IT Liability Insurance

Technology plays a critical role in modern business, but with it comes unique risks, from data breaches and system failures to professional negligence claims. For businesses in the IT and technology sector, even a small error or security vulnerability can lead to financial losses, reputational damage, or legal action.

IT Liability Insurance is designed to help protect businesses that provide technology services or solutions against these risks. Whether you develop software, manage networks, or offer IT consulting, having the right cover in place can provide peace of mind and financial protection in the event of an unexpected claim.

What is IT Liability Insurance?

IT Liability Insurance protects you and your business against legal liability occurring due to the failure of your IT products, services or advice. This type of policy combines professional indemnity, public liability and product liability into one insurance solution.

IT Liability Insurance provides protection for instances where an IT product fails, someone hacks into your IT systems or software and destroys or steals sensitive information, and when something goes wrong based on advice you have provided on an IT product or service.

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 occupations and organisations such as:

• Software Developers
• Electronic and Telco Equipment Manufacturers
• Telecommunication Providers
• Internet Service Providers
• Hardware Manufacturers
• IT/Computer Consultants
• Web Hosting Service Providers
• Systems Integration
• Hardware/Software Resellers
• Maintenance and Repair
• Data Processing and Warehousing
• Education and Training
• IT Maintenance and Repair Technicians
• Facilities Management and Outsourcing

Should I consider an IT Liability policy over separate Indemnity and Liability policies?

Due to the nature of IT, where you’re providing both a service and product simultaneously, it’s sometimes unclear where a claim should fall. The uncertainty is whether it should be placed under a product or public liability policy (third party claims for property damage or personal injury) or a professional indemnity policy (third party claims for financial loss).

This means that your claims could slip through the cracks between the two policies, particularly when they are placed with separate insurers. It’s best to get cover under the one IT Insurance policy, which will include all of the above.

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