InfoTech Liability Package

The CGU Professional Risks Insurance ‘InfoTech Liability Package’ has been developed to meet the special requirements of the IT consulting market.

Legal uncertainty exists over the character of some of the activities provided by IT consultants. In providing software advice and/or design, are they providing a service or a ‘product’?

A traditional Professional Indemnity policy may deem software to be a ‘product’ and not a ‘service’ in which case cover for the activity may be excluded under the policy. Traditional Public & Products liability policies may deem ‘software’ to be a ‘professional service’ and not a ‘product’, and therefore exclude it from cover under the policy. Understandably, the uncertainty has caused confusion in the handling of claims. Should the claim be treated as a ‘service’ and therefore be covered under a Professional Indemnity policy? i.e. the claim arose from a breach of the Insured’s professional duty. Alternatively, should the claim be treated as a ‘product’ under a Public & Products liability policy i.e. the claim arose out of a product or manufacturing fault?

CGU Professional Risks’ InfoTech Liability Package provides the convenience and benefits of its full Civil Liability Professional Indemnity and CGU’s Broadform Liability Insurance policies, under one cover. The Liability Package provides cover for both civil liabilities arising from the conduct of the Insured’s professional business practice, and third party loss caused by bodily injury or property damage. We do this by removing the ‘sale and supply exclusion’ in CGU Professional Risks’ Professional Indemnity wording. It allows a closer fit with the Broadform Liability policy, minimising uncertainty over the cover provided to IT consultants under this package.

For more information or a quote on this product please contact us.