Question 1

1 Why do Internet of Things companies need insurance?

Accepted Answer

Reliance and litigation. Clients put more reliance on your software and services than ever. Secondly the UK is more litigious than it has ever been, following our peers from across the pond. Insurance is designed to safeguard your business if things go wrong. It will provide legal protection and also compensation to your clients if it is judged you are liable for any errors or downtime. If designed and purchased correctly it will protect your balance sheet.

Question 2

1 Why do technology companies need insurance?

Accepted Answer

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 3

1Why do software companies need insurance?

Accepted Answer

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 4

1Why do Software as a Service companies need insurance?

Accepted Answer

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 5

1Why do software developers need insurance?

Accepted Answer

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 6

1Why do games developers need insurance?

Accepted Answer

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 7

1Why do AI companies need insurance?

Accepted Answer

You need cover because emerging technology comes with emerging risks and the legal landscape surrounding AI companies is still in its infancy. This brings opportunity and competition but also litigation.
With new technologies there are always growing pains, increasing the chances of complaints by clients and legal disputes.
Our tailored insurance packages provide AI companies with essential legal protection and support if things go wrong.

Question 8

1Why do web designer or developers need insurance?

Accepted Answer

You need cover because clients rely on their websites and your web design more than ever, and the UK is becoming more litigious.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.
The right insurance protects you and your business.

Question 9

1Why do telecommunications companies need insurance?

Accepted Answer

Reliance and litigation. Clients put more reliance on your software and services than ever. Secondly the UK is more litigious than it has ever been, following our peers from across the pond. Insurance is designed to safeguard your business if things go wrong. It will provide legal protection and also compensation to your clients if it is judged you are liable for any errors or downtime. If designed and purchased correctly it will protect your balance sheet.

Question 10

1Why do IT contractors need insurance?

Accepted Answer

You need cover because clients rely on their contractors more than ever, and the UK is becoming more litigious.
Increasingly, businesses are filling senior roles that come with high levels of responsibility, like heads of IT and information security with contractors and when things go wrong, it’s easier to point the finger at the external contractor than a company employee or director.
Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for negligence. If you operate as a limited company it will protect your balance sheet and if you’re a sole trader it’s even more important because you could be held personally responsible.

Question 11

1Does my business need cyber insurance?

Accepted Answer

Yes. If you use IT, store data or have any reliance on IT or technology, you need cyber insurance to protect your business.

Question 12

2What insurance do a telecommunications companies need?

Accepted Answer

Professional indemnity insurance – We would argue this is crucial. It will provide protection for claims against you by clients and in some cases other third parties. It will also cover the legal costs associated with defending your telecommunications companies in respect of those claims.
 	Cyber insurance – Whilst cyber insurance is the buzz word, it’s importance should not be underestimated. If some of the world’s largest companies can be hacked, sadly the ‘it will never happen to us’ approach is no longer valid. As an telecommunications company you will know IT security better than most, but as we know, our biggest risk is our people/employees, and it only take a small oversight for your systems to be compromised. Having access to specialist support in the event of a cyber-attack from companies that handle such attacks every day can be crucial to getting your business back on its feet with haste.
 	Public and product liability – covers physical injury and damage, which arguably is unlikely for clerical businesses, but can be added to packages with ease and at a low cost.
 	Employers’ liability – this covers injury claims from employees, it’s legal requirement in the UK is you have employees. Again, easy to add and typically low cost.
 	Computers, laptops and office equipment - it’s easy to insure you IT assets from theft and destruction. The coverage for portable IT equipment can also be offered on a worldwide basis.
 	Directors’ and officers’ insurance – covers claims against directors or senior managers made in personal capacity. Particularly relevant if you have external investors who may attempt to hold company directors liable for failures within the business or a missed ROI targets.

Question 13

2What insurance does a Internet of Things companies need?

