IT Liability Insurance Australia
Information Technology (IT) sector professionals face potential liabilities from both clients and third parties on a daily basis. Clients expect to receive good, sound advice as well as a quality product, which includes installation. Clients depend on IT sector professionals to get everything right so that their systems work efficiently and they can get on with business.
Unfortunately, sound advice and quality advice does not necessarily protect IT sector professionals from liability. Disgruntled employees often seek to apportion blame once things go wrong and systems break down. It can lead to claims against them for compensation as well as legal costs that can, in turn, lead to a considerable commitment in terms of time when it comes to defending or settling the claim.
IT Liability Insurance Details
IT Liability insurance offers protection for organisations against any potential legal liabilities arising from various instances such as the failure of services, products, and/or advice that results from the business activities.
The Information Technology sector is one of the quickest growing areas of employment in Australia. IT Liability Insurance is specifically designed for this diverse and complex market and provides a seamless liability cover for IT services and products.
The Information Technology Liability policy combines Public Liability, Product Liability, and Professional Indemnity to cover professionals working in the IT sector from a range of exposures that may arise out of the service a client performs.
Who Requires IT Liability Insurance?
A wide variety of occupations that fall under the definition of Information Technology that may require Information Technology Liability Insurance. Broadly, the manufacturing, development, selling, licensing, advising, providing, or integration of any form of IT and related services by an organisation or consultant may be exposed to potential claims including:
– Telecommunication Services
– Systems Integration
– Systems Audit/Analysis
– Software Installation/Development/Maintenance
– Project Management
– IT Placement and Recruitment
– IT Consultants
– Web/ISP/Internet Service
– Hardware Sales
– Hardware Maintenance, Installation, and Repair
– Training and Education
– Data Processing/Warehousing Services
– Software Sales
What’s Included in the IT Contractor Package?
The IT Contractor package provides cover for a breach of the policyholder’s professional duty to a client in the provision of IT services. This is the professional indemnity cover. The IT contractor package also provides cover for products and public liability.
The IT Liability Policy’s professional indemnity section is issued on claims made and notified basis. It means that only claims first made against the policyholder during the policy period and notified to the Insurance in writing during the policy period are covered by the policy.
It is important to note that IT Liability policies typically don’t offer cover for any claims made against the policyholder during the policy period if at any time before the commencement of the policy period the policyholder became knowledgeable of facts that may give rise to such claims.
Products and Public Liability
Insurance providers often provide product and public liability for claims that arise out of the products the IT consultant may install onto a client’s system or bodily injury that may occur on their premises that arises from the work the consultant performs.
To some extent, the inclusion of the products and public liability cover is typically in response to commercial contracts between IT consultants and their clients that require these insurances in addition to professional indemnity.
Professional indemnity, Products, and Public Liability are usually offered as one package. The benefit associated with doing that is that it is virtually impossible for any claims not to be covered. If exposures are covered on separate policies, a situation might arise where two insurance providers covering separate exposure deny a claim’s indemnity by arguing that the other policy should have been triggered as opposed to the professional indemnity or the products/public liability policy.
Call Us Today for All Your Insurance Requirements
Information Technology Liability Insurance is a packaged product that combines Professional Indemnity, Products, and Public Liability into one innovative solution. It is important since numerous claims slip through the cracks in situations where it is not clear where the claim should fall.
Information Technology (IT) Liability insurance protects policyholders against legal liability that arises due to the failure of their IT services, products, or advice. As the reliance of society on technology continues growing so does the risk of liability.
Our expert team of insurance brokers understand the pressure that businesses are under to meet the expectations of clients and the risks that IT professionals face each day on the job. It is the reason why we usually take the time to assess the individual risk management requirements of our clients and exposure to deliver insurance solutions that best meet your business needs.
To ensure that your IT services business is protected, get in touch with our team today to find out how we can help. Give us a call today for an obligation free quote!