Specialist technology insurance

Technology Professional Indemnity Insurance

Technology PI concerns defined professional services, design or software errors that may cause a customer financial loss. Mercantile helps Australian technology businesses prepare clear underwriting information and review the interaction between products liability, technology professional indemnity, cyber and other relevant policies.

What makes this risk different?

Underwriters need to understand the product or service, who relies on it and what could happen if it fails. For this activity, describe service agreements, statements of work, deliverables, reliance, subcontractors, service levels, claims history, retroactive date and notification provisions. Separate your own design and delivery responsibilities from those of component suppliers, installers, customers and subcontractors. Give the insurer a realistic account of maximum potential loss and any past claims or incidents.

Insurance questions to review

• Public and products liability: alleged third-party injury or property damage from operations, products and completed work, subject to exclusions and declared activities.
• Technology professional indemnity: defined professional services, software and advice exposures, often on a claims-made basis with notification and retroactive-date conditions.
• Cyber: incident response, privacy and covered network events, which may differ from a product defect or implementation error.
• Other cover: recall expense, property, stock, transit, management liability or crime where the actual operation warrants it.

Check limits, excesses, aggregate limits, exclusions, territorial and jurisdiction clauses and any contractually required insured parties. No item listed here is automatically included.

Illustrative exposure

Hypothetical example: An implementation mistake disrupts a client’s operations without physical damage. The definition of professional services and contractual liability terms matter. This example describes an exposure only; a claim outcome depends on the facts and policy.

Professional services and contract review

Describe consulting, software development, integration, implementation, support and advice as separate services, with revenue by activity and geography. Provide representative statements of work, service levels and customer indemnities. Check who approves specifications and acceptance tests, and whether subcontractors perform any material delivery.

Technology PI is commonly written on a claims-made basis. Confirm the retroactive date, notification requirements and continuity before replacing an existing policy. Pure economic loss, contractual penalties, IP allegations and bodily injury or property damage may be treated differently. A contract’s liability cap does not necessarily cap every claim or match the insurance available.

What to send for a quote

Provide a concise business and product description, turnover split by activity and country, principal contracts, customer industries, manufacturing and supplier arrangements, testing and quality processes, existing schedules and claims history. Where relevant, include technical documentation through a suitable secure follow-up channel.

Frequently asked question

Does a service-level credit fall within PI?

Contractual penalties and agreed credits need specific wording review.

For an enquiry about your services and contracts, see our technology PI quote page. Related reading: software and SaaS and the technology insurance guide.