $                                    | 3,739,048 |   |   | $ | 4,085,002 |   |
|                                                                           |   |                                 |      |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information                         |   |                                 |      |   |   |   |   |   |
| Cash      Paid During the Periods for:                                         |   |                                 |      |   |   |   |   |   |
| Interest                                                                       |   | $                                    | —   |   |   | $ | 9,469 |   |
| Interest – Related Party                                                 |   |                                 | —   |   |   |   | 2,616 |   |
| Income Taxes                                                                   |   |                                 | 59,486    |   |   |   | 27,367 |   |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | For      the three months endedSeptember      30, 2009 |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Income(Numerator)                                      |    |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                   |    |   |   |   |   |   |   |
|  Income      Available to Common Stockholders                                                                                                          |   | $                                                      | 20,847  |   |   |   | 24,587,721 |   |   | $ | 0.00 |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                   |    |   |   |   |   |   |   |   |   |   |
|   Exercise      of Options and Restricted Stock                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                   | — |   |   |   | 504,530 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                                  |   |                                                   | — |   |   |   | 70,339 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                   |    |   |   |   |   |   |   |   |   |   |
|   Income      Available to Common Stockholders Plus      Assumed      Conversions                                                                 |   | $                                                      | 20,847  |   |   |   | 25,162,590 |   |   | $ | 0.00 |   |

----

| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | For      the nine months endedSeptember 30,      2009 |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Income(Numerator)                                          |    |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                       |    |   |   |   |   |   |   |
|  Income      Available to Common Stockholders                                                                                                          |   | $                                                          | 649,624 |   |   |   | 24,579,103 |   |   | $ | 0.03 |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                       |    |   |   |   |   |   |   |   |   |   |
|   Exercise      of Options and Restricted Stock                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                       | — |   |   |   | 359,264 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                                  |   |                                                       | — |   |   |   | 66,346 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                       |    |   |   |   |   |   |   |   |   |   |
|   Income      Available to Common Stockholders Plus      Assumed      Conversions                                                                 |   | $                                                          | 649,624 |   |   |   | 25,004,713 |   |   | $ | 0.03 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | For      the three months endedSeptember      30, 2008 |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Income(Numerator)                                      |      |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                   |      |   |   |   |   |   |   |
|  Income      Available to Common Stockholders                                                                                                    |   | $                                                      | 1,693,879 |   |   |   | 24,430,888 |   |   | $ | 0.07 |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                   |      |   |   |   |   |   |   |   |   |   |
|   Exercise      of      Options                                                                                                             |   |                                                   | —   |   |   |   | 606,869 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                            |   |                                                   | —   |   |   |   | 81,709 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                   |      |   |   |   |   |   |   |   |   |   |
|  Income      Available to Common Stockholders Plus      Assumed      Conversions                                                                 |   | $                                                      | 1,693,879 |   |   |   | 25,119,466 |   |   | $ | 0.07 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | For      the nine months endedSeptember      30, 2008 |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Income(Numerator)                                     |      |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                  |      |   |   |   |   |   |   |
|  Income      Available to Common Stockholders                                                                                                          |   | $                                                     | 2,566,072 |   |   |   | 23,684,010 |   |   | $ | 0.11 |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                  |      |   |   |   |   |   |   |   |   |   |
|   Exercise      of      Options                                                                                                                   |   |                                                  | —   |   |   |   | 577,428 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                                  |   |                                                  | —   |   |   |   | 80,563 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                  |      |   |   |   |   |   |   |   |   |   |
|   Income      Available to Common Stockholders Plus      Assumed      Conversions                                                                 |   | $                                                     | 2,566,072 |   |   |   | 24,342,001 |   |   | $ | 0.11 |   |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

