IT Liability Insurance

What is IT Liability?

IT Insurance protects you from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.

There are two main sections of an IT policy which are:

  • Professional Indemnity insurance provides essential financial protection for IT Professionals against potential losses arising out of their professional service or advice. This includes but is not limited to acts, errors or omissions made by the IT Professional.
  • Public & Products Liability covers IT Professionals for their legal liability in the event of personal injury or damage to property to others during the course of normal business operations or as a result of a product defect. This includes where the public visit your home or business, or if you visit their premises.

The policy can also often be extended to include the following additional risks

  • Breaches of the Trade Practices Act
  • Defamation
  • Dishonesty of Employees
  • Loss of data and documents
  • Accidental Breach of Copyright and Intellectual Property Rights
  • Breach of Confidentiality
  • Sub Contractors where you are responsible for them
  • Loss Mitigation Expense
  • Unintentional Breach of Contract
  • Trade Practice Acts
  • Product Re-call Expenses

Why is it useful?

Professional Indemnity protects the IT Professional against claims of negligence or other act, error or omission made against them by a client. We combine this usually with Public Liability insurance for your additional protection mainly to avoid any dispute over how damage was caused. Was it physical damage or caused by programming or software error?

Coverage includes legal defence costs - no matter how baseless the allegations. IT Insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.

Information Technology and Telecommunications (IT&T) companies are facing increasing liability challenges and threats. Even the best managed IT&T companies can find themselves embroiled in legal action from ever demanding customers as the reliance on the products and services provided by IT&T company’s increases. They can face financial loss threats from the following sources:

  • Due to systems not being delivered within contractual timeframes
  • Due to systems not performing as intended or they are incompatible, inappropriate or ineffective hardware or software
  • Arising from software development risk even when the contract has not been completed
  • Arising from a breach of a third parties Intellectual Property Rights such as copyright, trademark or register design
  • Arising from loss of data, libel and slander and sub contractors acts
  • Data migration difficulties
  • Inadequate hardware or software support
  • Injury caused by faulty hardware or software
  • Physical loss of equipment
  • The consequential loss of revenue to a client suffered as a result of any of the above

Who can help?

IT Liability is a complex and specialised area of insurance. If you want to know more about professional indemnity and public liability and other Business Insurances, contact a specialist insurance broker such as Cooper Professional Risks. An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you from market knowledge. Call a good one.

Call CPR – Experts who will save you. Call 07 31231137 or email enquiries@professionalrisk.com.au

Latest News

High Court dismisses Business Interruption Test Case

Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.

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Three Years running - Insurance Brokerage of the Year 1 to 5 staff

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While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

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