IT consultants insurance – professional indemnity insurance for your business
IT consultants insurance is a trade-specific professional indemnity insurance policy. Professional indemnity insurance (PI insurance) is something that many businesses will have, whether through choice or because it is mandatory to their profession (such as if you are an accountant). This insurance can give you peace of mind that should something go wrong and you are sued by a client, your business finances (and hopefully your reputation) will remain intact.
IT consultants insurance can generally provide cover against unsavoury situations that may occur such as accidental breach of confidentiality; defamation; libel; slander; dishonesty of an employee; loss of data or documents; unintentional infringement of intellectual property rights; wrong advice etc.
Public liability insurance may also form part of a PI insurance package or can often be purchased as an add-on to enhance your company’s protection.
Why do I need it?
Something as everyday as you providing consulting work on a computer system that then all goes horribly wrong may see your client sue you for damages. Not only will a court case be stressful, but your reputation and your business finances could be seriously compromised if your client is awarded damages.
This is where IT consultants insurance may be able to help, typically by paying towards the costs of defending you against any allegations made against your company, as well as any damages that are awarded.
In a nutshell, the policy can help defend a claim against you as well as cover you for any costs you become liable for. Certainly, having this form of risk management in place in the shape of a professional indemnity insurance policy may help your business survive if things get rocky and a client sues you or your business.
As mentioned in the opening paragraph, in some professions, professional indemnity insurance is mandatory. You may also find that some clients will only work with you if you can show that you have a PI insurance policy in place. This gives them protection that, should they need to sue you, they know they stand a chance of getting any costs awarded, if their claim is successful!
It can be a dog-eat-dog world out there and society seems to be more litigious than ever. Protecting yourself with IT consultants insurance may be something worth considering.