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Essential Guide to IT Liability Occupation Exposures

IT Liability Insurance is an essential consideration for professionals working in the tech industry seeking to reduce the financial impact of risks connected to their services. The scope of IT occupations is vast, ranging from software development, hardware reselling to website design (and everything in between), making it crucial to understand the specific requirements and exposures for each occupation.

This article explores some of the IT occupations that have exposures that can be covered by IT Liability Insurance, and some of the factors relevant to risk selection.

IT Consultants

IT consultants can encompass a wide range of services, making it necessary for insurers to understand the specific nature of their work, the types of clients they deal with, and the industries they serve. This information helps insurers assess potential risks and provide appropriate coverage.

Software Developers

Insurers need to know the nature of the software being developed, as it influences the level of risk. For instance, software for CRM systems may have a lower risk profile than military tech. Website information may not always provide adequate information for determining risks, as websites are often designed for marketing purposes and may not accurately represent a company’s services or clientele. Knowing how and what the software is used for is a necessity for the underwriter to understand the risk.

Retail Telephone Stores and CCTV Sales and Installation Services

IT Liability Insurance can cover both white-collar and blue-collar work, such as installation services for CCTV systems or telephone retail stores. Insurers need to know the specifics of the installation work, such as trench depths or hot work requirements.

IT Helpdesk Support Services and Managed Service Providers (MSPs)

The type of support provided and the clients being served must be disclosed to determine coverage. MSPs, in particular, have been under scrutiny due to cybersecurity incidents and delayed security patch implementation.

Cybersecurity Providers

Cybersecurity providers include individuals or organisations offering penetration testing, cyber assessments, and containment response services. Cover may be limited or denied depending on their client base and the specific services offered.

Website Design and Hosting Services

For hosting services, insurers need to know if the client is reselling services from providers like Amazon or Google or if they are hosting customer information on their own servers. The security and location of the servers are crucial factors in determining coverage.

SCADA and PLC

Supervisory Control and Data Acquisition (SCADA) and Programmable Logic Controller (PLC) systems are involved in monitoring and controlling industrial processes. They can have severe repercussions in the event of a system failure or cyberattack, finding an Insurance provider who is willing to cover these risks is becoming more difficult.

Understanding IT Occupations for your Clients

IT Liability Insurance is essential for professionals in various IT occupations. Understanding the specific nature of a client’s work, the nature and use of the product and the potential risks involved is crucial for insurers to provide appropriate coverage. As the IT industry continues to evolve and the risk landscape changes, it is vital for both professionals and insurers to stay informed and adapt their coverage accordingly.

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Important Notice

Berkley Insurance Company (limited company incorporated in Delaware, USA) ABN 53 126 559 706 t/as Berkley Insurance Australia is an APRA authorised general insurer. Information provided is general only and has been prepared without taking into account any person’s particular objectives, financial situation or needs. Insurance cover is subject to terms, conditions, limits, and exclusions. Underwriting criteria applies. When making a decision to buy or continue to hold a financial product, you should review the relevant Policy Wording.