Safeguarding IT professionals – your essential insurance

An IT contractor brings specialised expertise to the table, while a consultant offers strategic advice – insurance serves as a safeguard for businesses in these roles when unforeseen events occur. Insurance provides a safety net for an IT contractor or consultant against the financial repercussions of a claim or legal action, whether it’s due to a client’s dissatisfaction or a data breach. At Howden, we offer tailored policies that include essential covers like professional indemnity insurance and cyber threat protection.

Why is Insurance Vital for IT Contractors?

System Downtime

Imagine a scenario where a client’s system crashes due to untested updates in the operating system, and you’re the go-to person for a fix. Despite your swift action to restore service, the client holds you accountable for the malfunction and seeks compensation for the revenue lost during the outage, arguing that you should have anticipated software failures. In such cases, professional indemnity insurance can be invaluable, covering legal defence and settlement costs.

Accidental Injuries 

Consider a situation where you’ve won a consultancy project with an energy firm to overhaul their data systems and conduct staff training. During a training session, an accident involving your laptop charger leads to an attendee’s injury. Public liability insurance can be a lifesaver, covering legal fees and compensation if a claim is filed against you.

Data Security Incidents 

While enhancing a fashion brand’s network management, a security breach occurs, and hackers access sensitive information. As an IT contractor, it’s crucial to have insurance that covers data retrieval, system repairs, and defence against compensation claims. Cyber and data insurance can support recovery efforts, system restoration, and data recreation.

What insurance is available to IT professionals?

Professional Indemnity Insurance 

For risks associated with professional services, like consultancy, professional indemnity insurance is considered fundamental. It protects you from legal claims if a client alleges that your error caused them financial loss or reputational damage. This insurance aids in covering defence and settlement expenses.

Cyber and Data Insurance 

Cybercrime is a complex and ever-changing threat, one that you often counsel your clients about. Cyber and data insurance play a crucial role in protecting both you as a consultant and the businesses you serve. It helps manage the costs associated with data loss recovery or the consequences of a cyberattack.

Personal Accident Insurance 

As a solo entrepreneur, your business’s success hinges on your well-being. An injury, whether job-related or during a personal activity like a charity soccer game, could sideline you and impact your income. Personal accident insurance ensures financial support during recovery, allowing you to bounce back and take on your next IT project.

An IT contractor might also seek other insurance types, such as public liability insurance, to their policy. Employers’ liability cover can be essential when employing staff, while you could also include portable equipment cover, equipment breakdown insurance and legal protection.

Not sure what you need?

If you’re not sure what you need, our insurance experts are here to help. Simply pop into your nearest Howden Commercial branch, and tell us a little more about your business. Our local teams will help you find the right advice and cover, for your business.