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IT Liability Insurance

IT Liability is designed for businesses providing IT services. Cover contains elements of Public & Products Liability as well as Professional Indemnity to address the main exposures that a business in this industry faces.

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Cover at a glance
  • Provides coverage for Professional Indemnity and Public & Products Liability for businesses in the IT field
  • Reduces the chance that a particular claim could ‘fall between the cracks’ if the above policies were placed separately

Policy Overview

IT Liability Insurance is specifically designed to meet the unique needs of businesses providing IT services, offering a blend of both Public & Products Liability and Professional Indemnity cover. The IT industry faces complex risks due to the interconnection of products and services, making this combined coverage essential. IT Liability Insurance ensures that businesses are protected against claims arising from professional advice, product failures, or third-party injuries, safeguarding both financial and operational stability.

This policy provides protection against a wide range of exposures, covering liabilities related to professional errors, omissions, or negligence that could result in financial loss for clients. It also includes Public & Products Liability, covering physical injury or property damage claims. By combining these two coverages, IT Liability Insurance eliminates potential gaps that could arise if these risks were insured separately, ensuring seamless protection for businesses in the technology sector.

For IT service providers, the risks associated with software failures, cyber incidents, and data breaches can be significant. IT Liability Insurance provides the necessary safety net, covering claims related to both tangible and intangible losses. Whether your business is involved in software development, IT consulting, or hardware solutions, this insurance offers a comprehensive layer of protection to ensure that your business can operate confidently in an ever-evolving technological landscape.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

What does IT Liability Insurance cover?
IT Liability Insurance combines Public & Products Liability and Professional Indemnity cover. It protects against claims related to professional negligence, errors, or omissions in IT services, as well as third-party injuries or property damage caused by your products or services. This dual coverage ensures that your business is comprehensively protected against a wide range of risks.
Who needs IT Liability Insurance?
IT Liability Insurance is essential for businesses providing IT services or products, including software developers, IT consultants, hardware vendors, and tech support companies. If your business offers advice, develops products, or provides IT solutions, this insurance helps protect you from potential legal claims and financial loss.
Why is IT Liability Insurance better than separate policies for Professional Indemnity and Public Liability?
IT Liability Insurance offers a seamless solution by combining Professional Indemnity and Public & Products Liability into one policy. This is crucial in the IT industry, where products and services are often intertwined. If these risks were covered separately, there could be gaps in coverage due to differing policy wordings. IT Liability Insurance ensures there are no gaps, providing comprehensive protection.
How does Professional Indemnity work within an IT Liability policy?
Professional Indemnity within an IT Liability policy covers claims arising from errors, omissions, or negligence in the professional services you provide. For IT businesses, this could include software development errors, IT consulting mistakes, or failure to deliver promised outcomes. The policy covers legal defence costs and any compensation if you are found liable for financial losses suffered by your clients.
Does IT Liability Insurance cover cyber incidents and data breaches?
While IT Liability Insurance covers some risks related to IT services, such as errors or negligence that could lead to data breaches, it does not provide comprehensive cyber coverage. For full protection against cyber incidents, including hacking, ransomware, and data theft, you may need a separate Cyber Insurance policy. It’s essential to discuss this with your broker to ensure all cyber risks are adequately covered.
Can IT Liability Insurance protect my business from claims related to product failures?
IT Liability Insurance includes Products Liability, which protects your business from claims related to product failures or defects that result in third-party injury or property damage. This coverage ensures that if a software or hardware product you supply causes harm or damage, your business is protected against legal claims and compensation costs.

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