IT Liability Insurance and Cyber Insurance address different exposures, and a technology business can need both.

IT Liability Insurance #

IT Liability primarily addresses certain claims alleging that technology products, services or professional advice caused another party loss.

Examples can include:

• Software errors
• Failed implementations
• Incorrect technology advice
• Project delays
• Data loss caused by professional services
• Product or system failure
• Public and Products Liability claims where included

Cyber Insurance #

Cyber Insurance primarily addresses cyber incidents affecting the insured business’s systems, operations or information.

Depending on the policy, this can include:

• Ransomware
• Malware
• Business email compromise
• Unauthorised system access
• Data breaches
• Incident response
• Forensic investigation
• Data restoration
• Business interruption
• Privacy liability
• Regulatory investigations
• Certain cybercrime losses

Can the policies overlap? #

Yes.

For example, if an IT provider’s alleged professional failure contributes to a cyber incident affecting its client, the resulting claim against the provider may involve IT Liability.

If the IT provider’s own systems are attacked, Cyber Insurance may instead be the more relevant policy.

The cause of the incident, who suffered the loss and the terms of each policy determine which cover may respond.

Contact our team if you would like us to review how IT Liability and Cyber Insurance work together.