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 for Internet Service Providers
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 internet service providers.
Scenario – The insured acted as a web host for a third party.
Problem – During back up procedures, a power surge occurred causing the server to lose the website. Back up tapes were found to be corrupted.
Outcome – This is a breach of Trade Practices Act and the policy responded to pay the claim in full.
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.”