Information & CommunicationTechnology

Organisations competing in the Information and Communication Industry operate in the fastest growing industry in the world against a backdrop of ever-increasing legal and legislative change.

Increased Litigation

As every facet of our working and personal lives becomes reliant upon technology, its failure can cause critical disruptions. There is moreover a heightened social awareness of legal rights in such circumstances. The Information and Communication Industry is consequently finding itself the increasing target of litigation.

Increased Exposure

Any organisation that develops, manufactures, licenses, sells, provides, advises, integrates any form of Information or Communication Technology (ICT) and related services is exposed to litigation. The failure of a product, service or incorrect advice will expose that organisation to claims.

The cost of legal representation itself, irrespective of any liability to compensate a client, can be potentially crippling to an organisation, and is seldom fully recovered even where the organisation has been found to have no liability.

In addition to the increase in litigation, the legal and legislative systems have found it difficult to keep pace with the change technology has made on our society. The result has been a number of contradicting legal rulings, which adds to the uncertainty in the application of laws and regulations governing the industry.

The Benefits of Information and Communication Technology Liability Insurance

Information and Communication Technology Liability Insurance provides protection for organisations against legal liability arising from the failure of their products, services and or advice in the conduct of the business. This Insurance combines and improves traditional Public and Product Liability insurance coverage to respond to the unique exposures of the Information and Communication Technology Industry. In addition to Public and Product coverage the policy incorporates Professional Indemnity into one insurance solution for the Industry.

The Insurance provides cover for settlements as well as coverage for Defence Costs associated with defending legal actions.

Comprehensive Protection

The shortcomings of traditional insurance such as Product Liability and Professional Indemnity for the Information and Communication Industry has prompted some insurers to develop a comprehensive product to meet the contemporary needs of clients. Information and Communication Technology Liability Insurance incorporates the benefits of the traditional policies of Professional Indemnity, Public and Product Liability.

But it also recognises the specific needs of the industry by ensuring a broad definition of ICT that incorporates products, services and advice and is common to both the Professional Indemnity coverage and the Public / Products Liability coverage all within one policy.

Optional Coverage Extensions

In addition to the standard policy features the insurance has several optional extnsions available:

• Licensee IP Rights which extends coverage by the insured's licensees;
• Contractors can be insured for their own liability
• USA & Canada exposure

 Information provided courtesy of QBE Insurance