AWARD-WINNING IT LIABILITY INSURANCE SPECIALISTS

 If your PI and Public Liability sit with separate insurers, a claim can sometimes fall into a grey area where each insurer argues it belongs under the other’s policy — leaving you stuck in the middle while it’s disputed. This is exactly the scenario a combined IT Liability policy is designed to avoid, since one insurer holds both sections under one set of terms.

Yes, a single IT incident can trigger both sections at once. For example, a misconfigured installation could cause a client’s financial loss (Professional Indemnity) and separately injure someone on site (Public Liability) from the same root cause, and a combined policy lets both respond under one insurer instead of forcing an argument over which one applies.

 For most IT businesses, a combined policy is the safer option, since it removes the risk of a dispute between two insurers over which policy should pay. Buying separately can occasionally work out cheaper, but it shifts more risk back onto you — worth a conversation with your broker before deciding.

 A claims-made policy only responds to claims first made and reported while your policy is active — not necessarily when the error itself happened. Most IT Liability policies in Australia work this way, which is why keeping continuous, unbroken cover matters more than it might for other insurance types.

A Certificate of Currency is a one-page document your insurer issues to prove your policy is active, showing your cover limits and expiry date. Clients and head contractors ask for it as quick proof of cover before letting you start work or sign a contract.

 A Certificate of Currency can usually be issued within minutes to same-day once your policy is active, so it shouldn’t hold up a tender deadline if cover is already in place. If you’re arranging a brand-new policy from scratch, build in a bit more time for underwriting.

Many set a minimum limit of indemnity — commonly $5 million or $10 million — as a contract condition, though this varies by project size and risk. Check the insurance clause in the tender documents, or ask your broker to match your cover to what’s actually required.

 Standard policies respond to negligence-based claims, not necessarily to liability you’ve voluntarily taken on beyond what the law would normally impose — such as an uncapped indemnity clause. Worth having contracts reviewed against your policy wording before signing broad indemnity language.

 In most cases, if an error originates from AI-assisted work you delivered, your Professional Indemnity section is likely to respond much as it would if a staff member had made the mistake, since insurers generally treat AI as a tool rather than a separate party. Some insurers are now asking specific questions about AI use at underwriting, so it pays to disclose how you use these tools.

 It’s a good idea to flag it, even where not formally required. Insurers are increasingly asking about AI use as part of underwriting, and undisclosed use could complicate a claim later — being upfront keeps your policy on solid ground.