Professional Indemnity for IT Professionals
Cover built for the real-world risks of IT work, from coding errors to contract disputes, so brokers can keep clients online and protected.
When a small release creates a big problem.
A Sydney software developer pushes a minor feature update. An integration with a payment gateway fails and the client’s checkout goes offline. The client threatens a claim for lost revenue and the broker’s phone lights up.
Deadlines slip, emails stack up, and everyone debates who did what. The question becomes simple. What responds to the alleged professional error, pays defence costs, and helps the client get back on track.
That is where Hutch steps in. Our Combined Liability policy pairs a civil liability PI wording designed for professional services with optional Public Liability, so brokers can place clear, fit-for-purpose cover. Costs and Expenses are payable in addition to the limit unless your Schedule says otherwise, and we can advance reasonable defence costs while indemnity is assessed.
Get a quote on Ebix Sunrise Exchange or SCTP
Coverage at a glance
Core sections
Section 1: Professional Indemnity (PI) claims-made and notified.
Section 2: Public Liability (PL) occurrence based. Optional for most IT occupations.
Section 3: Cyber available on Sunrise as a separate section. On SCTP, Cyber is provided via an endorsement applied to all quotes (aggregate limit as shown on the Schedule).
Costs and Expenses: Payable in addition to the Indemnity Limit unless the Schedule states inclusive. We may advance reasonable defence costs prior to final indemnity determination.
Who it’s for
IT professional services firms delivering advice, design, configuration and integration of software and systems. This includes software developers, implementation and integration consultants, solution architects, business analysts and testing or QA providers. Engagements are primarily office or remote based with no on-tools installation by the insured.
Optional extensions
Fidelity: cover for loss caused by dishonest or fraudulent acts of an employee, up to $500,000, subject to conditions and exclusions.
Sudden and Accidental Pollution: civil liability for unintended pollution arising from the professional business during the policy period, up to the Section 1 limit (aggregate sub-limit, conditions and exclusions apply).
Previous Business: provides cover for professional services undertaken before the policy inception date, when performed by a director, partner or principal of the insured under a prior business of the same nature, as disclosed and noted on the Schedule.
Extensions apply to Section 1 – Professional Indemnity and only when shown on the Schedule. Availability and limits are subject to underwriting. Always refer to the Policy Wording and Schedule for full terms, sub-limits, deductibles, conditions and exclusions.
Also see: Financial Services Guide (FSG)
Key Covers
- Civil liability for professional services: claims-made and notified cover for alleged error, omission or breach in the conduct of the Professional Business.
- Defence Costs: paid in addition to the Indemnity Limit for covered claims (up to an amount equal to that Limit), unless the Schedule states inclusive. We may advance reasonable defence costs subject to policy conditions.
- Reinstatement of limit: available where stated on the Schedule (aggregate conditions apply).
- Loss of Documents: costs and expenses for loss, damage or destruction of Documents (including electronic records) in connection with professional services, subject to sub-limits and definitions.
- Investigation and Inquiry Costs: reasonable costs to respond to certain official investigations relating to the Professional Business, subject to sub-limits and deductibles.
- Consumer law: civil liability for misleading or deceptive conduct or similar under applicable fair-trading law, subject to policy terms.
- Vicarious liability for contractors: liability the Insured incurs for work performed on the Insured’s behalf by consultants or subcontractors. Contractors are not insured parties under this policy.
- Public Liability (Section 2): legal liability for third-party bodily injury or property damage arising from an occurrence in connection with the business, included where shown on the Schedule.
- Fidelity (optional): cover for loss caused by dishonest or fraudulent acts of an employee, available by endorsement and limit selection.
- Cyber (Section 3): $25,000 aggregate limit. Covers a claim for a Data Security Breach and a claim for Client Network Infection, plus first-party loss of funds due to cyber crime. Claims-made and notified. The general “Cyber Loss” exclusion does not apply to this section.
Summary only. Always refer to the Policy Wording and Schedule for full terms, limits, sub-limits, deductibles, conditions and exclusions.
