Liability insurance for programmers and IT companies
Professional Indemnity/Professional Liability/Errors&Omissions
Liability insurance protects the insured person from the consequences of damage caused to third parties.
Learn how Professional Liability for IT (also known as Programmer’s Liability or IT Company Liability) can help protect your business.
PROFESSIONAL INDEMNITY INSURANCE FOR THE IT INDUSTRY - WHAT IS IT?
Professional Liability for IT (Programmer’s Liability, IT Company Liability, IT Professional Liability) is a specialized product designed primarily to protect services related to systems design, programming, administration, or other IT activities. This liability insurance provides comprehensive coverage for a wide range of IT services.
Our experience shows that freelancers and software houses specializing in software development or IT system administration most often choose this solution.
In the IT industry, where each project can carry significant liability, such protection is particularly important. Most international clients already require companies they work with to have a valid policy. Third-party liability insurance for IT covers the costs of legal defense as well as any compensation that may be required in the event of claims from clients or lawsuits.
THE SPECIFICS OF RISK IN THE IT INDUSTRY
Technology companies operate in a specific environment.
The biggest risks here are intangible and can lead to pure financial losses.
Here are some key areas of risk for IT:
- Software bugs.
- Personal data security breaches (e.g., RODO).
- Service interruptions
- Intellectual property violations.
- Failure to meet project deadlines.
- Limitations of traditional liability policies.
And many other risk elements relevant to the IT business.
All these risks are covered only by specialized professional liability insurance for IT.
Standard business liability policies are designed with traditional businesses in mind and typically focus on:
- Personal injury,
- Property damage,
- Product liability.
Unfortunately, these areas of protection do not correspond to the main risks faced by IT companies.
Traditional liability policies often do not cover:
- Pure financial losses to customers (a key risk in professional liability for IT),
- Costs associated with data security breaches,
- Responsibility for code errors or faulty software,
- Damages resulting from intellectual property infringement,
- Claims arising from failure to provide IT services on time.
PROFESSIONAL VS GENERAL INSURANCE - DIFFERENCES
Professional liability for the IT industry (often referred to as programmer’s or IT company insurance) primarily protects against damage caused to third parties. It covers potential financial losses that clients or other third parties may incur due to errors or omissions by the service provider.
For example, such damage could occur if software is delivered with a defect that causes a client’s business operations to halt, resulting in financial losses.
It’s worth noting that standard business and property liability insurance typically excludes IT activities (or financial losses related to software) in its general terms and conditions. Such policies usually only cover property and personal damage, even if a pure financial loss clause is included. In short, a standard policy is often insufficient for IT-related risks.
For example, a standard business liability policy might cover the loss of a contractor’s laptop, but it would not cover financial losses caused by software errors or IT service failures.
WHAT DOES PROGRAMMER AND IT COMPANY LIABILITY INSURANCE PROTECT AGAINST?
Insurance protects against third-party claims as a consequence of errors and omissions related to the performance of IT services.
Professional Liability for IT (Professional Indemnity, Professional Liability, Errors&Omissions) will protect you from potential claims by your contractors and other third parties.
If you make a mistake in your work, omit something or overlook something – the insurer, subject to the exclusions and limitations of liability referred to in the general terms and conditions of insurance, will pay compensation on your behalf.
So you don’t have to worry about potential threats.
Professional liability insurance for IT protects you and your company comprehensively.
The basic coverage of professional liability insurance for IT in Chubb includes protection for claims arising from:
- Technology Breach, including those resulting in a Third Party Privacy and Network Security Incident – includes, but is not limited to, errors, omissions, omissions; breach of IT service contract, deletion or corruption of data; invasion of privacy and reputation; breach of network security; legal assistance costs.
- Infringement of Intellectual Property Rights – includes, among other things, infringement of property and personal copyrights, design rights, trademarks, trade names, Internet domains, and impersonation of another’s product or service.
- Dishonesty – includes actions of a criminal, dishonest, fraudulent or malicious nature, e.g., employees or subcontractors; however, this does not include partners, officers or senior management or their spouses.
- Violations Related to Media Activity – includes, but is not limited to, publication and distribution in the media (in electronic, written or oral form) of materials and content constituting slander, libel, plagiarism, piracy, discrediting the product or service of a specific entity.
Important! A professional liability policy also provides coverage for the costs necessary to assess the validity of claims made against you, so among other things, the cost of legal assistance.
Extensions of professional liability insurance coverage for IT
(insurance for programmer/company) at Chubb include:
Benefit for costs of court appearance and disruption of work
PR and crisis management costs
Claims arising from loss of other people's documents
Coverage for damages caused by Subcontractors and outsourcers
Contractually Assumed Event Response Costs.
