Specialist protection for IT consultants, software developers and technology providers against claims arising from systems failures, data breaches and professional errors.
IT liability insurance is a specialised form of professional indemnity insurance designed for technology-focused businesses. It protects against claims alleging that your IT services, software, systems or data handling caused financial loss, business interruption, data breaches or security failures.
As technology and data become increasingly central to business operations, IT liability insurance is now commonly required by clients, contracts and regulators — particularly where system failures or cyber incidents could impact third parties. This cover responds to legal defence costs, settlements and compensation arising from technology-related claims.
IT liability insurance is commonly arranged by:
Covers claims alleging errors, omissions or failure to exercise reasonable care in the delivery of IT services.
Responds to claims arising from failure to meet contractual obligations related to technology services or deliverables.
Covers liability arising from data loss, unauthorised access, malware transmission or system outages impacting third parties.
Protection against claims alleging copyright infringement, unauthorised use of software, code or digital assets.
Cover responds only if the policy is active when a claim is first made and notified, regardless of when the work occurred. Continuous renewal is essential to preserve protection for prior services and avoid gaps.
The retroactive date sets how far back past work or advice is insured. Claims arising from services performed before this date are generally excluded, making the retroactive period critical to protection.
Continuous cover is critical. Policy structure depends on contract terms, the type of technology services provided, data exposure and whether cover is aligned with cyber insurance.
Technology failures can cause significant financial loss
Legal defence costs can escalate rapidly
Many client contracts mandate IT liability insurance
Cyber incidents often result in third-party claims
Past work can generate claims years later
Speak with a broker who understands technology risk.
Get My IT Liability Insurance QuoteImportant: IT liability insurance does not replace cyber insurance. While some overlap exists, cyber insurance addresses first-party and third-party cyber incidents, whereas IT liability focuses on claims arising from technology services. Policy terms, exclusions and limits vary significantly. Advice from a Seguro insurance broker is recommended.