Accepted Answer

Professional indemnity insurance – We would argue this is crucial. It will provide protection for claims against you by clients and in some cases other third parties. It will also cover the legal costs associated with defending your Internet of Things companies in respect of those claims.
 	Cyber insurance – Whilst cyber insurance is the buzz word, it’s importance should not be underestimated. If some of the world’s largest companies can be hacked, sadly the ‘it will never happen to us’ approach is no longer valid. As an Internet of Things company you will know IT security better than most, but as we know, our biggest risk is our people/employees, and it only take a small oversight for your systems to be compromised. Having access to specialist support in the event of a cyber-attack from companies that handle such attacks every day can be crucial to getting your business back on its feet with haste.
 	Public and product liability – covers physical injury and damage, which arguably is unlikely for clerical businesses, but can be added to packages with ease and at a low cost
 	Employers’ liability – this covers injury claims from employees, it’s legal requirement in the UK is you have employees. Again, easy to add and typically low cost.
 	Computers, laptops and office equipment – it’s easy to insure you IT assets from theft and destruction. The coverage for portable IT equipment can also be offered on a worldwide basis.
 	Directors’ and officers’ insurance –covers claims against directors or senior managers made in personal capacity. Particularly relevant if you have external investors who may attempt to hold company directors liable for failures within the business or a missed ROI targets.

Question 14

2What insurance do technology companies need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 15

2What insurance do software companies need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 16

2What insurance do Software as a Service companies need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 17

2What insurance do software developers need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 18

2What insurance does a games developer need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 19

2What insurance does an AI company need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 20

2What insurance does a web designer or developer need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 21

2What insurance does an IT contractor need?

Accepted Answer

Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
 	Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis

Question 22

2What does cyber insurance cover?

Accepted Answer

Cyber insurance helps your business get back on track in the event of a cyber-attack.
Most importantly, you need a policy that provides incident response services, such as hands-on help and support from your cyber insurers.
A specialist package should also include:


 	IT forensics - Costs associated with IT forensics and investigations.
 	Data breach - Costs associated with a data breach, including legal costs and costs covering communications with affected data subjects.
 	Regulatory and legal – Legal advice for notifying appropriate legal authorities like the Information Commissioner’s Office or national crime agency.
 	Restoration – Costs associated with the re-build or restoration of your computer systems.
 	Extortion – Costs associated with communicating and negotiating with cyber criminals who may be attempting to extort your business.
 	Business interruption – Covers your lost revenue.
 	Crime – Costs covering traditional ‘cash’ losses, for example if you have been subject to funds transfer fraud or push payment fraud. This is often a policy extension.

Question 23

1. What insurance do venture capital companies need?

Accepted Answer

Insurance for this sector is usually purchased in a package or portfolio. This means the financial lines insurance form part of a single package with a single insurer. This is particularly common for small and medium-sized financial services companies, asset managers, financial institutions or venture capital companies.
The most common package combines professional indemnity, crime insurance and directors’ and officers’ insurance. Recently, some insurers have started to offer cyber insurance, and in some cases public and employers’ liability extensions.
We advise you get professional indemnity and directors’ and officers’ insurance as a minimum. In fact, depending on your Financial Conduct Authority (FCA) permissions, professional indemnity might be compulsory.
Depending on whether you handle client funds on your own platform, crime insurance might or might not add value. We can help advise you.
In recent years, we have seen an increase in claims, in part driven by social media and campaigns by some law firms, often referred to as ‘claims farmers’. These campaigns, previously focused on large investment providers, are now targeting companies of any size.

Question 24

3What are the most common claims against technology companies?

Accepted Answer

Breach of contract – Allegations software fails to meet the contractual provisions, including missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Question 25

3What are the most common claims against telecommunications companies?

Accepted Answer

The most common claims we see against telecommunications companies are related to:


 	Breach of contract – allegations the software fails to meet the contractual provisions, including matters such as missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – be it a cyber-attack on your own system or cyber-attack on the clients’ systems where they argue you are responsible for IT security.
 	Counter claims and tactical litigation – we are seeing an increase in claims made, which some may argue are tactical in nature or simply a symptom of the economic environment. If a business which is a client of yours cannot afford to pay their bills and/or is having cash flow difficulties, and alternative option to paying those bills may be to make unfounded allegations your telecommunications business has been negligent or failed to provide a service. This may be with the tactic of getting your business to write off the genuine invoices or reduce them.

Question 26

3What are the most common claims against Internet of Things companies?

Accepted Answer

The most common claims we see against Internet of Things companies are related to:


 	Breach of contract – allegations the software fails to meet the contractual provisions, including matters such as missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – be it a cyber-attack on your own system or cyber-attack on the clients’ systems where they argue you are responsible for IT security.
 	Counter claims and tactical litigation – we are seeing an increase in claims made, which some may argue are tactical in nature or simply a symptom of the economic environment. If a business which is a client of yours cannot afford to pay their bills and/or is having cash flow difficulties, and alternative option to paying those bills may be to make unfounded allegations your Internet of Things business has been negligent or failed to provide a service. This may be with the tactic of getting your business to write off the genuine invoices or reduce them.

