IT Consultants Professional Indemnity Insurance

Unlike many traditional professions such as Accountants, Solicitors and Surveyors, in the main there is no compulsory need for IT companies to carry IT Consultants Professional Indemnity Insurance. 

However, many are contractually obliged to maintain this cover, and from experience, exposure to claims for negligence for this emerging profession is considerable.

Due to the diversity in the services offered by IT Consultants, which can range from low level operational tasks (such as book keeping software) to mission critical business products (control systems for the operation of production lines) premiums and rates can vary considerably. In the event that we need additional information to enable insurers to evaluate your risk exposure, you can be sure that once completed, you will be receiving terms from some of the leading insurers for IT Professionals, providing sound cover at competitive premiums.

Claims Examples

Litigation relating to IT companies has increased considerably over recent years. Some examples of claims include the Installation of a booking and accounting system at a hotel which caused one of our comparison insurers clients a major headache. The hotel threatened to make a significant claim unless the Insured refunded them for the cost of the software and paid significant damages. The insurer and their advisors investigated and evaluated the actual facts. It seems the complaint arose from the fact that the hotel staff did not properly understand how to use the system. Insurers wrote, rebutting the claim made against their Insured and offering extra training. Nothing further was heard from the claimant!

In another case, the insured was a self-employed technician who agreed to perform services for a client, including making a back up of their hard disks. In the course of producing the backup, the insured accidentally overwrote all of the data on the hard drives belonging to his client. The insured employed a data recovery specialist, who confirmed that the data was irretrievably lost. Insurers investigated the claim in view of the speculative nature of the losses. A settlement was agreed with the insured's client at a quarter of the amount claimed without the necessity and cost of litigation.