In an age when almost every business uses technology to function, the need for expert IT professionals to provide support has never been greater. However, while IT contractors provide the technical skills and IT consultants provide guidance and planning, they all have one thing in common – they’re vulnerable to potential compensation claims that could run into the many thousands or even millions of pounds if things go wrong.
Specialist business insurance for IT contractors and consultants can protect tech professionals from financial claims for data leaks, errors in information, systems malfunctions, accidents, personal injuries or property damage and more. It’s an essential tool of the trade.
IT contractors are at the sharp end of the business, working with expensive equipment and sometimes being responsible for the safe handling of data worth millions or even billions of pounds. Additionally, they are often working off-site and exposed to the risk of causing damage to third-party property or even personal injury to others. Consider these examples:
While IT consultants are more engaged in the strategy, planning, design and management of technology services, it doesn’t mean they are any less exposed to risk than IT contractors. The information and advice that consultants provide can affect or implement business services worth many millions of pounds.
One simple mistake could cost the client a fortune and it is almost inevitable that they will seek compensation from whomever they believe was at fault. Consider these examples:
The fact is, small and large problems can arise anytime, anywhere, and they have the potential to derail even the most diligent and safety-conscious IT contractor or consultant. The financial impact of even minor incidents can be high, and the unwanted distraction and weight on your valuable time can only make the outcome harsher. IT contractors’ and consultants’ insurance not only takes care of the costs and legal arguments it can also give you peace of mind.
IT consultant insurance is an umbrella term for a range of policies that can protect consultants and contractors against almost any risk. Essential cover includes:
Professional indemnity insurance – covers businesses and individuals that advise clients, help them navigate complex financial or legal affairs, or provide them with vital information that may be published in the media. Professional indemnity (PI) can protect you if a client makes a financial loss because of fault in your work and then makes claim against your business. Trade associations, government bodies, public institutions, and major customers will often require proof of a minimum level of PI insurance before doing business with you.
Public liability insurance – protects you if someone is injured, or their property is damaged because of the services that you or your IT business provides. This type of cover is designed to protect your business against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your premises – whether you’re at fault or not.
Employers’ liability insurance – this is a legal requirement for most UK employers. It protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business.
Data breach and cyber-crime insurance – covers the costs if you or your clients suffer financial harm as the result of an accidental data breach or leak, or the malicious intentions of cyber criminals. Cover may also provide the support of cyber-crime experts to restore lost or damaged information and systems.
Business equipment insurance – protects you in the event that your important equipment, including laptops and mobile phones, are lost or damaged by theft, fire, flood or vandalism.
Premiums for IT consultants’ insurance can start at less than £4 per month, but costs will vary depending on the size of your business, your clientele, and the type of information, advice and services you provide.
All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let bad code, missing data or a cyber breach crash your IT business. Contact Swoop today to compare top-quality IT consultants’ cover from different providers and to discuss all your business insurance needs.
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