The typical benefits to IT contractors insurance

July 8, 2010 · Filed Under IT contractors insurance 

Anyone offering a professional service by way of a business may benefit from certain types of insurance. IT contractors insurance is a type of insurance that typically provides protection offering several benefits and may be worthwhile considering if you are in the information technology business.

The benefits included in IT contractors insurance may vary depending on who you take the policy out with and the level of insurance you require. While this type of insurance is not typically compulsory, it may pay to have it behind you if the worst case scenario were to occur and you found yourself in a tight spot if a claim is made against you by a client for such things as loss or damage (see examples below). Without insurance you may have to find large sums of money out of your own pocket as owner of the company.

You may find that the policy typically protects against events such as these listed below. However, not all IT contractor insurance policies will offer all of these benefits and features. Some may come as standard or may be an optional add on or may not be available at all, so it may make sense to consult a specialist professional indemnity insurance broker:

  • a loss of customer’s data or documents – as you are offering a service as an IT contractor insurance covering this loss may be a lifeline as typically you may be involved with data and/or documents;
  • public liability protection – the insurance provider may include this in your policy or you may be required to add this on as extra. This part of the insurance generally provides protection in the event of a member of the public suffering an accident or loss on your property;
  • breach of confidentiality that is accidental;
  • slander and libel claims that may be made against you.

When taking out insurance always check the small print as there are typically terms and conditions and again these may differ based on your insurance provider.

In summary, while insurance may be perceived as another added cost, without it your company and business may be put at risk. If the worst scenario raised its ugly head you might be forced out of business if a claim for substantial damages is made against you and have no insurance behind you.

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