5 reasons IT contractors need professional indemnity insurance
With more and more IT professionals choosing to work as contractors rather than in long term roles, insuring yourself against the risks in the IT industry has never been so important.
IT contractors face a whole range of risks, even if they are not immediately obvious. Coding errors, failure to deliver projects on time or breaches of contract are just some of the claims that have cost IT contractors much more than an unhappy client.
To highlight the importance of professional indemnity insurance for IT contractors, here are 5 reasons why it is vital to arrange the right cover for your business.
1. No insurance, no contract.
Many contracts require you to have professional indemnity insurance, limiting the cost to the employer if you do make a mistake. Clients may be reluctant (or even refuse) to hire you without professional indemnity insurance. To have the best chance of getting a contract, arranging professional indemnity insurance is a necessity.
2. Claims can bankrupt IT contractors.
A claim for an error or omission in a project could cost anything from a few hundred pounds to hundreds of thousands. If you are uninsured, you will have to foot the bill for legal fees and compensation which could leave your financial situation vulnerable in the event of a claim.
3. Mistakes can happen.
Regardless of how many years experience you might have it is impossible to know what could happen on the next project; it only takes one mistake for a claim to occur. For complete peace of mind, buy insurance that will cover an allegation that you have made a mistake in your work (professional indemnity insurance), as well as injury or damage caused to third parties (public liability insurance).
4. Most employment agencies won’t cover you.
Whilst employment agencies can help find your next contract, their insurance is unlikely to cover the work you carry out on a project. Be sure to check whether you need to arrange your own insurance before you start the contract.
5. Protect against the unforeseen.
Having a laptop and its accessories stolen would not only cost you hundreds of pounds but could also delay time sensitive work for clients. This could put serious strain on the relationship and lead to a claim for failing to deliver a project on time. Even worse, if there is confidential data belonging to the client on the stolen laptop, they could make a claim against you for negligence.
Arrange your own IT contractor insurance with Markel direct. Get an online quote now or speak to an expert on 0845 688 2500.