Question 27

3What are the most common claims against software companies?

Accepted Answer

Breach of contract – Allegations software fails to meet the contractual provisions, including missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Question 28

3What are the most common claims against Software as a Service companies?

Accepted Answer

Breach of contract – Allegations software fails to meet the contractual provisions, including missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Question 29

3What are the most common claims against software developers?

Accepted Answer

Breach of contract – Allegations software fails to meet the contractual provisions, including missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Learn more from our post: The real risk facing software companies.

Question 30

3What are the most common claims against games developers?

Accepted Answer

This depends on how your business is set up.
Contract games development
Studios developing games for third parties on contract typically see claims relating to:


 	Breach of contract – Failure to meet project milestones and deadlines, often related to what is known as ‘project creep’, where clients gradually move project requirements or complicate the project, making it difficult for the developer to meet the initial deadlines.
 	Intellectual property (IP) and copyright – Confusion between the client and developer as to who is responsible for IP or copyright clearances resulting in missed licences.
 	Traditional negligence - Allegations the game fails to meet the required and expected standards.

In-house games development and publishing
For anyone publishing in-house, the main risk is always IP and copyright relating to failure to seek appropriate licences on artwork, branding, musical compositions and other graphic material.
The more serious IP claims stem from competitors, often larger companies, making allegations your game is a replica of their title, sometimes with the intention of stifling competition and preventing smaller studios from gaining a foothold in the market.

Question 31

3What are the most common claims against AI companies?

Accepted Answer

We know your industry faces similar risks to software companies and other emerging technologies. That means:


 	Traditional negligence, non-compliance and non-performance claims - Allegations by your client that the AI technology designed is not returning the correct or accurate results.
 	Breach of contract – Allegations the AI software fails to meet the contractual provisions, including matters such as missed deadlines and failure to meet uptime requirements.
 	Breach of intellectual property (IP) – Allegations you have copied the code or IP of another firm in the design of your AI technology.
 	Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Question 32

3What are the most common claims against web designers or web developers?

Accepted Answer

Breach of contract – Allegations the website fails to meet the contractual provisions, including matters such as missed deadlines, non-compliance, non-performance and failure to meet uptime requirements.
 	Cyber-attacks – Incidents affecting either your website or your client’s (where you are liable).
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.
 	AdWords – Whilst not always within the services provided by web designers and web developers, a common source of claims relates to Google AdWords, where clients allege inadequate returns on investment or overspend.

Watch this video where we visit some of the claims we have seen made under a web designers professional indemnity policy.

Question 33

3What are the most common claims against IT contractors?

Accepted Answer

The most common claims we see against IT contractors are:


 	Traditional negligence – When something goes wrong it’s easy to blame the external IT contractor, especially if it was a contractual requirement that they have insurance.
 	Breach of contract – Allegations the website fails to meet the contractual provisions, including matters such as missed deadlines, non-compliance or non-performance.
 	Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

Question 34

3What are the most common cyber insurance claims?

Accepted Answer

Mostly, cyber insurance claims relate to human error, for instance an employee or director making a mistake, clicking on a harmful link or downloading a harmful file.
The most common claims are:


 	Ransomware or malware – A hacker gains access to your systems and sensitive data which they might encrypt before demanding a ransom to decrypt it.
 	Phishing – A fraudulent email deceives an employee or director into providing sensitive business information or perhaps even passwords. Often these types of emails will attempt to deceive a business into making a payment to the criminal’s bank account. Accounts departments are particularly vulnerable to this type of crime and this is known as funds transfers fraud or push payment fraud (PPF).
 	Business email compromise – A cybercriminal gains access to your business email account which they can potentially use to monitor your business communications and payments. They intervene and send emails on your behalf without your knowledge in an attempt to get your business or third parties to pay funds to their criminal account. They can continue undetected for months without your knowledge. Sometimes they will change passwords, blocking your access to your own email account.
 	Traditional data breaches and associated legal costs – A cyber event which results in the loss of confidential data.

Question 35

4What is excluded?

Accepted Answer

If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.
 	Most policies will exclude any claims related to patents. In the software sector, you may not need it, but we can explore additional coverage if you do.
 	Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.
 	Disputes which are purely commercial in nature and not linked to your supply or service provision, such as a commercial dispute with a supplier may be excluded. Disputes with clients are usually covered, especially if they allege your business has been negligent or breached a contract.

