Cyber insurance underwriter Emergence Insurance has rolled out a new product tailored to the needs of Australia’s IT services sector, as a separate industry report flags major shifts in risk exposure across the technology landscape.
The newly introduced policy, called Tech Event Protection, combines multiple lines of cover – professional indemnity, cyber, and public and product liability – into a consolidated offering.
The product is designed for companies that provide IT services and digital infrastructure, which are increasingly exposed to cyber threats, technical failures, and third-party liability risks.
Troy Filipcevic, chief executive of Emergence, said the policy responds to the sector’s distinctive risk environment.
“With Tech Event Protection, we are delivering an industry-specific solution that acknowledges their unique risks and provides broad coverage to safeguard their operations,” he said.
The policy is Emergence’s first industry-focused offering and is positioned as a response to growing demand for customised insurance products amid a rapidly digitising business environment.
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The launch follows the release of a new report by brokerage Lockton, which outlined emerging risks and insurance trends within Australia’s tech sector.
The 2025 report identified a combination of regulatory developments, artificial intelligence risks, and cybersecurity threats as key challenges shaping insurance demand.
On the regulatory front, changes both overseas and within Australia are reshaping risk exposure. US debates over Section 230 and the European Union’s Digital Services Act are shifting expectations for platform accountability. Locally, the federal government is considering new rules on content moderation, AI oversight, and data governance.
Lockton’s analysis recommends that technology firms examine their policies to ensure that defence costs, regulatory investigations, and penalties are adequately covered, and that board governance practices are clearly documented.
With more businesses deploying AI tools, insurers are paying closer attention to related liabilities, including decisions made by algorithms, intellectual property risks, and regulatory non-compliance.
Lockton said some underwriters are offering new policy extensions that address AI-specific risks. Organisations are encouraged to include AI-related provisions in cyber and PI insurance policies, and to implement governance measures that allow human oversight of automated systems.
Cybersecurity remains a top concern. As cyber threats continue to grow and regulatory expectations become more demanding, insurers are revising terms and conditions – particularly around exclusions for cyber warfare and politically linked attacks.
Companies are advised to evaluate the scope of their cyber insurance to confirm that incidents like state-sponsored attacks and third-party data breaches are covered.
Lockton also flagged the importance of managing risks within supply chains. Underwriters are increasingly scrutinising vendor cybersecurity protocols when assessing clients’ risk profiles.
Political changes in the US and the lead-up to Australia’s federal election are contributing to policy uncertainty, which could influence how technology businesses operate.
Concurrently, economic concerns such as rising costs, constrained R&D budgets, and skills shortages are affecting business strategies.
These issues have insurance implications. Lockton recommends reviewing D&O and political risk coverages, particularly for companies with cross-border exposure or governance vulnerabilities tied to financial volatility.
Workforce trends are also influencing risk management strategies. Major tech firms have undertaken job cuts in early 2025, adding to existing challenges around talent retention and compliance with employment regulations.
Lockton advises firms to revisit employment practices liability (EPL) coverage to ensure protection against potential claims tied to mental health obligations, redundancies, or workplace disputes.
