The information and technology industry is intricate and evolving rapidly. As businesses increasingly rely on online systems for core operations, IT professionals face various liabilities from clients and third parties. These liabilities can lead to significant financial and reputational damage if problems occur.
IT Liability Insurance protects you and your business against legal liabilities arising from the failure of your IT products, services, or advice. This comprehensive policy combines professional indemnity, public liability, and product liability into one insurance solution.
Do I need IT Liability Insurance?
If you are a consultant or work in an organisation that develops, manufactures, sells, licenses or integrates any form of information technology or related services you should consider IT Liability Insurance. This includes:
- Software Developers
- Electronic and Telco equipment manufacturers
- Telecommunication providers
- Internet service providers
- IT Consultants
- Web Hosting service providers
- Hardware/Software resellers
- IT Maintenance and Repair Technicians
What does this Insurance cover?
- Protection if an IT product or service you provided fails
- Protection in the event that someone hacks into your IT systems or software and destroys or steals information
- Cover in the event that something goes wrong based on advice you’ve provided on an IT service or product
Should I consider an IT Liability policy over separate Indemnity and Liability policies?
Given the nature of IT, where you provide both a service and a product simultaneously, it can be unclear where a claim should be categorised. The uncertainty lies in whether it should be covered under a product or public liability policy (for third-party claims related to property damage or personal injury) or a professional indemnity policy (for third-party claims related to financial loss).
This ambiguity can lead to claims potentially falling between the cracks if they are covered by separate policies, particularly when these are held with different insurers. It is advisable to secure coverage under a single IT Liability Insurance policy, which encompasses all of the above areas.
General Advice Warning
The information provided on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice on this website is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making a decision based on this advice you should consider whether it is appropriate to your particular circumstances.
Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a disclosure document, including the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) relating to the product and consider the content before making any decision about whether to acquire the product.
Authorised by Clearlake Insurance Brokers ABN 16 651 113 861 AFSL 559829
How Clearlake Insurance can help
At Clearlake Insurance Brokers, our expert team understands the pressure businesses face to meet client expectations, and the risks IT professionals encounter daily. That’s why we take the time to assess your specific risk management needs and exposures, delivering an insurance solution tailored to best meet the needs of your business.
For more information or to arrange cover, please contact us on 02 9037 8970 or simply fill out the form below and one of our insurance brokers will get in touch shortly.
