Insurance for IT & Communications Companies

• How does the insured manage their contracts?
• How does the business cap their liability, and do they exclude consequential losses in their standard terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?
• What is the intended function of the insured’s software/hardware, and what would happen in the event it failed?
• Who are the insured’s customers?

Please provide details of the insured’s three largest contracts and a copy of their standard terms and conditions.

We need to understand the type of work placements the business is undertaking and who is ultimately responsible for them.

Vicarious liability is a large exposure so please tell us in detail:

• What percentage of staff is placed on a permanent vs. short-term basis?
• Where are staff working, and who are the insured’s customers?
• Is there any manual work?
• Does the business recommend placements, and are they involved in the interview process?
• What background checks are in place to ensure that placements are suitable for the hiring company?
• Is the hirer responsible for setting and checking the placement’s work?

Please provide copies of the insured’s contracts to help us assess who is responsible for staff whilst on placements. This includes contracts between the recruitment company and the contractor and the recruitment company and their clients.

This trade can include copying files from one computer to another and systems that enable peer-to-peer, file swapping or digital copying of music, movies, books or other similar media content. This does not include companies that are copying information for storage purposes.

We need to understand the insured’s customers and what controls and data management procedures the business has in place. Please tell us in detail:

• What is the type of content the insured is involved with?
• Who are the business’s customers?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s three largest contracts and a copy of the terms and conditions to help us review details.

This could include accounting, claim management or underwriting software. We are not in the market for live trading platforms handling stocks and shares.

Please explain to us:

• What is the software designed to do and for whom?
• Is the software bespoke or off the shelf?
• What testing and sign-off procedures are in place?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s three largest contracts and a copy of the terms and conditions to help us review the finer details.

This can include CAD/CAM software and predictive modelling solutions. This does not include financial modelling, however. We need to understand how the software works and, if it does not work as intended, what the impact will be.

Please tell us in detail:

• Who is the insured’s customer base?
• In what industries is the software used?
• Is the software time-critical, such as mapping tools used in emergency responses (communications, dispatch, routing, etc.)?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s three largest contracts and a copy of the terms and conditions to help us review the finer details.

This trade includes real estate-related software such as real estate listing software or loan origination software.

Please explain to us:

• What is the software intended to do?
• Does the software cover residential and commercial customers?
• Does the software include valuation or conveyancing services?
• Is the client involved in loan originations, sales or appraisal services?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s three largest contracts and a copy of the terms and conditions to help us review the finer details.

For management consultants that provide any type of business valuation services or corporate turnaround services, please refer to our Bond & Speciality team.

This trade includes companies whose primary business is providing software and systems to enable or engage in behavioural marketing or targeted advertising for others.

Please explain to us:

• What is the software intended to do?
• Is the insured creating or distributing advertising content?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s largest three contracts and a copy of the terms and conditions to help us review the finer details.

For businesses who are primarily engaged in creating or distributing advertising content for others, or providing marketing or brand development, please refer to our Bond & Speciality team.

This trade includes software developers of non-violent or education games.

Please explain to us:

• Are the games sold online? (This would be covered under our professional indemnity [PI] section as the product is intangible.)
• A list of historic games.
• Are there any tangible products and, if so, what are they?
• Is the business involved in developing sporting games?
• What are the insured’s IP procedures?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s three largest contracts and a copy of the terms and conditions to help us review the finer details.

It is unlikely we would be able to provide a quotation for businesses developing games involving violence, real money gambling or tangible prizes.

This trade is extremely wide and varied and would include creators of digital platforms that enable large-scale efficient marketplaces to facilitate connections between providers (creators of the goods or service offered through the platform) and consumers (buyers or users of the goods or service).

We need to understand how the platform works and who the users are.

Platform categories include:

• Food (food delivery, shared food, shared food prep)
• Municipal (council sponsored platforms)
• Goods (pre-owned, loaners, made to order/bespoke, auction sites)
• Shared interests (hobbyist)
• Learning (book sharing, instruction)
• Services (personal, professional, health/wellness/beauty)
• Logistics (delivery, shipping, storage)
• Space (personal, workspace)
• Mobility (transportation network companies, rides, support, valet)
• Vehicle sharing (boats, bikes, vehicles)
• Money (crowdfunding)

Our appetite will depend on the type of platform.

Please explain to us:

• How is the client hosting the platform? Do they use third-party data centres or their own servers?
• How do they ensure uptime?
• How does the insured manage their contracts? What is their liability capped at, and do they exclude consequential losses in their terms and conditions?
• What cyber controls are in place to ensure the insured does not encounter a breach of security?

Please provide details of the insured’s largest three contracts and a copy of the terms and conditions to help us review the finer details.