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<\/figure>\n<\/div>\n\n\nIf you\u2019re considering going solo as an IT contractor, you\u2019re probably wondering: what\u2019s the best way to protect myself and ensure a bright future? <\/p>\n\n\n\n
It can all be a bit confusing when you\u2019re first starting out. But trust us \u2013 it\u2019s worth putting in the time before<\/em> you take on clients to get the right protection.<\/p>\n\n\n\n Having IT contractor insurance is a bit like having a firewall for your business. It\u2019s there to shield your finances, your reputation, and your precious time. A great place to start then\u2026<\/p>\n\n\n\n <\/p>\n\n\n\n There are plenty of reasons why an IT contractor should have insurance\u2026<\/p>\n\n\n\n It might not be a legal requirement, but many clients (especially corporate companies and ones from the public sector) will insist on you having it before they\u2019ll agree to work with you.<\/p>\n\n\n\n And even if your clients don’t require it, it\u2019s there to protect you if something goes wrong. Not to mention, it shows you\u2019re professional and gives your clients peace of mind\u2026<\/p>\n\n\n\n An IT contractor can encounter all sorts of glitches that aren\u2019t as easily fixed as just turning it off and on again.<\/p>\n\n\n\n What if a client claims the software you\u2019ve built or recommended isn\u2019t fit for purpose and has wasted their money? Or you took twice as long as you said to deliver and breached your contract?<\/p>\n\n\n\n You\u2019re probably not sure\u2026and that\u2019s OK. You\u2019re no legal expert and you\u2019re not expected to be. That\u2019s why you need insurance though \u2013 to defend you and cover the costs if a claim like this comes your way.<\/p>\n\n\n\n There are other potential pitfalls to consider too\u2026 Professional indemnity (PI) insurance<\/a> is the most important one for IT contractors. It\u2019ll cover you for claims like the ones we\u2019ve already talked about \u2013 if the work you\u2019ve done doesn\u2019t meet a client\u2019s expectations, or you breach your contract, for example. These are the most common type of claims, and quite often the most expensive too… <\/p>\n\n\n\n PI insurance will pay to defend you in these kinds of situations, and cover any compensation owed to the client.<\/p>\n\n\n\n If you visit clients in person, if they come to your office, or if you work on clients\u2019 tech, it\u2019s a wise move to have public liability insurance<\/a>. This covers any legal fees or compensation if you cause an injury or property damage. Say you spill coffee over a client\u2019s expensive laptop, for example.<\/p>\n\n\n\n Another essential type of insurance for those working in the digital world is cyber insurance. Being in the tech industry, you probably don\u2019t need us to delve into the nitty-gritty of how cyber-attacks work\u2026<\/p>\n\n\n\n But what you might not know, or have really thought about, is how to keep your business afloat if someone steals your client\u2019s data. Retrieving data, getting your systems secure again, and maybe even having to do some PR if you get bad press\u2026<\/p>\n\n\n\n Having comprehensive cyber insurance<\/a> in place will help you get back on track should something like this happen. Add on financial cybercrime and cover for your lost earnings and you’ll know that if you\u2019re hacked, your business will recover.<\/p>\n\n\n\n You\u2019ll have IT, legal, and PR experts on hand to sort it all out. That leaves you to do your job and keep winning new contracts.<\/p>\n\n\n\n Your IT contractor insurance requirements don’t stop there. Some other types of insurance you might want to think about include contents<\/a> and portable equipment insurance<\/a>, business interruption<\/a>, and employers<\/a>\u2019 liability insurance<\/a> if you employ anyone (it\u2019s the law).<\/p>\n\n\n\n <\/p>\n\n\n\n Clients will often tell you how much professional indemnity insurance cover<\/a> they expect you to have. Especially if you\u2019re working on a big project, or if you\u2019re going through an agency or consultancy.<\/p>\n\n\n\n But if they don\u2019t, as a rule of thumb, think about the worst mistake you could make. How much would it cost to put right? How much compensation would you have to pay your client? And then there\u2019s the legal costs too… <\/p>\n\n\n\n Your head\u2019s probably spinning with numbers by now. But it\u2019s always better to think of the worst-case scenario and overestimate, than risk being underinsured<\/a>.