|                             |   | Shares |      |   | Exercise      PricePer      Share |   |                   | Weighted-Average      Remaining Contractual Life |   |           | Weighted-Average      Exercise Price |   |
|----------------------------------|--------|--------|-----------|--------|-----------------------------------|--------|------------------------|--------------------------------------------------|--------|----------------|--------------------------------------|--------|
| Balance,      December 31, 2008  |   |   | 1,497,463 |   |                              | $      | 0.36      – 1.40 |                                             |   | 3.4      years |                                 |   | $ | 0.92 |   |
| Granted                          |   |   | 350,000   |   |                              |   | 1.00      – 1.05 |                                             |   | 4.4      years |                                 |   |   | 1.01 |   |
| Exercised                        |   |   | —   |   |                              |   | —                |                                             |   |           | —                              |   |   |   | — |   |
| Canceled                         |   |   | —   |   |                              |   | —                |                                             |   |           | —                              |   |   |   | — |   |
| Expired                          |   |   | —   |   |                              |   | —                |                                             |   |           | —                              |   |   |   | — |   |
| Balance,      September 30, 2009 |   |   | 1,847,463 |   |                              | $      | 0.36      – 1.40 |                                             |   | 3.0      years |                                 |   | $ | 0.94 |   |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

|                             |   | Outstanding      and Exercisable Warrants |    |   | Exercise      PricePer      Warrant |   |   | Weighted-Average      Remaining Contractual Life |   |            | Weighted-Average      Exercise Price |   |
|----------------------------------|--------|-------------------------------------------|---------|--------|-------------------------------------|--------|--------|--------------------------------------------------|--------|-----------------|--------------------------------------|--------|
| Balance,      December 31, 2008  |   |                                      | 121,429 |   |                                | $      | 0.35   |                                             |   | 2.35      years |                                 |   | $ | 0.35 |   |
| Exercised                        |   |                                      | (21,429 | )      |                                |   | 0.35   |                                             |   |            | —                              |   |   |   | 0.35 |   |
| Balance,      September 30, 2009 |   |                                      | 100,000 |   |                                | $      | 0.35   |                                             |   | 1.61      years |                                 |   | $ | 0.35 |   |

|                                                                                                                                                                                                                                                                                                                                                                            |   | Shares |     |   | Weighted-Average      Grant Date Fair Value Per Share |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|-------------------------------------------------------|--------|
| Balance,      December 31, 2008                                                                                                                                                                                                                                                                                                                                                 |   |   | 382,500  |   |                                                  | $      | 1.24 |   |
| Vested                                                                                                                                                                                                                                                                                                                                                                          |   |   | (150,000 | )      |                                                  |   | 1.38 |   |
| Forfeited                                                                                                                                                                                                                                                                                                                                                                       |   |   | (17,500  | )      |                                                  |   | 1.40 |   |
| Balance,      September 30,      2009                                                        |   |   | 215,000  |   |                                                  | $      | 1.13 |   |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|  NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) |
|------------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| Item      2: | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations. |
|--------------|--------------------------------------------------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

