Professional Liability for IT Professionals

Sometimes called errors and omissions or E&O insurance, is available from a wide range of specialty lines insurers. Coverage and pricing varies greatly depending upon the type of organization, size, location and the specific services provided.

Because this coverage is a new and evolving it continues to change rapidly. Specific coverage provisions are important for IT professionals. One example of this is an IT professional's need for liability coverage for unauthorized access and virus protection. This coverage would protect the IT professional if its action caused a virus to be introduced to a client.

Limits and deductibles vary with the size and type of insured. Standard limits for most small to medium sized organizations start at $1million. Policy forms vary significantly, but the majority are claims made forms with defense costs included within the limit and deductibles.  

Latest News

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

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Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

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