PROFESSIONAL LIABIALITY INSURANCE FOR IT AT UBEZPIECZENIEIT.PL
AVAILABLE INSURANCE AMOUNTS
PLN 500 thousand, PLN 1 million, PLN 2 million, PLN 3 million, PLN 4 million, PLN 5 million, PLN 6 million, PLN 7 million, PLN 8 million, PLN 9 million, PLN 10 million
* companies with revenues of up to PLN 500,000 in professional liability can choose a limit of max PLN 5 million.
CALCULATE YOUR PREMIUM IN SECONDS
Do you need an IT liability policy in a foreign currency?
Go through the purchase process, pay for the policy, and then contact us – we will convert the amounts according to the NBP exchange rate of the day.
Available territorial coverage of professional liability insurance for IT
The whole world excluding the U.S. and Canada and Cuba and sanctioned territories
OR
If you extend protection to the US and Canada – the whole world excluding Cuba and sanctioned territories.
If entering into a contract with a contractor is contingent on you being insured - this product is probably for you.
PROFESSIONAL INDEMNITY FOR IT - EXCLUSIONS OF LIABILITY
Exclusions of liability are one of those elements that affect what the insurer’s scope of liability is stated in the policy. Exclusion provisions can be found in the terms and conditions of the contract (T&Cs) and address situations in which the insurance company does not take responsibility for the loss.
Information on the terms of the insurance coverage provided, including information on limitations and exclusions of liability, can be found in the general terms and conditions of insurance.
SAMPLE INSURANCE DOCUMENTS
The insurance policy and certificate are key documents that confirm the insurance contract and clarify the terms and scope of coverage.
Below are samples of these documents to help you better understand what information they contain and how they are organized.
*Certificate assuming that the following are selected:
– Professional Liability – limit 1 million PLN,
– Cyber – limit 1 million PLN,
– General Liability – limit 1 million PLN.
– Coverage without US.
FREQUENTLY ASKED QUESTIONS -
OCCUPATIONAL OC FOR IT
Professional Liability Insurance (Programmer’s Liability Insurance/IT Professional Liability Insurance) is the backbone of protection for IT companies. It is the one that is responsible for damages resulting from errors in work related to IT services. It covers third-party claims related to the occurrence of financial losses (loss of profit, increased costs of doing business) in connection with the performance of IT professional activities (including but not limited to software design, programming and delivery, IT consulting services, software installation, IT equipment maintenance, data processing, IT project management, IT training services, etc.).
Business liability insurance is also responsible for covering third-party claims. This time, however, we are talking about property damage and personal injury arising in connection with the conduct of business activities (running an office, traveling to conferences and other meetings, using leased property, hiring employees and the resulting liability, etc.).
Cyber insurance protects against the effects of hacking attacks, data loss and damage to a company’s reputation. It also offers support in restoring operations after a cyber incident.
We described more at: https://ubezpieczenieit.pl/en/insurance/cyber-by-chubb
Yes. Under all these names is the same product – professional liability insurance for IT. You can read more about it: https://ubezpieczenieit.pl/en/insurance/oc-for-it
A good liability policy for a programmer should meet several conditions. It must provide comprehensive protection, guarantee reliability, protect finances comprehensively. The policy for a programmer should be provided by a world-class insurer. We write more about what insurance for a programmer to choose and what to avoid in a blog article: https://ubezpieczenieit.pl/blog/red-flagi-przy-zawieraniu-ubezpieczenia-na-to-zwracaj-uwage
If you are a contractor and work on your contractor’s equipment – you are not required to implement MFA.
If you run a company with employees, implementing MFA is a prerequisite for purchasing Cyber insurance.
Learn more from our blog article: https://ubezpieczenieit.pl/blog/wymagania-ubezpieczycieli-uwierzytelnianie-wieloskladnikowe-ang-multi-factor-authentication-mfa
The package includes three insurance products: professional liability insurance, general liability insurance and Cyber insurance.
The product is the same – professional indemnity insurance for IT. Whether you are looking for Programmer’s Liability or want to insure an IT company – you need a Professional Indemnity policy. You can extend the insurance with General Liability and Cyber, creating a #safeIT package.
Selecting a specific business area from the list on step 1 of the calculator is used to assess our risk. Regardless, however, the WHOLE business is insured.
CONTACT US
575 155 685
IT Insurance Ltd.
Wrocławska 98/1
81-530 Gdynia
+48 575 155 685
help@ubezpieczenieit.pl
KRS: 0000527586
REG: 222178401
NIP: 5862292598
AGENT NO: 11223850
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