Information Technology Liability

A computer consultant received a letter of demand from a client seeking compensation for an unfinished and unsuitable website design.

The insurer agreed to advance defence costs and appointed a Panel firm without prejudice to assist the Insured in defending the claim.

Indemnity was granted with a reservation of rights in relation to ‘amounts paid or restitution’.

The insurer settled the claim with the claimant for $65,000 plus defence costs.

The provision of the 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.

As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this email is general only.  Coverage for claims on the policy will be determined by the insurer, not BizCover for Brokers, and will depend on the specific facts and circumstances involved.