Information Technology Liability

A computer programmer was de-bugging a client’s software remotely and inadvertently deleted all the information in the client’s database, which had been inputted and saved on the software. This included customer records, accounts receivable and pending jobs. The mistake caused significant disruption to the client’s business and loss of income.

The insurer settled the claim with the client for $450,000 plus $72,061 in 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.