<\/p>\n\n\n\n If you\u2019re feeling unsure, it\u2019s a good idea to talk about it with a broker. They can help you figure out what your IT contractor insurance requirements are likely to be. If you\u2019re just starting out as an IT contractor, you might be thinking about getting a few clients under your belt before forking out for insurance.<\/p>\n\n\n\n But here\u2019s the thing\u2026<\/p>\n\n\n\n Some types of insurance, including professional indemnity, have to be in place at the time the work was done and<\/em> when the claim is made.<\/p>\n\n\n\n So let\u2019s say one of your very first clients makes a claim against you a year after you worked for them. Even if you have insurance when the claim comes in, it won\u2019t cover you if you didn\u2019t have it when you took on the client.<\/p>\n\n\n\n Ultimately, it pays to have insurance from the get-go. Because chances are, if you\u2019re going to make mistakes, aren\u2019t they more likely to be at the beginning of your career when you\u2019re still learning?<\/p>\n\n\n\n And, when you\u2019re just starting out, you\u2019re not likely to be making huge amounts of money or have built up a reputation yet. If you get a claim early on, and you don\u2019t have insurance, it could put your dreams of having your own business permanently on hold.<\/p>\n\n\n\n <\/p>\n\n\n\n Yes \u2013 your professional indemnity insurance anyway…<\/p>\n\n\n\n Like we said, this type of insurance needs to be in place when the work was done and when the claim is made.<\/p>\n\n\n\n And you probably know as well as we do, things can take a long time to surface. Years, even. As long as there\u2019s still a chance something you\u2019ve done could cause a problem and result in a claim, you need the insurance in place.<\/p>\n\n\n\n If you close your business or retire later on, you can get something called run-off cover<\/a>. It only covers work you did in the past.<\/p>\n\n\n\n So don\u2019t cancel your policy too soon. Speak to your broker if your circumstances change and adapt it instead.<\/p>\n\n\n\n <\/p>\n\n\n\n Whatever industry you work in, business insurance should be tailored to your specific needs. It\u2019s never one-size-fits-all. So it\u2019s important to take your time and make sure you\u2019re buying what\u2019s right for you.<\/p>\n\n\n\n That\u2019s where a broker<\/a> can really come in handy. They\u2019ll do the legwork for you and figure out exactly what you need. Find a broker who specialises in IT contractor insurance, so they understand your business on a deeper level.<\/p>\n\n\n\n And it\u2019s not all about choosing the right insurance. It\u2019s about doing what you can to protect yourself from claims arising in the first place\u2026<\/p>\n\n\n\n Always read your client\u2019s contracts carefully. Make sure you understand exactly what\u2019s expected of you, so you\u2019re not faced with any nasty surprises.<\/p>\n\n\n\n <\/p>\n\n\n\n Your IT contractor insurance requirements will probably change over time as your business grows. So make sure you\u2019re reviewing it regularly, and that you\u2019re always protecting yourself from risks.<\/p>\n\n\n\n Stick a reminder in the diary when your renewal is approaching. If you forget to renew, gaps in cover could leave you exposed. And renewal is always a good time to review where the business is at and whether your insurance is still covering all bases.<\/p>\n\n\n\n If you\u2019re still feeling unsure about what your IT contractor insurance requirements are, take a look at our IT contractor insurance page<\/a>, or you can give us a call on 0345 222 5391<\/strong>.<\/p>\n\n\n\n Image used under license from ShutterStock<\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re considering going solo as an IT contractor, you\u2019re probably wondering: what\u2019s the best way to protect myself and ensure a bright future? It can all be a bit confusing when you\u2019re first starting out. But trust us … Continue reading Do IT contractors need insurance?<\/strong><\/h2>\n\n\n\n
<\/p>\n\n\n\nWhat insurance do IT contractors need?<\/strong><\/h2>\n\n\n\n
How much professional indemnity insurance do I need as an IT contractor?<\/strong><\/h2>\n\n\n\n
<\/p>\n\n\n\nWhen should I get insurance?<\/strong><\/h2>\n\n\n\n
Do I need to keep my insurance after I\u2019ve finished a contract?<\/strong><\/h2>\n\n\n\n
Choosing the right insurance as an IT contractor<\/strong><\/h2>\n\n\n\n
Final tips and next steps<\/strong><\/h2>\n\n\n\n