What Is I.T Liability Insurance?


IT Liability insurance generally offers protection for an organisation against possible legal liabilities that may arise from such events as the failure of services, products or advice given resulting from the businesses day to day activities.


What is Included in the IT Liability Insurance Policy?


An I.T Liability Policy generally consists of 2 core sections

  • Professional indemnity Insurance (PI)
  • Public Liability Insurance (PL)


Professional Indemnity


As an individual or business providing a high level professional service you are accepting the risk of employees and executives in a position of advisory making a mistake that could lead to costly legal action & further more settlement against you resulting in payouts, reputational damage that can have potentially crippling outcomes for your business whilst also placing massive personal tolls on both the staff in question and the business owners whilst the process is playing out.

The allegations may be baseless however it is not always that you have done something wrong it can also be the costs incurred to prove your innocence. Generally, people point the finger prior to either focussing on the truth or removing their emotions from the situation. As un fair it is the reality is that it does happen.


Public & Products Liability Insurance

Public Liability insurance is designed to protect your business & employees against the accusation and compensation awarded from negligence resulting in personal injury or property damage incurred as a result of your business’ activity or products your business provides. As a business owner you already have enough to worry about. Public Liability insurance is your protection if you are found to be legally responsible for personal injury to a third party or damage to their property

You need Public Liability insurance in general & especially if your customers visit you or you go out to see them, either at their premises, in public locations, or places owned and/or controlled by others.


What Is Covered Under An IT Liability Insurance Policy?


IT Liability insurance general cover claims arising from events such as:

  • Personal Injury and/or Property Damage, as defined under the traditional liability cover
  • Infringement on trademark, copyright, registered design, libel, and/or slander
  • Errors and Omissions, that result in economic losses
  • Failure of computer products, services and/or advice


Who Requires IT Liability Insurance ?


As a business owner or contractor you will generally know if your business has an I.T Liability exposure.

Below is a short list of some of the general vocations/activities we see requiring I.T Liability Insurance

  • IT Recruitment and Placement Services
  • IT Consultants
  • Systems Analysis/Audit
  • Hardware Sales
  • ISP/Web/Internet Service
  • Software Development/Installation/Maintenance
  • Software Sales – Packaged/Third Party Software


For more information or to request a quest please contact Bespoke today.