Why buy IT consultants insurance?

December 15, 2009 · Filed Under IT Consultants Insurance 

Although you may enjoy your job and chosen career immensely, you may potentially be at risk of serious financial loss if you do not have IT consultants insurance. Why?

By virtue of your job, you provide professional services in return for a fee. If one of your clients suffers material loss or damage as a result of your error or poor advice, they may well turn to you for real hard-cash financial compensation. The sums awarded by courts may also be very substantial indeed.

Perhaps this sounds a little unlikely? Consider some following scenarios:

  • you have recommended the procurement of a major system or hardware infrastructure that subsequently proves not to be fit for purpose;
  • you have accidentally sent a confidential file of your client’s information to the wrong addressee on your email system;
  • you have passed on for comment to others some of your client’s information only to subsequently discover that is regarded as commercially sensitive.

The list could easily be significantly extended.

The key point is that as a professional business person you could be called to account legally for a wide variety of things including slander and libel, professional negligence and incompetence, breach of client confidentiality / non-disclosure agreements or defamation of character.

In all these situations, the ‘accidental’ nature of the infringement or what you may have actually intended to do or may be, at best, of only secondary interest to a court. What will count is the effect on your client or the plaintiff and that is where damage awards may leave you in serious financial difficulties unless you have IT consultants insurance. This insurance may help in situations like these.

This form of cover is part of our professional indemnity insurance (PII) product. We also offer public liability insurance to protect you against the financial effects of claims from members of the public who have suffered injury or loss as a result of your activities.

You can find out more about IT consultants insurance entirely free of obligation by reading further information on our web site. It may be a useful investment of your time and a first step towards reducing your financial exposure profile!


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