IT business insurance

Why do IT companies need insurance?

Because even the smartest systems fail.

Mistakes happen. And in your line of work, they can be costly. One wrong recommendation, one small bug in your code, or one missed update could land you in hot water with a client. Even if you haven’t done anything wrong, you might still need to defend yourself.

Then there’s your kit to think about. Whether you’re in the office, on-site with a client, or running a remote team - accidents, breakdowns and malfunctions are always a possibility.

And if you’re meeting clients in person, you’ll want protection if something gets damaged or someone gets injured. (It only takes one coffee spill on a client's laptop…)

That’s why business insurance for IT companies isn’t just a nice-to-have, it’s an essential safety net.

What does IT business insurance cover?

Start with professional indemnity insurance. It’s probably the most important insurance for IT businesses.

It covers you if a client claims you’ve made a mistake, given poor advice, or delivered work that’s not up to scratch. It’ll pay your legal costs and any compensation you owe, so you’re not left footing the bill.

You should also consider public liability insurance. If you visit clients or they visit you, it covers injuries and property damage. Think dropped laptops, tripping over cables, or a spilled drink on expensive tech. It’s a good idea, especially if your work takes you out and about.

Then there’s what you physically rely on to run your business – your equipment. Office and property insurance and portable equipment insurance will cover your kit if it’s damaged, lost, or stolen.

And last but definitely not least - cyber insurance. Even IT pros aren’t immune to cybercrime. Cyber insurance protects your business if you’re hit by an attack. It’ll pay for expert help to recover your systems, legal and PR support for data breaches, and optional extras like cover for financial loss or social engineering scams.

In short, it’s essential insurance for IT services in today’s connected world.

Is business insurance a legal requirement for IT companies?

No, it’s not a legal requirement for the most part. But things can go wrong, clients can get angry, accidents happen… so it’s a risk to your biz not to have it. People can sue for all kinds of reasons whether you have insurance or not.

And many clients will insist you have public liability and professional indemnity insurance before hiring you on a contract. Having professional insurance shows clients that you’re, well, just that… professional. And trustworthy.

If you have staff or hire in any help, even on a voluntary or temp basis, that’s where the legal requirement comes in. You need to have employers’ liability insurance by law.

And if you don’t, you could be fined up to £2500 for everyday you were meant to have it by The Health and Safety Executive.

Do I need cyber insurance if I already have professional indemnity cover?

Yes, and here’s why…

While some professional indemnity policies might offer limited cyber cover, they’re not designed to handle the full fallout of a cyberattack.

Cyber insurance gives you access to expert response teams, forensic investigation, legal defence, client notification help, and PR support. There are also options for financial crime and social engineering cover, plus lost income cover should a cyber-attack prevent you from operating as normal.

It’s comprehensive protection for your systems, your data, and your reputation.

Makes sense then to have it as part of your IT business insurance strategy.

How much does IT business insurance cost?

It depends on a few things, like:

• The size of your business
• The types of cover you choose
• How much cover you need.

But don’t worry, you can get a quote in just a few clicks and this’ll give you an exact cost. If you’re not sure what’s right for you, our friendly advisers are on hand to help. Give them a call on 0345 561 0320.

Why choose us?

We specialise in business insurance for IT companies. That means we understand your world, and we know you don’t have time to waste.

We make things quick and simple. You can buy cover online in minutes or give us a call if you want to talk it through. Our expert advisers keep things clear, straightforward, and jargon-free.

Want proof we know our stuff? We’re rated Platinum by Feefo for customer service.

And if you refer someone to us, we’ll say thanks with a reward.