Professional Indemnity Explained - IT Insurance Terms You Need to Know

Professional Indemnity Explained - IT Insurance Terms You Need to Know

Technology and IT companies own valuable intangible assets, such as intellectual property, sensitive data and/or software.  

A general Public Liability Insurance policy only provides protection in the event of bodily injury or property damage, often leaving many key risks exposed.

However, bespoke Tech Insurance cover is designed to protect against the significant risk of economic loss related to Errors and Omissions (Professional Indemnity Insurance), intellectual property, network liability, and network and cyber property security.

Risk Management is Critical

A comprehensive risk management plan needs to guard against the unique exposures that technology operations present.

Specialist technology insurance is still relatively new, and the terminology is continuing to evolve as more claims are handled, and new exposures are discovered.

As a result, the Insurance language can often seem confusing and hard to understand. The following terms are some of the most common you will need to know to best understand your technology insurance protections:

Cyber Liability

A cyber liability policy is a cover that protects against damage from cyber-attacks, data breaches and other basic risks that result from using electronic communications and data storage.

They often cover the cost of recreating damaged or lost data or systems but do not include the costs that stem from the loss or damage, including legal expenses and data notification costs.

Sometimes the term cyber liability is used broadly to describe technology-related risks and technology-specific insurance in general.

Cyber Property

The intangible property your company owns. This can include websites, data and networks. These intangible assets can all be damaged.

To protect your cyber property, you may need to broaden the property enhancements on your existing policy.

Also, check if you have any cover that would protect if your company or an employee caused damage to another organisation’s cyber property.

Technology E&O

Technology errors & omissions (E&O) cover protects against claims by a client that they suffered a loss due to mistakes by your company.

These mistakes must be due to error or oversight in a product such as a software programme or web service.

Media and intellectual property liability – All content on the Internet is considered to be published, meaning it is subject to copyrights and infringement.

Negative content about a person or company can be regarded as libellous. Take caution when publishing or posting anything to websites, forums or social networking sites.

Free Tech Insurance Review

The risks and exposures for technology businesses will continue to grow, as does the technology industry.  

Insync Insurance is a specialist in all types of Tech cover, including Professional Indemnity Insurance and Cyber Liability exposures.

You can request a quote online, alternatively, why not book a free review with one of our expert Gurus at a time that suits YOUR diary.