IT contractor insurance

Why do IT contractors need insurance?

However expert and dedicated you are, the reality is, things can go wrong. Errors are made, accusations follow. Imagine a client claims your software migration caused days of downtime and lost revenue. Or a security patch you recommended didn’t prevent a breach and now they’re demanding compensation. Even a simple misunderstanding over project scope can spiral into a legal dispute.

Professional indemnity insurance steps in to cover legal costs and any compensation, so one mistake doesn’t wipe out your hard-earned reputation. Or your business.

It’s peace of mind for when things go wrong, even if you did everything right.

How much professional indemnity insurance does an IT contractor need?

Work out how much professional indemnity insurance you need by looking at the contracts you take, who they’re for, and what’s involved. Then picture your worst-case scenario and what it might cost.

Your own legal team will need to be paid for, before you even think about any payouts to the client. Your policy will need to cover all of this.

Read this guide or call us if you’re still unsure.

What does professional indemnity insurance cover?

Professional indemnity offers IT contractors protection against claims of negligence made by clients and third parties.

It can also cover loss of documents or data, dishonesty on the part of an employee, transmission of viruses, any breaches of confidentiality, and third-party equipment going wrong - and a whole host of other areas. It all depends on the wording of the policy.

And the best thing is, some policies can correct a mistake before the customer even gets to know about it, avoiding a claim being made.

Does an IT contractor need public liability insurance?

Probably…

If you work away from your office, or clients visit you, this insurance has your back. It covers claims for accidental property damage or injury said to be your fault.

For example, you’re installing kit at a client’s office and knock over an expensive monitor. Or a client trips over a cable you’ve failed to secure and ends up in A&E.

What other insurance does an IT contractor need?

Employers’ liability insurance - provides cover if an employee sues you for damages, mainly because they have health problems as a result of working for you. A legal must for UK firms with staff.

Office and property insurance - for all your furniture, tech, and other kit.

Portable equipment insurance - pays to repair or replace gadgets used away from base like laptops, tablets and projectors.

Business interruption insurance - means you can carry on working even if your own office is unusable. The policy will cover the cost of setting up elsewhere and any lost income in the meantime.

Directors’ and officers’ insurance - covers company bosses, because they can be held personally liable for their actions. Your policy covers your defence costs, and any payouts you could have to make.

Cyber insurance - pays to fix and reboot your systems if you’re hit by a cyber-attack. Also includes legal and PR support if you’re sued for data loss. Financial cybercrime (including social engineering) and lost earnings can also be covered.

Why choose us?

We specialise in business insurance. And we know that you don’t always have time on your side.

That’s why we’ve made buying a policy quick and easy. So you can get the cover you need in just a few clicks.

We also know that you’re probably going to have questions. Insurance can be confusing, and sometimes you just need someone on the other end of the phone who knows what they’re talking about.

Every one of our advisers can provide expert advice and guidance. The best part? They keep it simple. In language you can understand.

That’s why our customer service is rated Platinum by the independent reviews platform Feefo.

Oh, and we’ll even pay you if you successfully refer someone to us.

Still on the fence? Check out our customer feedback and find out how we do insurance better.