To answer this question it’s important to explain that the IT Liability policy was actually created as an answer to an insurance dilemma for IT professionals and insurers alike - whether claims against IT professionals should be covered under a public/product liability policy (which covers third party claims for property damage and personal injury); or under a professional indemnity policy, (which covers third party claims for financial loss).
The problem is, even with both of these policies held; claims could potentially fall between the two – particularly where both policies are held by different insurers.
IT Liability solves this problem, and also in many cases helps to reduce the overall premium by combining both covers into one single policy tailored especially for the needs of IT Professionals including Software Developers, Telecommunication Providers, IT Consultants, Hardware/Software resellers etc.
Therefore in answer to the initial question, an IT Liability policy is actually much more than PI under a different name – it’s public and products liability and Professional Indemnity cover combined and in most cases it works out much cheaper than if you were to buy both policies separately.
To arrange an IT Liability Policy, or simply find out more you can contact the Professional Risks team at Coverforce Insurance Brokers on 02 8814 7777, or complete a quote request online here.
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