Question 36

4What is excluded?

Accepted Answer

If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.
 	Most insurers will avoid liability for in-game purchases and loot box game mechanisms because there tends to be a high propensity for consumers to complain or request refunds (particularly if an in-game purchase was made by a minor). Instead, insurers tend to expect companies to resolve these low-value disputes themselves.
 	Most policies will exclude any claims related to patents. In the software sector, you may not need it, but we can explore additional coverage if you need do. Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.

Question 37

4What is excluded?

Accepted Answer

If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.
 	Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.
 	Disputes which are purely commercial in nature and not linked to your supply or service provision, such as a commercial dispute with a supplier, may be excluded. Disputes with clients are usually covered, especially if they allege your business has been negligent or breached a contract.

Question 38

4What is excluded?

Accepted Answer

If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.

Question 39

4What is excluded?

Accepted Answer

Most policies will exclude claims in the USA and Canada, so be mindful as to whether you permit US or Canadian clients, or sign contracts that are subject to USA or Canadian law. Some insurers will also restrict cover the UK claims only. Policies can typically be easily extended to include USA and Canadian courts protection for an additional premium.
 	Patents – it unusual for software to be subject to patents, but mindful that patent related claims from third parties are often excluded.
 	Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.
 	Commercial disputes – disputes which are purely commercial in nature and not linked to your supply or service provision. For example, a commercial dispute with a supplier. Disputes with client are usually covered especially if they allege your business has been negligent or breached a contract

Question 40

4What is excluded?

Accepted Answer

Most policies will exclude claims in the USA and Canada, so be mindful as to whether you permit US or Canadian clients, or sign contracts that are subject to USA or Canadian law. Some insurers will also restrict cover the UK claims only. Policies can typically be easily extended to include USA and Canadian courts protection for an additional premium.
 	Patents – it unusual for software to be subject to patents, but mindful that patent related claims from third parties are often excluded.
 	Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.
 	Commercial disputes – disputes which are purely commercial in nature and not linked to your supply or service provision. For example, a commercial dispute with a supplier. Disputes with client are usually covered especially if they allege your business has been negligent or breached a contract

Question 41

4What is excluded?

Accepted Answer

Despite competition amongst insurers, which has led to very broad products, certain types of cover often remain excluded:


 	Fines and penalties – Most policies say they cover fines and penalties, but only “where insurable”. If local legislation states such fines are not insurable then the cyber insurance may assist with the legal representation related to the fine but will not cover the value of the fine itself.
 	Cyber war – Many insurers will exclude claims related to attacks on governments or states, known as cyber warfare. Insurers should only rely on such as an exclusion if it is evident the cyber-attack affecting your business is an attack on the state more holistically and intended to bring down the entire UK infrastructure.
 	Retro-date – Some insurers will apply a retro-active date, which means complaints or claims related to work prior to that date are excluded.
 	Non-cyber event damage to system – Damage or business outages which are not related to a cyber event, for instance if a software update causes you to be unable to access your own system, resulting in business downtime.
 	Time excess – Most policies will have a time excess, usually around eight to 12 hours. Whilst insurers will want to be immediately involved in incident response to mitigate losses, they usually exclude these first hours of lost trading.

Question 42

2. What is excluded from insurance for venture capital companies

Accepted Answer

This can be complicated but insurers, and brokers, should be transparent about exclusions.
We will be able to advise but it’s worth knowing that:


 	Some insurers will exclude unregulated investment products or offshore investments.
 	Whilst not usually relevant to financial services unless you have an independent financial adviser or advisory department, in recent years insurers have been very concerned with advice on defined benefit pension transfers. Most policies will exclude claims in the USA and Canada and some insurers will restrict to UK claims only. More obvious exclusions are fraud, unless the fraud relates to an employee acting without consent or knowledge of directors and managers.
 	Many insurers will ‘aggregate’ coverage meaning insurers will apply a policy cap to all claims. This can restrict cover significantly. For example, you may purchase £1,000,000 professional indemnity, £1,000,000 crime and £1,000,000 directors’ and officers’ insurance, but the insurers will apply an overarching policy limit of £1,000,000 meaning the total for all such claims will be £1,000,000 throughout the policy period. The result is £1,000,000 professional indemnity insurance can exhaust the cover, leaving directors with no cover. Sometimes, you’ll only be offered aggregated cover but with separate policy limits for each module (professional indemnity, crime and directors’ and officers’ insurance). If this is affordable it’s an approach that should be carefully considered.

