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Do IT consultants need insurance?
IT consultants should get professional and general liability insurance. The duties of an IT consultant like testing, building, installing, repairing or maintaining tech systems may lead to problems when working with clients who take issue with certain IT approaches or who don’t get the results they expect. Obtaining insurance for IT consultants is a great way to protect yourself while continuing to provide beneficial services to clients.
Other occupations Hiscox insures
Insurance coverage available for IT professionals
For most IT professionals, there are three main types of insurance policies worth considering, each of which provides its own unique aspects of protection to assist you in running your business as smoothly as possible.
Professional liability insurance for IT professionals
Professional liability insurance—also called errors and omissions or E&O Insurance—provides numerous benefits to IT professionals, including coverage for personal injury (libel and slander), negligence and claims against past-rendered services, including defense costs. Although events such as fraudulent acts, property damage and bodily injury aren't covered by technology professional liability insurance, this type of insurance is very important for anyone who regularly provides professional services or advises clients.
Consider this scenario. A website designer finished a coding a new site design for an ecommerce company. The day the new site was launched, a bug in the code caused the site to crash. The site was down for three days while the problem was diagnosed and corrected. The client sued the designer for the income lost during that time. Professional liability insurance could protect your website design firm against claims of negligence and will appoint an attorney to defend you, if needed, even if you haven’t made a mistake.
When a client reacts negatively to your work, accuses you of breaching a confidentiality agreement or otherwise feels as if they or their business has been damaged in some way by the services you provide as an IT professional, you could be sued. Potential problems for professionals can come in many different forms, but you can protect yourself by getting professional liability insurance for IT consultants.
General liability insurance for IT professionals
In addition to times when IT professionals can benefit from holding professional liability insurance, there are some scenarios that are not typically covered under this type of policy. General Liability—also called commercial general liability (CGL)—covers technical consultants against property damage, claims of bodily injury and any associated medical costs.
Here’s how general liability could protect a programmer’s business. A computer programmer works from home one winter day so that he can accept a business delivery. The delivery man slips in the programmer’s icy driveway, injures his back and demands the programmer pays the hospital bills. General liability insurance can protect computer programmers against third-party claims of bodily injury, associated medical costs and property damage.
Though your property won't usually be covered under general liability insurance, damage sustained to third-party property typically will be.
Business owners policy (BOP) for IT professionals
For some professionals, a business owners policy (BOP) may make sense. BOP is a combination of general liability and business property insurance and is often used to provide coverage to small businesses with the aim of protecting valuable equipment.
A business owners policy could protect a computer programmer who, for example, spilled his coffee on his high end computer system causing irreparable damage. The business owner’s policy could cover the cost to replace the system, letting the programmer get back to work.
Why do IT professionals choose Hiscox?
At Hiscox, we understand just how much work goes into working in information technology. Whether you've opened your own business or are working as a consultant, we can help you grow your career by reducing risk with our insurance policies, allowing you to focus on what really matters—providing beneficial services to your clients.
Here are five reasons why IT consultants choose Hiscox above other providers for professional and general liability insurance:
- Flexible payment options: We offer you the option of making monthly payments (with no additional fees) to help you manage your cash flow.
- Tailored insurance: We specialize in businesses like yours and tailor coverage to the risks in your field.
- Claims responsiveness: When a covered claim is reported, we will immediately defend you—even if the claim has no basis—and, if necessary, appoint an attorney.
- Coverage for contracts: Our IT professionals insurance coverage satisfies most standard contract insurance requirements.
- Worldwide coverage: We protect you for work done by your business anywhere in the world as long as the covered claim is filed in the United States, a U.S. territory or Canada.
- Passion for service: Agents knowledgeable about your business concerns will provide you with excellent service—4.7/5 people surveyed recommended us.
Ready to learn more about how Hiscox insurance can help mitigate risk with IT professionals insurance coverage? Get a fast, free quote now and get that Hiscox confidence behind your business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.
Hiscox Customer Reviews
Eric, Los Angeles, California
“Excellent service by Hiscox”
Service for my claim was incredibly accurate and quick.
Amy, McKinney, TX
“Excellent service by Hiscox”
Very knowledgeable salesperson
“Easy to work with”
The agent I spoke with took time to explain different policies & I like being able to purchase by the month
Eldon, West Hollywood, CA
“One stop shop”
They have a more comprehensive and complete insurance policy, that's why I went with them. I didn't want to have two companies for two different products. I got General liability insurance and Professional liability insurance.
Patricia, Biloxi, Mississippi
“The clincher in business deals”
They were patient with me as I stressfully struggled with building owners, to open my business. Hiscox provided professionalism and quality that got everyone’s approval for my business to open.
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My customer service representative was very knowledgeable and helpful and made my experience a pleasurable one.
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.