SWG PL – IT Technology

Apr 2020

Since reporting data breaches became mandatory in Canada two years ago, studies have reported an increasing number of incidents, both large corporations and small- and medium-sized businesses year after year.

A 2019 report from the Office of the Privacy Commission of Canada shows that while over half (58%) of incidents came from unauthorized access, a significant portion of the breaches were accidental disclosure. (1) The same study found that one in four reported incidents of breaches resulting from accidental disclosure had involved social engineering attacks such as phishing and impersonation. (1)

As careful as an organization might be, there is always the possibility that simple, commonplace errors – such as an email containing personal information sent to the wrong address, or a failure to BCC a list of recipients – can put the company at risk of a data breach.

SWG PL – IT/Technology Liability insurance is a packaged E&O and CGL policy providing coverage for the multitude of exposures faced by technology companies. Its tailored E&O covers a broad range of IT risks for small to large sized firms operating in various disciplines, including programming, IT consultancy, IT project management, network support services, website design, and more.

Other Liability Issues in IT/Technology:

SWG PL for the IT/Technology market protects consultants, web designers, firms, service providers, and a host of other tech professionals from the liability risks associated with their business. Even if the insured is not at fault, their client may still accuse them of an error or oversight and take legal action to recover any resulting profit losses.

One of the biggest risks associated with this market is third-party cyber liability. For example, if an IT consultant recommended insecure software, and that resulted in a cyber breach, then that consultant could be faced with a lawsuit for failing to provide protection.

Following are some other common exposures covered by this policy:

  • Professional errors and oversights: Human mistakes at a web hosting company can lead to website downtime, slow loading times, and HTTP errors. Clients could take legal action for any business interruption or lost clients.
  • Failure to deliver promised services: Missed deadlines, project delays, and missed consultancy appointments can result in financial losses for the client – and a lawsuit.
  • Professional negligence: A client could sue a tech company if their product or service is perceived to have failed to meet industry standards. This could leave the tech firm or professional with hefty legal fees.

Coverage Highlights:

Distinct insuring agreements provide affirmative third-party coverage for:

  • Professional and Technology Services Liability
  • Media and Advertising Liability – includes coverage for infringement or dilution of trademark, title, slogan, trade name, trade dress, service mark, service name, copyright, plagiarism, and misappropriation of ideas or information
  • Technology Products Liability – includes loss of use of technology products
  • Network Security and Privacy Liability – includes coverage for the failure in security that results in unauthorized access, use, tampering, denial of service or introduction of malicious code into data or systems, including disclosure of personal identifiable information
  • Optional Cyber extension (first party coverage)
  • Limits available up to $5mm
  • Defense costs in addition
  • Claims made policy form; Insurer has the “duty to defend”
  • Coverage on a worldwide geographical basis

Here’s Who We Cover:

  • Computer Consultants
  • Computer Programmers
  • Software Developers
  • Database Administrators/Designers
  • Hardware Installation/Support
  • Internet Services Providers
  • IT Consultants
  • IT Project Managers
  • IT Training Consultants
  • Website Designers
  • And more

Visit our website for more details.

Content is current as of the date of broadcast and is subject to change without notice.


  1. https://www.priv.gc.ca/en/blog/20191031/