Question 43

5Who can we cover?

Accepted Answer

We provide cover for:


 	Software developers, including games and apps developers.
 	Software suppliers, including installation and configuration.
 	Software as a Service (SaaS).
 	Software consultants and systems integrators.
 	Software implementation and project management, and/or provision of contract staff.

Question 44

5Who can we cover?

Accepted Answer

We cover:


 	Developers self-publishing games for commercial release.
 	Contract games development.
 	Games released on any mainstream platform, including but not limited to PC, Xbox and Sony PlayStation.
 	Games released on mobile only, via Google Play and Apple App Store.

Question 45

5What type of AI companies can we cover?

Accepted Answer

We can cover any business involved with AI technology, large or small and regardless of specialism and we work with insurers that will consider AI technology related to higher-risk industries like health and financial services too.

Question 46

5Who can we cover?

Accepted Answer

We cover any web design business, including those responsible for hosting, and other related marketing activities like social media management and Google AdWords.

Question 47

5Who can we cover?

Accepted Answer

Here’s a list of some of the software related business activities that can be covered under the software company insurance that we arrange:


 	software developers including games and apps developers
 	software suppliers, including installation and configuration
 	SAAS – Software as a Service
 	Software consultants and systems integrators
 	Software implementation and project management and/or provision of contract staff

Question 48

5Who can we cover?

Accepted Answer

We cover any IT contractor or IT contracting business, including those working in higher-risk sectors like financial services, IT security or handling American clients.

Question 49

5Who can we provide cyber insurance for?

Accepted Answer

We can provide cyber insurance for any business, large or small.

Question 50

6What is professional indemnity?

Accepted Answer

Professional indemnity covers you for allegations of mistakes and negligence.
It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.

Question 51

6What is professional indemnity?

Accepted Answer

Professional indemnity covers you for allegations of mistakes and negligence.
It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
You’ll need a specialist technology product that covers you for things like breaches of infringement of intellectual property rights including copyright infringement, or any misappropriation of musical compositions, graphic material, or artwork.

Question 52

6What is professional indemnity?

Accepted Answer

Professional indemnity covers you for allegations of mistakes and errors..
In software that is usually allegations related to software failures/glitches, server downtime, breach of warranties/uptime agreements, or breach of contract. These risks will only be covered by a specialist technology product.
Some insurers provide negligence only policies, which will often exclude the key risks software companies face.
A specialist technology product will also include breach of confidentiality and breach of intellectual property, which can protect from claims from third parties (not just your own clients).

Question 53

6What is professional indemnity?

Accepted Answer

Professional indemnity covers you for allegations of mistakes and negligence.
It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
You’ll need a specialist technology product that covers you for things like allegations related to software failures, server downtime, project failings or breach of contract.
Beware of negligence-only policies, which will often exclude these key risks.

Question 54

6How much cover do we need?

Accepted Answer

There’s no simple answer because a judgement will be dependent on a number of factors, such as the size of your business, its business activities, the level of IT security and sensitivity of the data you hold.
Our cyber insurance partners can provide sample loss scenario reports, offering guidance on the value of different types of cyber claims for a business of your size and industry. These are a good starting point for negotiations around how much cover you need.
Some cyber insurance is better than none, so if budgets are tight at least consider entry level cover.

Question 55

7Do I need professional indemnity?

Accepted Answer

We advise you have professional indemnity. This covers you for allegations of mistakes and provides compensation where you are liable due to professional negligence.
It usually covers associated defence or legal costs too which is vital when you are working with companies bigger, and more able to litigate, than yours. It will cover you for claims from clients and third parties.

Question 56

7How much does cyber insurance cost?

Accepted Answer

All our quotes are personalised, and the premium is typically linked to the size of the business, your IT security and your precise business activities. We find that in most cases, our policies are incredibly competitive.

Question 57

8How much does insurance cost for games developers?

Accepted Answer

All our quotes are personalised, and the premium is typically linked to the size of the business and your precise business activities. We find that in most cases, our policies are incredibly competitive.

