The information technology (IT) industry has become the backbone of nearly all business activities by 2026. From banking and logistics to hospitals and e-commerce to manufacturing, everything now relies on digital systems. IT companies are no longer simply software or technical service providers—they are data guardians, business process managers, and the backbone of their clients’ operations.
However, the larger the IT company’s role, the greater the risks. Today, a single system outage can shut down hundreds of companies. A single data breach can trigger a multi-border lawsuit. A single cloud misconfiguration can result in billions of rupiah in losses.
Therefore, IT companies in 2026 will face more than just technical risks. They will face legal, data, reputational, and financial risks all at once.
The problem is, many IT companies still use insurance structures designed for conventional businesses — fire, vehicle, or physical asset insurance — that don’t address their core risks at all.
This article will thoroughly discuss the most appropriate insurance packages for the IT industry in 2026, as well as how to structure them to truly protect business continuity.
Why IT Industry Risks Will Increase in 2026
There are four major changes that make the IT industry much more vulnerable than it was five or ten years ago:
1. Digitalization Total
Clients are no longer just buying software. They are delivering:
- Customer data
- Payment system
- Business operations
- Digital infrastructure
When an IT company fails, clients aren’t just inconvenienced — they can collapse.
2. Stricter Data Regulations
Countries in Asia, Europe, and even Indonesia now have much stricter data protection regulations. A breach could mean:
- Large fine
- Investigation regulator
- Obligation to compensate clients
3. Clients are increasingly aware of the law
Clients are now better prepared to sue IT vendors in the event of:
- Downtime
- Data breach
- System failure
- Financial losses due to technological errors
4. Cyber Attacks Are Becoming More Sophisticated
Ransomware, phishing, and hacking now target:
- Software house
- SaaS provider
- System integrator
- Data center
Not only banks or e-commerce.
Why Regular Insurance Isn’t Enough
Many IT companies feel they already “have insurance” because they have:
- Building insurance
- Laptop insurance
- Vehicle insurance
But when the client sued because the system was down, this policy did not pay anything.
The biggest loss for IT companies is not fire or theft, but rather:
- Lawsuitclient
- Data recovery costs
- Regulator fines
- Loss of contract
- Damaged reputation
This risk can only be handled with a special insurance package.
Core Insurance Package for IT Industry
1. Cyber Insurance
Cyber Insurance is the backbone of IT company protection.
Ensure:
- System recovery costs
- Investigation forensics
- Notification fee to client
- Legal fees
- Regulator fines (if permitted by law)
- Third party claims
Examples of real risks:
A SaaS provider was hit by ransomware. Client databaseslockedOperations were suspended for 3 days. The client is demanding compensation for lost transactions.
Without cyber insurance, companies have to pay for all these losses themselves.
2. Professional Indemnity (IT Liability)
This is the most important insurance for:
- Software developer
- System integrator
- Cloud provider
- IT consultant
- Managed service provider
Guarantee if the client sues because:
- Bug
- Error system
- Wrong design
- Failed to meet specifications
- Downtime due to IT errors
Example:
SystemThe ERP failed during go-live. The client suffered losses due to production shutdowns. They sued the IT vendor.
Professional Indemnity pays defense costs and damages.
3. Directors & Officers (D&O)
In 2026, IT company directors could be sued personally for:
- Negligence in managing data security
- Business decisions that are detrimental to investors
- Major breach of contract
D&O protects:
- Director
- Commissioner
- Management
From lawsuits targeting their personal assets.
4. Fidelity Insurance
IT companies are highly vulnerable to:
- Fraud internal
- Abuse of system access
- Payment manipulation
- Theft data
Fidelity Insurance protects companies from losses resulting from dishonest actions of employees.
5. Property & Electronic Equipment Insurance
Ensure:
- Server
- Network device
- Laptop
- Data center equipment
From fire, flood, power surges, and theft.
This is important because physical damage can trigger greater digital loss.
How to Put Together a Package Correctly
The most common mistake IT companies make is purchasing policies separately without integration. The correct approach is to build a risk protection architecture.
The steps:
- Map IT service types
- Determine what data to manage
- Identify potential client demands
- Measure exposure financial
- Arrange limits and policies according to risk
This is where the role of a specialist broker becomes crucial.
Conclusion
In 2026, IT companies can no longer rely on luck. They are in the midst of:
- Risk technology
- Legal risks
- Riskfinancial
- Reputational risk
One incident can wipe out years of profits.
Insurance is no longer an expense, but a survival tool for the IT industry.
Recommendations from L&G Insurance Broker
As a specialist liability, cyber, and corporate risk broker, L&G Insurance Broker helps IT companies:
- Analyzing technology & legal risks
- Putting together the right Cyber, PI, D&O, and Fidelity package
- Negotiating a policy with optimal coverage
- Ensuring claims are paid when a crisis occurs
If your company is in IT, SaaS, cloud, or digital services, risks are already present — whether you realize it or not.
Contact L&G Insurance Broker for a free consultation and to develop your IT Company protection package in 2026.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCES AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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