IT Liability Insurance protects you and your business against legal liability occurring due to the failure of your IT products, services, or advice. This type of policy combines professional indemnity, public liability, and product liability into one insurance solution.

Professional Indemnity insurance protects IT professionals and their businesses from claims against them for potential losses arising out of actual or alleged negligent acts or omissions in the provision of professional services or advice. For claims covered by the policy, it pays compensation due to the third party, together with assisting with defence costs (these are the reasonable costs incurred in investigating and defending a covered claim, including legal fees, expert fees, and court costs). It is also becoming a more common contractual requirement for independent contractors to hold and maintain their own Professional Indemnity insurance policies.

Public Liability insurance is designed to provide protection for you and your IT business in the event a customer, supplier, or a member of the public is injured or sustains property damage as a result of your negligent or alleged negligent business activities.

Product Liability insurance extends to protect your businesses against claims by third parties relating to property damage or personal injury caused by your products. Product Liability insurance usually forms part of a Public Liability policy and the word “product” will be a defined term in the policy wording.