Question 58

3. Why do I need to understand the importance of the policy excess for venture capital insurance?

Accepted Answer

It is crucial that you understand your policy excess and how it can be applied in practice because excesses for this sector can be very high, with some starting at £25,000.
It can be complicated too but we can advise you.
Some excesses will apply to “each and every claimant”. This means that if your investment portfolio suffers a sudden crash due to unforeseen external forces and you receive several claims from investors simultaneously, your excess will apply to each claimant. If you have a £25,000 excess and receive five investors complaints, that would result in a total policy excess of £125,000 for the business.
Other policies will state that claims related to the “same originating cause” are deemed to be one claim and one excess – a more favourable approach for financial services

Question 59

1Which broadcasters can we cover?

Accepted Answer

We can provide cover for anyone involved in broadcasting.
A broadcaster could be a large national or multinational TV broadcasting company; an individual journalist, commentator or reporter; and it can apply to local, national or international radio as well as TV.
No matter what sort of broadcaster you are, we can provide a tailored insurance package that protects you and your business.

Question 60

2What insurance does a broadcaster need?

Accepted Answer

You’ll need a tailored package that includes:


 	Professional indemnity insurance - We suggest you have professional indemnity. This covers you for allegations of mistakes and provides compensation where you are liable due to professional negligence. It usually covers associated defence or legal costs too which is vital when you are working with companies bigger, and more able to litigate, than yours. It will cover you for claims from clients and third parties.
 	Cyber insurance - Cyber criminals are acutely aware that advertising agencies have access to sensitive commercial data which they can exploit. You’ll need cover if they gain access to your systems.
 	Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
 	Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
 	Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
 	Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

Question 61

3What does broadcasters’ professional indemnity and errors and omissions insurance cover?

Accepted Answer

The broadcasting of any content, regardless of the topic, has an element of risk.
In some cases, the genre of the content may be very low risk or un-contentious, but that doesn’t mean a person or company won’t raise a grievance.
The primary risk in broadcasting is defamation, and what is defined as slander.
The risks associated with live reporting and more contentious content, usually associated with investigative journalism or topics of a religious, political of commercially-sensitive nature, carry an increased defamation risk. Defamation claims, even those entirely unfounded can result in expensive legal costs. Our publishers’ insurance provides a legal defence for your business and helps with the costs of putting things right, if you are liable.
The right insurance protects your business, its reputation and balance sheet.

Question 62

4What is excluded under broadcaster professional indemnity and errors and omissions insurance?

Accepted Answer

If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.
 	If you are involved with advertising production, some policies will exclude work away for the office unless you buy an extension.
 	Most media policies will exclude any claims related to patents. We can explore additional coverage if you need it.
 	Some insurers will apply a retro-active date, which means complaints or claims related to work prior to that date are excluded.
 	Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.
 	Disputes which are purely commercial in nature and not linked to your supply or service provision, such as a commercial dispute with a supplier, may be excluded. Disputes with clients are usually covered, especially if they allege your business has been negligent or breached a contract.

Question 63

5How much professional indemnity and errors and omissions insurance does a broadcaster need?

Accepted Answer

There’s no simple answer because a judgement will be dependent on a number of factors, including:


 	The gross revenue of the business.
 	The nature of the content published.
 	Previous litigation.
 	The circulation of the content, both in terms of geographical reach and volume.
 	The presence of available indemnities with other companies such as news aggregators.

Question 64

1Why do marketing and media companies need insurance?

Accepted Answer

You work with clients on their brand and media presence in a fast-paced environment where publicity, good or bad, can go viral. You need insurance that protects and defends you because it’s easy for allegations to be made when things go wrong.
Our business insurance provides a legal defence for your business and helps cover the costs of putting things right, if you are liable.
The right insurance will protect your business, its reputation and balance sheet.

info@whinneyinsurance.co.uk

0208 659 5038

0208 659 5038

info@whinneyinsurance.co.uk

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Insurance for Mortgage Brokers

Mortage Broker insurance with a difference. We offer unique and specialist claims handling, with our own in-house compliance experts.

What you need to know about insurance for mortgage brokers

Frequently Asked Questions

Mortgage Brokers

What insurance does a mortgage broker need?

What is the minimum level of insurance for mortgage brokers?

What is professional indemnity?

What is excluded?

Who can we cover?

Why do I need to understand the importance of policy excess for mortgage brokers?

elements that can be included in your mortgage broker insurance package

Professional indemnity for mortgage brokers

Directors’ and officers’ insurance for mortgage brokers

Cyber Insurance for mortgage brokers

Crime insurance for mortgage brokers

Office insurance for mortgage brokers

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