Professionals in the IT industry face potential liabilities from clients and third parties everyday. As an IT professional, clients often depend on you for good advices and quality products so their systems can work well and efficiently. The problem is good advice and service doesn’t always protect IT professionals from liability. Because, unfortunately sometimes things can go wrong and systems may break down. The last thing you would want is for your disappointed clients to seek to seek a blame on you and make a claim for for compensation which can turn into a considerable time and money commitments for you to solve. The good news is you can protect yourself with a good public liability insurance for IT consultant. Here i will share with you the benefit of getting IT insurance for your business.
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Table of Contents
What is IT Insurance?
IT Insurance gives you and your business protections against legal liability arises due to the failure of your IT advices, products, or services. The policy normally combines with Professional Indemnity, Public Liability and Product Liability into one insurance solution to give you as much protection as possible.
Do I need IT Insurance?
If you are a professional or work in a company that performs any of the following services:
- Computer consultants
- Hardware/software developers, resellers & manufacturers
- Internet service providers
- Web hosting
- Internet services
- Telecommunication services
- IT recruitment and placement services
What you should look for when choosing the best IT liability insurance?
1. Who is covered under an IT Liability Policy?
IT Liability insurance policy normally covers:
- The entity, which includes any subsidiaries
- All partners, directors and executives (past, present, and future)
- All employees (past, present, and future)
- Contractors, Sub-contractors, and the work performed on behalf of the entity.
It is important for you to check if your chosen IT Liability insurance policy provides cover to all persons who give IT services, including the ones who might not be directly providing the services but might be named in the claim due to their position in the entity.
2. What do IT Liability policies provide cover for?
IT Liability insurance policy typically provides cover for a breach of professional duty to a client in the information technology industry including advices, products, or services.
It is important to note that depending on the which insurance company, IT liability insurance policy can cover many different things. Therefore it is very important to compare their policy schedules before you choose the one which suits you the most.
3. Are there any Additional Cover available?
Additionally, IT insurance policy sometimes will cover the following:
- Misleading conduct of the work to be performed
- Breach of Intellectual Property and CopyRights: of a client or third party
- Loss of documents or data
- Defence costs in association with the covered claims.
4. Does it include Professional Idemnity and Public Liability?
Many insurance company also provide products and public liability (as part of IT insurance policy) to give you the maximum protection for your services
The good thing about having professional indemnity, products liability and public liability combined in the same IT insurance policy is no claim more likely can slip through.
Companies that offer IT insurance
1. CGU
Pro:
- CGU’s IT professionals insurance provides protection tailored to your needs and requirements
- Provides flexible cover for your business.
- Include professional indemnity, public and product liability insurance.
AON
Pro:
- Aon offer competitively-priced, tailored insurance.
- Some overseas activities may be covered including USA & Canada
- May provided “run off covers” for your past activities after you have ceased business or retired
Auzi
Pro:
- Buy online in minutes
- A choice of cover limits and ways to pay
- Australian owned and operated
- 30+ years Insurance experience
Conclusion
Hope this article helps you understand about the advantage of getting a IT liability insurance. Please note that i am not affiliated with any of the companies mentioned above, i am just here to share my insights and hope that it is useful to others. If you have any suggestions please contact me.