IT Liability
2 Docs
What is Run-Off Cover
Last Updated: July 29, 2025Run-off cover is a type of insurance that kicks in after you stop working, retire, or sell your business. Run-off cover extends a claims-made insurance policy, protecting you against claims that arise from past work, even when you are no longer operating. It’s most often used with Professional Indemnity Insurance, which only responds to claims made during the policy period. Without run-off, you could be left exposed if a client brings a claim months or even years after your last job. Run-off can usually be arranged as an annual policy or paid up-front for multiple years. It has a step-down premium calculation, with a rough indication being that for 7 years of run-off cover, the premium will be around 4 times your last insurance premium. For example, your final year premium is $2,000. To obtain 7 years of run-off coverage, the premium will be approximately $8,000. If only one year of run-off cover is required, the premium is generally the same as your final year’s premium, which in this case would be $2,000. ** Note that each insurer operates differently and may offer amounts that differ from the indicated amount. ** Run-off is a smart way to protect your legacy...
Is IT Liability the same as Professional Indemnity Insurance
Last Updated: June 19, 2025Not exactly. While Professional Indemnity (PI) Insurance is a key component of IT Liability Insurance, the two are not identical. IT Liability Insurance is a specialised policy designed specifically for professionals in the IT and technology sector. It combines Professional Indemnity and Public Liability insurance under one tailored wording. This dual-coverage approach helps protect against a broader range of risks commonly associated with tech-based services and products. For example, a software error might result in a financial loss for a client, which is covered under Professional Indemnity coverage. At the same time, a hardware failure could cause property damage or injury (covered under Public Liability). If only one policy is in place, there may be gaps in coverage. IT Liability Insurance avoids this by integrating both protections into a single policy that reflects the real-world exposures of tech professionals. So, while Professional Indemnity covers claims for negligence, errors, or omissions in your professional advice or services, IT Liability goes further, addressing the unique blend of liability risks faced by those working in IT, such as developers, consultants, managed service providers, and suppliers of software or hardware. If you work in tech and are asked to hold Professional Indemnity, you will...