If you run an IT company in Australia, whether that’s software development, cloud services, managed IT support, or even cyber security consultant, you’re probably aware that the risks aren’t the same as those faced on a building site or a retail store. 

Your day-to-day might not involve heavy machinery or high foot traffic, but that doesn’t mean you’re free of exposure. The risks you deal with can be just as damaging, if not more so, because they often hit your reputation, your clients’ trust, and your financial stability.

At CIG Insurance, we help you understand the common risks in your industry, identify the cover that matters most, and secure tailored protection through a broker who knows your business inside out

Common Risks Faced by IT Companies

 

Technology is fast-moving, and mistakes can be costly. Some of the major ones we see include:

Cybersecurity threats

Probably the number one risk in IT right now. Even if you’ve got strong security, a client could still hold you responsible if their system is breached under your watch. Ransomware, phishing, data theft, the list goes on.

Intellectual property disputes

Code, software, designs, content… these things are valuable, and disputes over who owns what can drag a business into expensive legal trouble.

Professional liability risks

If your advice or services cause a client to lose money, you could be held liable. It doesn’t have to be a huge failure either; a small coding error that knocks out a client’s system for a day can cause major losses.

 

Service Interruptions

If your infrastructure goes down, it can impact dozens or even hundreds of clients at once. Downtime isn’t just inconvenient; it can be a legal and financial headache.

Key Insurance Policies for IT Companies

 

Here’s where the right cover can make a difference. Each of these policies is designed to protect you against a different part of the risk puzzle.

1 IT Professional Liability Insurance

This is the big one for IT companies. It is a composite policy providing cover for Professional Indemnity and Public & Products Liability Insurance.

It covers you if a client claims you’ve been negligent, made an error, or given advice that led to financial loss. Without PI, you’re effectively on the hook for legal defence and any settlement or damages.

If a client or member of the public is injured at your office, or you sell hardware that malfunctions and causes damage, you’re exposed. Public & Products Liability cover helps protect against those claims.

2 Cyber Liability Insurance

Cyber cover helps with costs around data breaches, ransomware, system hacks, and even reputational damage. It often includes things like forensic IT support, public relations help, and credit monitoring for affected clients, essentially services that can run into the hundreds of thousands.

3 Business Interruption Insurance

If something happens that forces your business to stop trading, think fire, flood, or a major system outage, this cover can help keep cash flowing by covering lost income and certain operating expenses.

4 Property Insurance

From laptops to servers to the office fit-out, you’ll want cover for your physical assets. Property insurance covers theft, fire, and other damage.

5 Directors & Officers (D&O) Insurance

If you’re running a company with directors or key officers, this is worth looking at. It protects the personal assets of company directors if they’re accused of mismanagement, breaches of duty, or other governance issues.

6 Optional/Industry-Specific Coverages

Not every IT business is the same. Some may need more tailored protection:

  • Errors & omissions (E&O), which is especially relevant if you’re providing managed IT or cloud services.
  • Intellectual property insurance is for companies developing software, apps, or creative assets. This can cover disputes over ownership or infringement.
  • Portable equipment insurance, if you or your team travel with laptops and gear, this ensures you’re covered outside the office.

What’s Not Covered by IT Insurance?

It’s just as important to know what’s not included. Policies usually won’t cover:

  • Intentional or criminal acts
  • Known defects or issues you didn’t disclose
  • Contractual penalties
  • Wear and tear on equipment

This is why reading the fine print and tailoring policies to your business is key.

How Can CIG Insurance Help? 

At CIG Insurance, we’ve been helping Australian businesses protect themselves for close to 30 years. As part of the Steadfast Network, Australasia’s largest general insurance broker network, we’ve got access to policies and products that aren’t available to the general public.

Running an IT company in Australia means juggling opportunity and risk every day. Technology is high reward, but the flip side is high liability. The right mix of insurance policies can take a lot of the stress out of that equation, letting you focus on building solutions and growing your business.

If you’re not sure whether your current cover stacks up, it’s worth having a conversation. A quick review could highlight gaps you didn’t even know were there.

Speak with one of our brokers today.

Curious about Insurance for IT Companies?

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