The IT industry is vast and covers a huge array of professions including IT Software Development, Design, Maintenance, Analysis, Testing, Programming and/or Sales as well as many more.
IT professionals can be liable for mistakes or failures that cause a third party to suffer a financial loss such as:
- Loss of data
- Business interruption
- Data migration difficulties
- Inadequate hardware or software support
- Injury caused by faulty hardware or software
- Physical loss of equipment
- Incompatible, inappropriate or ineffective hardware or software
Claims Scenario – Managed Cloud Services
Claims can occur in any part of the industry from any of the above professions, for any of the above reasons (as well as many more) and this article will show one scenario of how this can occur. The following scenario is specific to IT management systems.
Scenario – An IT company was engaged to provide an upgrade to a network appliance storage server for a hospital.
Problem – The upgrade failed which caused the system to crash rendering the storage server unavailable. this meant the hospital staff could not access online patient records, x-ray and scan imaging and other information. When a recovery was attempted, it became apparent that all data stored on the server had become corrupted and was lost.
Outcome – A restoration from the latest back up tapes had to be commenced. The IT company was required to engage external resources to assist with the restoration and fly in resources from the manufacturer. The server was finally restored after several days during which time the hospital staff had to rely on limited manual records putting people's medical treatment at risk. the insured's policy responded and paid the claim.
As you can see from the above scenario, the IT Company simply made a mistake but it could have been a very costly one if not for their insurance. The solution is simple – purchase insurance cover to protect your business from costly claims.
Quotation Options for IT Professional Indemnity & Liability Insurance
As the business of IT Professional differ, so too do our insurance solutions. we have many options available for you to obtain a quote. However, if you would like to discuss your specific needs to obtain a quotation over a phone, please contact us.
Please also find some useful links to provide you with some further information regarding IT Professional Indemnity and Liability Insurance:
Disclaimer – “This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.
“Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.”