|                        |   | Three      MonthsEnded      September 30, |   |   | Nine      MonthsEnded      September 30, |   |
|-----------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                        |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
| Revenues:                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| License                     |   |                                      | 7.0    | %      |                                     |   | 53.2 | % |   |   | 5.8 | % |   |   | 34.2 | % |
| Maintenance                 |   |                                      | 48.7   |   |                                     |   | 22.7 |   |   |   | 44.8 |   |   |   | 29.5 |   |
| Professional    Services    |   |                                      | 23.5   |   |                                     |   | 13.3 |   |   |   | 31.0 |   |   |   | 21.5 |   |
| ASP Services                |   |                                      | 20.8   |   |                                     |   | 10.8 |   |   |   | 18.4 |   |   |   | 14.8 |   |
| Total Revenues              |   |                                      | 100.0  |   |                                     |   | 100.0 |   |   |   | 100.0 |   |   |   | 100.0 |   |
|                        |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of Revenues:      |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| License                     |   |                                      | 8.9    |   |                                     |   | 16.8 |   |   |   | 8.6 |   |   |   | 13.2 |   |
| Maintenance                 |   |                                      | 24.5   |   |                                     |   | 14.5 |   |   |   | 21.8 |   |   |   | 17.1 |   |
| Professional    Services    |   |                                      | 12.1   |   |                                     |   | 6.7 |   |   |   | 14.9 |   |   |   | 9.3 |   |
| ASP Services                |   |                                      | 15.4   |   |                                     |   | 8.2 |   |   |   | 14.1 |   |   |   | 9.2 |   |
| Total Cost of      Revenues |   |                                      | 60.9   |   |                                     |   | 46.2 |   |   |   | 59.4 |   |   |   | 48.8 |   |
| Direct Margin               |   |                                      | 39.1   |   |                                     |   | 53.8 |   |   |   | 40.6 |   |   |   | 51.2 |   |
|                        |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses:    |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Sales and    Marketing      |   |                                      | 9.9    |   |                                     |   | 2.7 |   |   |   | 8.3 |   |   |   | 5.5 |   |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| General and      Administrative   |   |   | 17.6    |   |   |   | 8.4    |   |   |   | 16.5   |   |   |   | 13.7    |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Research and      Development     |   |   | 9.2     |   |   |   | 7.2    |   |   |   | 7.9    |   |   |   | 7.1     |   |
| Total Operating      Expenses     |   |   | 36.7    |   |   |   | 18.3   |   |   |   | 32.7   |   |   |   | 26.3    |   |
| Operating Income                  |   |   | 2.4     |   |   |   | 35.5   |   |   |   | 7.9    |   |   |   | 24.9    |   |
|                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Other      (Expense) Income:      |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Interest Expense                  |   |   | — |   |   |   | 0.3    |   |   |   | 0.1    |   |   |   | — |   |
| Other Income                      |   |   | 0.4     |   |   |   | 0.1    |   |   |   | 0.5    |   |   |   | 0.3     |   |
| Total Other (Expense)      Income |   |   | 0.4     |   |   |   | 0.4    |   |   |   | 0.6    |   |   |   | 0.3     |   |
| Income Before Income      Taxes   |   |   | 2.8     |   |   |   | 35.9   |   |   |   | 8.5    |   |   |   | 25.2    |   |
|                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Income      Taxes (Benefit)       |   |   | 2.0     |   |   |   | 0.5    |   |   |   | 0.7    |   |   |   | 0.3     |   |
|                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Net      Income                   |   |   | 0.8     | %      |   |   | 35.4   | %      |   |   | 7.8    | %      |   |   | 24.9    | %      |
|                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| ·   | Our      ability to generate cash is subject to general economic, financial,      competitive and other factors beyond our  control. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      need to invest resources in product development in order to continue to      enhance our current product, develop new products, attract and retain      customers and keep pace with competitive product introductions and      technological developments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      experience intense competition in our industry and continuing      technological changes. |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | Insurance      companies typically are slow in making decisions and have numerous      bureaucratic and institutional obstacles, which can make our efforts to      attain new customers difficult. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      compete with a number of larger companies who have greater resources than      those of ours.  We compete on the basis of insurance knowledge,      products, services, price, technological advances and system functionality      and performance. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      operations continue to depend upon the continuing business of our existing      customers and our ability to attract new  customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decline in software spending in the insurance industry could result in a      decrease in our revenue. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| ·   | Revenue      Recognition |
|--------------------|--------------------------|

| ·   | Valuation      of Capitalized Software |
|--------------------|----------------------------------------|

| ·   | Valuation      of Allowance for Doubtful AccountsReceivable |
|--------------------|-------------------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| Item      1A. | Risk      Factors. |
|---------------|--------------------|

| Item      6. | Exhibits. |
|--------------|-----------|

|  Exhibit |   |                                                                                                                                                                        |
|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| No.           |   | Description                                                                                                                                                                 |
|          |   |                                                                                                                                                                        |
| 31.1*         |   | Chief      Executive Officer Certification pursuant to Section 13a-15(e) of the      Securities Exchange Act.                                                          |
| 31.2*         |   | Chief      Financial Officer Certification pursuant to Section 13a-15(e) of the      Securities Exchange Act.                                                          |
| 32.1*         |   | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |
| 32.2*         |   | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

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| COVER-ALL      TECHNOLOGIES INC. AND SUBSIDIARY |
|-------------------------------------------------|

| SIGNATURES |
|------------|

|  Date:  November      13, 2009 |  By:         /s/ John      W. Roblin                                                       |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                          |                John W. Roblin, Chairman of the Board of Directors |
|                                          |                and Chief Executive Officer                        |

|  Date:  November      13, 2009 |   By:      /s/ Ann F.      Massey                                                  |
|-----------------------------------------------|----------------------------------------------------------------------------------------------|
|                                          |               Ann F. Massey, Chief Financial Officer |
|                                          |                                                                                         |