What is IT contractors insurance?

August 4, 2010 · Filed Under IT contractors insurance 

As an IT contractor you are responsible for many different aspects of your clients and as such you may be a prime target for lawsuits or claims against yourself, or your company. With this in mind anyone who runs a business managing data and advising on the IT matters of others may wish to consider IT contractors insurance. So how might this insurance help you?

Let’s first take a look at some of the many things that your IT contracting company may be faced with.

Your client’s data
Firstly, information technology means you are working with your client’s computers and telecommunications systems which store large amounts of data. If something were to happen to this data such as it falling in to the hands of someone else, and it was in your safekeeping, you might face legal action. If your IT contractors insurance covers data loss, typically you have your insurance policy to help you when it comes to court costs (up to set limits of course).

Accidental breach of confidentiality, libel and slander
The same policy may also provide protection in the event that you breached confidentiality. Again the company or person you are working for may sue you, and without insurance, courts cost, including any awards made to the other party, typically have to come out of your own pocket. These may add up to a large sum, which in the worst case scenario might see you losing your business.

Your clients might also take you to court for libel or slander (if you accidentally wrote or said something about your client that was incorrect and / or which had a negative effect on their business) – again the typical insurance policy for IT contractors may provide financial protection in cases such as this.

Public Liability Issues
Public liability insurance may be included in with your IT contractors insurance, or you may have to pay a little more to purchase it separately. If your contracting job brings you into contact with the public, this insurance may be well worth having. If a member of the public was injured and it was seen to be your fault, a court case may be taken out against you. The insurance can help with the bulk of the associated costs of having a claim made against you, even if it doesn’t cover them all. When taking out the insurance or indeed any insurance, always check the small print of the policy. There are always limitations as to how much the insurance policy pays out in the event of a successful claim.

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