The following policy exclusions are common under Information Technology Liability Insurance Policies:
Professional Indemnity Insurance
The Professional Indemnity Insurance Policy generally does not cover:
- Assumed Duty or Obligation – Any contractual liability accepted by the policyholder beyond that which the Common Law would impose. Related Parties – Claims against any person covered by the policy brought by a person, firm or corporation who is also covered by the policy or by any entity controlled by the policyholder or policyholder employee.
- Refund of Professional Fees, Cost Guarantees or Trading Debts – Claims for professional fees, cost guarantees or trading debts.
- Known Defects – Claims arising from the sale, supply or distribution of Information Technology known to the policyholder to be defective or ineffective in fulfilling the purpose for which it is intended or to perform as specified.
- Product Recall – Claims for the cost of withdrawal, recall, inspection, repair, modification, replacement and loss of use of Information Technology where it is withdrawn from the market or public use because of a known or suspected defect, deficiency or inadequacy.
- Faulty Workmanship – Claims for the cost of performing, completing, correcting or improving any work done or undertaken by the policyholder.
- Product Recall and Repair – Claims for compensation for damages that have been claimed for the withdrawal, inspection, repair, replacement or loss of use of the policyholder‘s products.
- Contractual Liability – Claims for compensation for personal injury or property damage under any contractual liability assumed by the policyholder only by agreement unless it would have existed without the agreement or implied by law.
- Information Technology Exclusion – Claims in connection with any computer virus, or the design of any computer hardware or software.
It is important that you understand the extent of your policy coverage and your insurance requirements. Policy coverage is always subject to the terms, conditions and exclusions of the insurance contract and policy wording provided by the insurer.
Each insurance company has its own policy wording. This means that coverage can vary considerably from one insurer to another. It is vital that you compare each policy based on the appropriateness of cover for your individual or business needs.
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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.
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