Appetite & Fit
(quick guide)
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Examples only. Subject to underwriting. Always refer to the current Policy Wording for terms, conditions, limits and exclusions.
Broker FAQs
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Is this wording different from a generic liability policy?
Yes. The Professional Indemnity section is civil liability based for professional services, with costs in addition unless the Schedule says otherwise. Public Liability is a separate section.
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Are intellectual property disputes covered?
Yes - but only for claims arising from an unintentional breach, or infringement. Any other claim is excluded.
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What is considered Manual Work for IT Professionals?
In this policy, Manual Work means manual or physical labour. It includes the use of tools or machinery and on-site physical tasks.
Examples of Manual Work for IT Professionals:
- Running or terminating network cabling on site.
- Drilling, mounting, or wall-fixing equipment such as racks, screens or access points.
- Lifting, transporting, and installing servers, switches or other hardware.
- On-site physical repair, replacement or assembly of hardware.
- Operating power tools or other machinery during install or fit-out.
Not Manual Work: Professional IT services such as design, specification, testing, data processing or management, project management, analysis, maintenance or hosting of data.
Under the Public Liability section, liability arising from Manual Work, or from supervising others who perform Manual Work, is excluded. If your client undertakes any physical installation work in conjunction with professional services, don't hesitate to get in touch with us before providing a quotation so we can advise on the placement.
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Do you cover US/Canada work or claims?
No. US/Canada jurisdiction and acts within those territories are excluded.
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What isn’t covered?
Every policy has exclusions. The following are selected examples only. Always check the Policy Wording and Schedule for full terms, limits, sub-limits, deductibles, conditions and exclusions.
- Financial or legal advice services.
- Use of illegal or unlicensed programs.
- Insolvency of the insured.
- Intellectual property infringement, except to the extent allowed under the policy’s Intellectual Property Rights additional benefit.
- Known claims or circumstances, or conduct before the retroactive date.
- Product liability exposures under the PI section.
- Acts or suits in the United States or Canada, or enforcement of related judgments.
- Manual work exposures under Public Liability.
- Pollution, except to the extent of any stated sudden and accidental carve-out.
- Nuclear risks, war, terrorism and war-related cyber operations.
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What documentation do I need to quote?
Recent resume or company profile, claims history, service description and typical contracts. Higher limits or complex terms may require additional underwriting information consistent with the proposal.
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How do I place this?
- Review the docs – Download Policy Wording (HCL3IT).
- Quote – Use Ebix Sunrise Exchange or SCTP.
- Bind - Bind and Close instantly.
- Issue Documents – Issue automatically generated Schedule and CoC; and share with your client.
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How do I lodge a claim?
Notify Hutch Claims as soon as practicable and provide relevant documents (contract, scope, correspondence). Our in-house claims team will confirm next steps.
Why brokers choose Hutch
- Broker-centred process and clear sections (PI, PL, Cyber).
- Fast quote pathways within Ebix Sunrise Exchange and SCTP. Enter, quote and bind within minutes. No double-keying; no closings; even invoices are auto-populated.
- Service. If your submission has triggered a referral, we usually respond within one business day. Have a question? Our Financial Lines Underwriters are always happy to help. They are passionate about Professional Indemnity and enjoy every opportunity to share their knowledge.
- Wording designed for IT professional services, with benefits Costs and Expenses in addition, smart extensions.
Downloads
Policy Documents
Underwriter Spotlight
Ross Chambers
Head of Financial Lines
Ross brings a rich work history and a passion for insurance intricacies. Armed with a double degree in Economics and Finance, Ross began his career in a graduate program, where he gained exposure to diverse insurance facets, sparking his industry interest. Transitioning to underwriting in 2014, he specialises in professional indemnity insurance, relishing its complexity.
This page is intended for licensed insurance brokers. General advice only. It does not take into account your client’s objectives, financial situation or needs. Coverage is subject to the terms, conditions, limits and exclusions in the Policy Wording. Available via Ebix Sunrise Exchange and SCTP. Hutch follows the General Insurance Code of Practice and ASIC RG 234 guidance in our communications.