NuStar Insurance Agency Blog

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Professional Liability for IT services &web developers

Did you know that General Liability is a premise liability coverage? Did you also know that general liability provides no coverage for what IT service companies and web developers actually do? The answer you are looking for is Professional Liability coverage which does cover potential mistakes you could make while working on a customers computer network or system. Back in February of 2010 the government put in place heavy fines for improper notification to customers in the event of a hacker getting your system and breaching customers data. You have 30 to notify all your customers if your system and their information has been breached. Add up how many customers you have then the cost (postage) of notification, then add in the extra cost of having your people do all the work and being available for all the customer calls after they recieve notification. Bottom line; its expensive and some companies include coverage for this under professional liability.