While installing hardware at a client site, a loose cable you left across a walkway trips a visitor. They injure their back, and the client also says the cable damaged a server rack. They seek medical costs and repairs.

Tech business insurance covers financial loss. Physical injury or property damage is often excluded and usually sits with public liability.

You sign a client contract with a $50k per day service credit if the platform is late, plus an indemnity for any losses regardless of fault. Delivery slips, and the client demands the service credits and liquidated damages.

Contract penalties and service credits are often excluded. Cover usually applies only to liability you'd have even without the contract.

To win a contract, you promise a security feature in writing that you know doesn't exist, and you sign off the go live anyway. After a breach, the client says you acted dishonestly and sues for damages and legal costs.

IT liability insurance usually excludes dishonest or criminal acts. It's made for errors and oversights, not intentional wrongdoing.

You notice a bug in a client's live system, but you keep working and hope it goes away. Two months later the client says the bug caused a big outage and lost revenue, and they make a claim after you've taken out the policy.

Known issues before the start date are usually excluded. If you were already aware of the problem, the policy may not respond later.