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Markel Direct's specialist software consultants' insurance can protect your business against a wide range of risks in the IT consultancy industry.
Our specialist software consultants' insurance could help protect your business against mistakes you make in your work. Consulting can be highly rewarding, but it also comes with specific risks.
Despite your best efforts, the recommendations you provided could cause financial loss for your client, potentially leading to an expensive claim.
Cover at a glance:
- Professional indemnity cover up to £5m
- Covers errors in software advice, implementation and support
- Suitable for freelance consultants and small tech firms
What is software consultants insurance?
Software consultants’ insurance is designed for IT consultants and contractors who advise clients on all aspects of software and applications. It’s not just one product; it’s a range of covers that can be tailored to your needs. Software consultancy projects don’t always go to plan (for example, a software solution you provide is not fit for purpose) and you could be pursued for financial losses your client incurs as a result of your mistake. It’s a worthwhile consideration to ensure you have the appropriate level of cover, to safeguard your business from unexpected claims.
If software consultants’ insurance isn’t what you require, please consider the following alternative options:
Cover starting at
£5 a month*
*Price based on a software consultant requiring £1 million of public liability insurance.
Why do software consultants need insurance?
Any business providing software consultancy should consider having insurance cover in case something goes wrong in the course of providing their services.
Without the right insurance cover in place, you would have to pay the cost of defending a claim (as well as any compensation payments that could be due to your client) out of your own personal finances.
What does software consultant and contractor insurance cover?
Software consultants insurance from Markel Direct offers a range of covers that can protect against different scenarios, including:
- Breach of contract – a software consultancy project your business is carrying out overruns, leaving you liable to the costs incurred by your client.
- Damage to property – you drop an expensive client-owned laptop on your way to their office. They send you the bill for a replacement.
- Professional negligence – a software solution you recommended is deemed to be unfit for purpose by your client. They take legal action against you to recover their losses.
Markel Direct's software consultants' insurance can protect your business against such scenarios, giving you peace of mind that you’ll be covered if something goes wrong.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Software contractor public liability insurance
Obtaining the appropriate level of software contractor liability insurance is a worthwhile consideration, even in a largely digital role. A contractor visiting a client site could accidentally cause property damage, or injury to a third-party during business activities. By ensuring you have public liability insurance in place, you’ll have peace of mind knowing that you’re covered if a claim is made against you.
Build your software consultants insurance policy to suit you
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Professional indemnity insurance
Professional indemnity insurance covers the cost of defending your software business against allegations of professional negligence and, in the event of an unsuccessful defence, the cost of damages awarded against you.
Examples of claims that are covered include:
- Breach of contract
- Professional negligence
Markel Direct’s policy also includes mitigation of loss cover, which pays the costs incurred to put a mistake right before your client makes a formal claim against you. This is essential insurance for software consultants providing advice, with limits ranging from £50k to £5m.
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Public and product liability insurance
Public liability insurance covers the cost of defending your business against allegations of injury (or property damage) caused by your negligence.
It will cover your legal costs as well as any compensation payable in such an event.
Limits range from £1m to £5m.
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Employer’s liability insurance
Employer’s liability insurance is a legal requirement if your business has any employees. This insurance will cover your business against claims for injury or illness suffered by employees arising from their employment at your company.
If your business employs other software consultants, this cover is important. Limit of £10m.
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Legal expenses insurance
Commercial legal expenses insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided for the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.
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Directors and officers insurance
Directors and officers insurance covers the costs of defending you, if you are a director or officer of your company, against allegations of wrongful practices and any subsequent damages awarded against you.
Cover is also provided in respect of the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings.
Limits range from £25k to £5m.
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Office insurance
Office insurance provides cover for your business's:
- Office buildings
- Office contents
- Computer equipment
Optional cover within this policy includes covering your business equipment, such as laptops and mobile phones, on a worldwide basis. This is ideal if you travel frequently for work.
You can also insure your business against loss of income and/or additional trading expenses following events such as a flood or fire.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much it will cost
Software consultants insurance starts at £5 per month, with costs varying depending on the covers and limits you choose. There are no hidden fees or cancellation charges if you choose to end your policy early.
How to arrange your software consultants insurance
Get an online quote in just 90 seconds now. Arranging cover with Markel is fast and easy and you'll receive an instant proof of cover, enabling you to secure contracts straight away. You’ll be asked a series of quick questions about you, your business and your activities and receive a quote instantly.
Ready to build your quote?
Our simple quote process will help you to find the right business insurance for your individual needs.
Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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I need to arrange software consultants insurance to secure a contract – do you provide proof of cover?
Yes. Markel will email your policy documents to you instantly when you purchase software consultants insurance. This includes a dedicated ‘Confirmation of Liability Insurance’ document, detailing the cover you have chosen, which can be presented to agencies and clients as proof of cover.
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Is my past work covered?
Markel covers past work if you have held uninterrupted professional indemnity insurance prior to purchasing your cover with us.
If there was a period of time where you did not hold professional indemnity insurance in force, we are unable to cover past work.
Examples:
- You have never arranged professional indemnity insurance before
- You chose not to renew a previous policy
- Or, you cancelled a previous policy at the end of a contract
If you require further clarification on past work, please call us on 0800 640 6600.
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What limit of cover should I choose?
Many clients and industry bodies with regulatory requirements will require software consultants to have a minimum level of cover to undertake a contract. Before arranging cover, please check such requirements.
If you are unsure, or this is the first time you have arranged cover, consider a worst-case scenario and the likely costs involved.
Markel offers a range of limits, so there are multiple choices available to find the right cover for your business.
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What's the difference between professional indemnity and public liability?
Professional indemnity covers against allegations of professional negligence. It would cover you if you made an error or mistake while undertaking a piece of work for a client, such as a project or report.
Public liability insurance covers against allegations of injury or illness caused to third parties through your negligence. It covers many of the slips, trips and falls associated with personal injury claims. In addition, public liability insurance covers against damage to third party property.
As both professional indemnity and public liability insure against different scenarios, it is important you consider arranging both types of cover to ensure proper protection.
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How much professional indemnity insurance do I need as a software conultant?
The level of professional indemnity insurance you require as an software consultant depends on the level of risk involved in your work, the size of your business and the requirements set out in the contracts you work to. When choosing a limit, it’s important to consider the realistic worst-case financial impact of a mistake, including legal fees, compensation, and potential downtime. If you’re unsure, speak to one of our software consultant experts on 0800 640 6600.
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Why should I insure with Markel?
Markel has over 25 years’ experience insuring software consultants – and understands how legal claims can disrupt your life professionally and personally. That’s why we aim to deal with all claims fairly and swiftly.
We are a division of Markel International, a Lloyd’s and London market insurer that wrote gross premium totals of $1.2 billion in 2018.
Prefer to speak to someone? Call on 0800 640 6600 to speak to an insurance expert, who will answer your questions and guide you through the insurance we offer, step-by-step.
Alternatively, get an online quote in 90 seconds and call Markel if you require any clarification on our software consultants insurance.
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How are Markel Direct regulated?
Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
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