IT Liability Insurance allows Technology Companies to limit liability for third-party claims. It combines cover for:

● Professional Indemnity: If your advice or service results in third-party financial loss.

● General Liability: If your products or services cause third-party injury or property damage.

Technology businesses need indemnity and liability cover because they face risks associated with offering products and services. It is important for indemnity and liability to be covered together on the same policy. If you insure these risks separately, you may end up with a gap in cover.

The type of liability coverage a business needs will depend on whether they provide products, services, or advice. Since a technology company typically offers a combination of products, services and advice — they need a policy that covers more than one type of liability.

The main benefit of IT Liability Insurance is that it offers all of the necessary liability coverage under one policy. When you cover indemnity and liability separately, claims can slip between the cracks. If your insurers disagree over who is responsible for a claim, you may end up covering it yourself.

➤ Claim example

You tell a client that software you are installing will not clash with their firewall. A clash happens and their system goes offline. Your client asks you to cover the cost of repair.

Your insurer could view the claim as:

If you have insured for all three scenarios under one policy, it will not matter which your insurer picks.

If you have insured for these scenarios under different policies, then you are open to risk. If your indemnity insurer declines the claim as a liability issue, and your liability insurer declines the claim as an indemnity issue, you may be left out-of-pocket.

➤ Professional Indemnity

This section covers financial losses incurred by a third-party as a result of your service or advice. It can include claims related to your errors and omissions. It extends to both legal fees and settlement costs.

➤ Public and Product Liability

This section covers costs related to third-party injury or property damage. It includes claims that result from product malfunction and from day-to-day business activity. The cover is not limited to your business premises. It will apply for on-site work.

➤ Cyber Insurance

This section is for costs and losses that your business incurs as a result of cyber attacks. It is a common part of IT Liability Policies because of its particular applicability to IT providers. Covered events include malware attacks, cyber extortion and social engineering.

➤ Management Liability

This section covers managers and directors for risks associated with running a technology company. This includes costs related to mismanagement allegations, legal breaches, third party crime, tax audits and identity fraud.

Please complete this Proposal Form and return to our brokers below to arrange an Information Technology Liability Insurance quote. (Download Here)

At KBI, we have leveraged our networks, strong relationships and our insurance/risk management knowledge of the Technology sector to customise insurance solutions specific to each firm’s needs. We provide expert advice to make the process seamless and help our clients better understand their insurance program – helping them make an informed decision.