Insurance for Information Technology Businesses

An IT business is trusted with two things at once: the work itself, and the client systems and data it touches to do the work. A project that misses its mark, advice that turns out to be wrong, or a breach that reaches a client through you, all land back on your business, and defending any of them costs money whether or not the allegation holds up.

We arrange insurance for IT businesses of all shapes, including consultants, software developers, web and app studios, and managed service providers. We take the time to understand what you deliver and what your client contracts commit you to, so your cover matches the promises you have made.

Key covers to consider

• Professional Indemnity: claims that your advice, code or services caused a client a financial loss
• Cyber Liability: a breach of your own systems, or of client data in your care, and the cost of responding to it
• Public and Products Liability: injury or property damage at your office or on a client's site
• Business Pack: office premises, contents, servers, laptops and equipment, including gear taken off site
• Management Liability: employment disputes, OH&S, and claims against the business and its owners and managers for alleged mismanagement
• Workers Compensation: compulsory cover for businesses with employees and apprentices
• Commercial Motor: vehicles used for client visits and installations

Common questions

What is the difference between professional indemnity and cyber cover?

Professional indemnity responds when your work causes a client a financial loss, such as a project that fails or advice that turns out to be wrong. Cyber responds when systems or data are breached, including client data in your care, and covers the work of responding as well as the loss. IT businesses are commonly exposed to both, which is why the two are often arranged together.

We're building AI features. Does that change anything?

Insurers are starting to ask about AI use, and some wordings are adding AI-specific exclusions or clarifications. Disclose it on the proposal and check the wording covers errors in AI outputs.

Does my policy cover open-source software or third-party tools we use?

Your liability arising from your use of them is usually covered under PI. The vendor's own failures aren't, and IP infringement claims involving open-source licences can be complicated. Keep a software bill of materials.

We sell to US or Canadian clients. Does that matter?

Yes. Many policies exclude or restrict US/Canadian jurisdiction or charge more for it, because of legal costs and damages awards there. Declare your revenue by territory.

If a client gets hacked because of my code or configuration, which policy responds?

Usually Professional Indemnity, because the claim comes from your professional service. Some policies deal with this under the cyber section. Policy wordings and coverage do depend on the insurers and the exact circumstances that have occurred.

My client wants me to sign an unlimited indemnity. Is that insured?

Generally not beyond what you'd be liable for at law. You should have the contract reviewed first before agreeing. Negotiating a liability cap (often a multiple of fees or the Professional Indemnity limit) is the single best risk control for IT businesses.

What do insurers want to see before offering cyber cover?

Typically multi-factor authentication (especially on email, remote access and admin accounts), offline or immutable backups, endpoint detection and response, patching routines, and staff phishing training. Missing MFA is the most common reason for declines or high premiums.

What are the key factors determining my IT policy premiums?

Revenue (and where it comes from), services provided, client industries (financial services, health and government cost more), contract sizes, claims history; and for cyber, the number of records held and your security controls.

How Much Public & Products Liability Cover Do I Need?

It depends on the work you do and who you do it for. Many head contractors, councils, property managers and commercial sites set a minimum amount in their contracts before you can start. If you lease your premises, your lease will usually set a minimum level of public liability you must hold as a tenant, and often asks for the landlord to be noted on your policy. So check your contracts, your lease and any tender or site requirements first. Also think about the worst injury or property damage your work could realistically cause.

Cover level	When it's usually needed
$5 million	Small or hobby-sized businesses with lower-risk work, few or no visitors to their premises, and no lease or contract asking for more.
$10 million	Suits most trades and businesses working on client premises or dealing with the public. Often the minimum set by commercial leases, markets and event organisers, and many subcontract agreements.
$20 million	Suits higher-risk work such as specialist trades, construction, mining, transport operators, or working at heights. Often required by head contractors, government bodies, councils, shopping centres, mine sites and larger commercial clients.

We'll look at your contracts, your lease and your work, and help you choose a limit that fits.

Talk to a broker who knows IT

Tell us about your business and we'll do the comparing, the paperwork and the advocating.

Request a quote for your IT business