Technology

The list of organisations that come under this banner is constantly changing with the technology itself but here are some of the main businesses:

• IT consultancy & training
• Internet service providers
• Software and App developers/publishers
• Software testing services
• Telecommunications
• Value-added resellers
• Data centres
• Social media or SEO services

Essentially, if you consider your business within the technology sector, you should make use of the specialist policies available.

Without it, you could be liable for thousands of pounds' worth of legal fees and compensation to your client if you are found to have been negligent in your services to them.

No matter how experienced you and your staff may be, it’s always possible to make a mistake or for a client to think that you have. But it’s not just about bad advice. A Professional Indemnity (PI) policy covers you against many situations, such as:

• Professional negligence
• Loss of documents or data
• Unintentional breach of copyright, intellectual property or confidentiality
• Defamation and libel
• Loss of goods or money for which you are responsible.

Impending legislation changes are likely to heighten the exposures to those holding and managing personal and sensitive data. Whilst professional indemnity will pick up claims in many areas an additional Cyber policy can dovetail with PI cover to pick up the additional exposures. These primarily surround your own costs and notification expenses involved in a data breach/loss.

There is no right solution – some argue that you should 'buy what you can afford'. In other cases, your customer will specify a minimum level of cover. In any event, you should assess the greatest loss that might result from a mistake on any particular project/contract. Ultimately, no one will take on your responsibility to ensure you have enough cover but you should carefully review this area with your broker.

Professional Indemnity is underwritten on what is known as a ‘claims made basis’. This means that the policy will only provide cover for incidents that are discovered and notified to the insurers during the period of insurance. Your policy will provide cover for advice given in previous years, often limited to a given date. It is important to note that if you want to continue with the protection PI cover provides, you need to keep renewing cover or buy 'Run Off' cover.

There is no single answer to this, but it’s wise to talk to your adviser and discuss any contractual liabilities you may face. Beware signing standard contracts without checking whether they increase your insurance exposure. For example, many US contracts will include a 'hold harmless' clause, which would prevent you or your insurers from recovering against a negligent party.

Often, the best form of protection is not insurance, but making sure you have strong terms of business that limit your possible exposure. Where you do make a mistake which affects a client, the best policies will intervene quickly to minimise the loss and help you retain the client.

The rapid growth of the internet means that geography is much less important these days. Often data will be stored outside the UK, and your customers may themselves be abroad.

If they decide to sue you, they may well do so in their own country making use of local laws. It’s not necessarily obvious that you are trading abroad. For example:

• The provider of a UK online news service had US subscribers, who claimed the site infringed local trademarks
• An online TV service was the subject of an injunction in India in relation to content
• An online auction site fell foul of French law when featuring some military memorabilia
• The operator of a website for an Austrian nightclub was sued when a customer was injured at the club.

As a general rule, if your customer may be abroad make sure you have 'worldwide jurisdiction' under your policies.