atw: New exclusions on Professional Indemnity Insurance

It's renewal time, but the insurer (CGU) is proposing some new exclusions.
Just wondering if anyone has an opinion--are these new exclusions so broad
as to make the insurance not worth it?

Computer Consultants Exclusion

[blah blah blah] this policy shall exclude absolutely all liability that is
caused by or arises from:

1. [sale or supply of computer hardware...]

2. Advice on methods, practices or procedures or opinions on financial
statements, whether such advice or opinion is in writing or not;

3. Breach of confidential information or trade secrets, patents, copyrights
or the unauthorised use or infringement of the systems or programmes of
others unless caused by a professional act, error or omission in data
processing or computer consultancy; and

4. The loss of or damage or documents data processing media or erasure of
information contained thereon, unless such loss, damage, distortion or
erasure of information is caused by a professional act, error or omission
in data processing or computer consultancy;

5. [servicing of equipment...]


The second item (Advice on methods, practices or procedures) would apply to
us. I read this to mean I would not be covered for a claim arising from my
advice to a client about documentation methods and procedures. However, as
written, couldn't this also mean I am not covered for my advice on methods
and procedures *in a user guide*? For example:
- in a manual for a backup security product or I discuss different backup
strategies or security procedures
- a user of the software follows the procedures in the manual and suffers
some sort of loss or damage
- user of the software sues the vendor and me

Does this exclusion mean I'm not covered?

The third and fourth items seem reasonable but I don't really understand
the part about "unless caused by a professional act, error or omission".

Time to see a lawyer?

Thanks

Stuart

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