Technology Liability

1. What is Technology Liability Insurance, and why is it essential for IT companies?

Technology Liability Insurance is a specialized policy designed to protect technology companies from financial losses due to errors, omissions, and performance failures in products or services. 

For IT companies, it’s essential coverage, providing robust protection against costly risks like data breaches, network security failures, and intellectual property disputes. This insurance ensures that your business can handle these high-stakes risks without compromising financial stability or reputation.

2. Who should consider Technology Liability Insurance?

Technology Liability Insurance is vital for any Tech firm or company providing digital products or services, handling sensitive data, or managing online platforms. It’s particularly relevant for directors and decision makers aiming to secure the company’s assets and reputation.

3. How do I know if I need Professional Indemnity Insurance or Technology Liability Insurance for my business?
It depends on the nature of your business. If your company provides general professional services—such as consulting, legal advice, or financial planning — Professional Indemnity (PI) Insurance is likely more relevant. It covers claims of negligence, mistakes, or poor performance that cause financial loss to a client.

If your business is in the Tech industry — offering software, IT services, or handling sensitive data — Technology Liability Insurance is a better fit. This insurance provides a broader range of protection, including coverage for data breaches, network security failures, and intellectual property disputes. It’s specifically designed to address the unique risks faced by technology firms, offering comprehensive coverage beyond traditional professional liabilities.

4. What risks does Technology Liability Insurance cover?
This insurance covers a broad spectrum of risks, including:

• Failure to Perform: Financial loss from not meeting contractual obligations or performance standards.
• Network Security & Data Breach: Protection against data breaches, cyberattacks, and any resulting legal/regulatory costs.
• Intellectual Property Protection: Coverage for claims of copyright, trademark, and other IP infringements.
• Media Liability: Protection against liabilities related to media content, such as defamation or copyright issues.