Information Technology Liability Insurance: Finding the Right Cover for Your SME Clients

Technology is becoming more important to small businesses across Australia. Whether they’re integrating new software into their business processes, upgrading to cloud solutions, or just installing a new telecommunications system, SMEs are constantly looking for efficient ways to help them run their enterprises.

But what about the small businesses who provide these services to others? You may have SME clients on your books who could benefit from the Information Technology Liability (ITLinsurance products that are part of the B4B offering.

What is Information Technology Liability insurance?

Information Technology Liability covers your clients for the failure of IT products, services or advice. This is a combined product offering both Professional Indemnity and Public & Products Liability insurances, that address the potential overlap of the provision of professional services and supply of goods that is reality for many IT providers.

Combined cover for IT professionals

The field of IT is complex, which can cause uncertainty when it comes to insuring SMEs. There is often legal uncertainty surrounding common IT activities. For example, is designing software for a customer providing them with a product or a service? Depending on the policy your clients have, confusion over this could lead to their claim being denied.

The ITL products on offer through BizCover for Brokers combine both Professional Indemnity and Public & Products Liability. This provides SMEs in the IT industry with more comprehensive cover designed specifically for the field’s unique needs. And less confusion can give your SME clients more confidence and peace of mind.

Who is Information Technology Liability insurance for?

ITL helps protect SMEs who provide IT services to other companies. This includes a wide range of occupations, including:

  • Information Technology Service Providers
  • Software Development and related modalities
  • Network Engineering
  • IT Consultants
  • Computer Programming Services
  • Telecommunication Services
  • Internet Service Providers

Claim example

Here’s ITL in action, with a real-life claim scenario from one of our insurer partners:

The Insured specialises in customised web design and development. The Insured agreed to develop a specific website solution for a start up, online property auction business being established by the Claimant. The Claimant alleged that various functions of the website did not work, and that the Insured did not develop the website, deliver the design, or technical specifications as required. The Claimant sued for loss and damages in excess of $500,000.

A settlement sum of $341,000 was reached and with a further $88,600 in legal spend to defend the Insured.

BizCover for Broker’s IT offering

The B4B platform boasts a great Information Technology Liability offering for your SME and micro-SME clients, with:

  • Cover options from three insurers—AIG, DUAL and Vero
  • Professional Indemnity limits from $500,000 to $10,000,000
  • Public Liability limits from $5,000,000 to $20,000,000
  • Insured Turnover up to $5,000,000


You can bind multiple products at the same time using a single data entry through the B4B platform. That means you can also bind Management Liability, Cyber Liability or any of our five other products on offer. Fully protect your SME clients and streamline your brokerage at the same time—a win-win!

Ready to bind your next Information Technology Liability policy? Log in now to get started.



*The information in this article is general only and should not be relied upon as advice. BizCover for Brokers is a registered business name of BizCover Pty Ltd (ABN 68 127 707 975; AFSL 501769).


The provision of claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.