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ICT Insurance

Building tech? One bug, one breach, one mistake, and you're facing a lawsuit

Software failures, data breaches, missed deadlines, IP disputes, and tech startups face unique risks that standard insurance doesn’t cover. ICT Insurance protects you from the claims that could kill your startup before it scales.

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What could go wrong

(and why you need this)

Tech startups move fast and break things but when you break the wrong thing, it can break your business. Software bugs that cost clients millions, data breaches that trigger regulatory fines, IP disputes that force you to rebuild your product, tech-specific risks aren’t covered by standard business insurance. One critical bug or breach can destroy years of work and wipe out your funding runway.

Scenario 1

The software bug that costs millions

You’re a 5-person SaaS startup. Your payment processing integration has a bug that overcharges 2,000 customers. Some are charged multiple times. Complaints flood in.

Processing refunds costs $120,000*. Customers are threatening legal action due to financial distress. Your reputation is destroyed on social media. Lost ARR: $400,000*.

What ICT Insurance covers

Full replacement cost for all stolen items, temporary equipment hire while you wait for replacements, and costs to repair the damaged door and window.

Scenario 2

The water damage disaster

A pipe bursts in your office overnight. By morning, your carpet is ruined, your desks are warped, your stock is destroyed, and your server is fried.

Damage: $45,000*. You can’t operate from the office for 3 weeks while it’s repaired.

What ICT Insurance covers

Legal defence costs, compensation for financial losses, costs to fix the bug immediately, PR crisis management, and customer notification expenses.

Scenario 3

The data breach

Your cloud infrastructure is breached. Hackers accessed the customer database, which contained 15,000 user records, including emails, names, and encrypted passwords.

Under the Australian Privacy Act, you are required to notify every affected individual. OAIC investigates. Legal costs: $45,000*. Notification costs: $12,000*. Potential fines: $50,000*. Customer lawsuits: $200,000+*.

What ICT Insurance covers

All breach notification costs, legal defence, OAIC fines, forensic investigation, customer compensation, and cyber security remediation.

Scenario 4

The IP infringement claim

A large corporation claims your code infringes their patent. They’re demanding you stop using the code and pay $500,000* in damages.

You didn’t even know the patent existed. Legal defence alone will cost $100,000* to fight.

What ICT Insurance covers

Legal defence costs, IP investigation, expert witnesses, settlement payments if infringement is found, and costs to modify your code.

What this actually covers

ICT Insurance

ICT Insurance (Information and Communications Technology) is specialised cover for tech businesses:

Professional Indemnity for tech:

  • Software bugs and errors
  • Failed implementations
  • Missed deadlines and deliverables
  • Breach of contract claims
  • System downtime or failures
  • Data loss or corruption
  • Poor advice or consulting
  • Faulty workmanship in code

Cyber & Privacy Liability:

  • Data breaches and hacking
  • Privacy law violations (OAIC)
  • Customer data theft
  • Ransomware attacks
  • Security failures
  • GDPR breaches (if you have EU customers)
  • Notification costs
  • Regulatory fines

Intellectual Property cover:

  • IP infringement claims (unintentional)
  • Copyright disputes
  • Patent infringement defence
  • Trade secret breaches
  • Domain name disputes
  • Open source license violations

Media & Content Liability:

  • Defamation in user-generated content
  • Copyright infringement in content
  • Privacy violations in published content
  • Trademark issues

Contract & Financial Loss:

  • Third-party financial loss due to your services
  • Lost data recovery
  • Business interruption of clients
  • Consequential loss claims

What's typically not covered

  • Deliberate IP theft or fraud
  • Work done before insurance starts
  • Your own business losses (you can’t claim against yourself)
  • Bodily injury or property damage (that’s Public Liability)
  • Hardware theft (that’s Business Property insurance)

When you need this

By founder stage

Start smart

Pre-launch to first year

You need this from Day 1 if you’re:

  • Building software for paying customers
  • Handling any customer data
  • Providing SaaS, PaaS, or cloud services
  • Developing mobile or web applications
  • Offering IT consulting or services
  • Taking online payments
  • Storing user information

Typical coverage

$1-2M Professional Indemnity, $1M Cyber Liability, basic IP cover.

Scale strong

Growing and hiring

Your cover needs to increase when:

  • Your revenue exceeds $1M
  • You’re storing thousands of customer records
  • You’re signing enterprise clients
  • Contracts require $5M+ cover
  • You’re processing sensitive data (health, financial)
  • You’re expanding internationally (GDPR, other regulations)
  • You’re raising significant capital (investors often require it)

Typical coverage

$20,000-$50,000 for most startups with basic equipment.

Stay protected

Established and optimising

Review your cover annually or when:

  • You launch new products or services
  • You change your tech stack significantly
  • You have a near-miss (bug, breach, complaint)
  • You’re acquired or merging (representation & warranty claims)
  • You enter new regulated markets
  • You handle more sensitive data types

Typical coverage

This is where things get custom, and you need to talk to the team at Pocket to evaluate your specific needs.

Common questions

Founders actually ask

Isn't this just Professional Indemnity?

ICT Insurance combines Professional Indemnity with Cyber, IP, and tech-specific extensions.

Standard PI often excludes cyber events, IP disputes, and tech-specific risks. You need ICT-specific cover.