What are the risks to IT Professionals?

 IT Professionals biggest risk is without doubt, negligence due to an act, error or omission and in the information technology world claims do occur. Many smaller IT professionals may never see any claim, but when a claim occurs it can be significant. 

IT professionals hold themselves out as experts in a particular area and as a result can be held liable should they commit an error or omission in rendering their professional services. In addition, they have liability exposures arising from how they provide their services, such as allowing a third party unauthorized access to a client's systems.

In many cases the consequences of an error or omission greatly exceed the value of the work completed. And litigating an IT professional claim can be extremely expensive due to the highly technical nature of most of the subject matter.

The typical IT professional claim involves financial loss by a client due to an error or omission by the consultant. An example is the failure of an EDP consultant to recommend an appropriate system for a client, resulting in a financial loss to the client.

A claim or lawsuit may not always involve a clear error or omission. A client may not be satisfied with the result of the professional's work product and may bring a claim to obtain a 2

different result or avoid paying a fee. These types of claims are often just as difficult and expensive to defend as a clear-cut error, particularly where the subject matter is so complex. Insurance typically pays for the cost of defending this type of claim as if it were a clear-cut error on the part of the insured consultant.

While Internet-related professional exposures arise from services provided to clients by IT professionals such as web site development, they can also arise from damage a professional can cause to a client's systems resources. This latter exposure includes virus transmission, allowance of unauthorized access and loss of data. In addition, professional exposures can extend beyond traditional economic loss to contingent bodily injury or property damage for some professionals.

Some IT professionals also have media exposures that arise from intellectual property, defamation and invasion of privacy claims. The intellectual property exposures, such as copyright or trademark infringement, are an unpredictable and rapidly evolving area because the law as it applies to the Internet is not clearly defined.

For example, no clear definition has been established for standards of copyright infringement. Does a link from another site to your content infringe on your copyrights? Such a claim might arise if a website developer puts a website together for a client that includes a link to another site. If the owner of the other site brings a claim against the linking site owner for copyright infringement the IT professional will probably be brought in.  

 

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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