Professional Indemnity Insurance for IT consultants

An insurance broker can provide specialist advice to ensure that you have the right protection for your business.

Why choose Hensure for PI insurance

01

Personal Service

Our business is not a call centre, but instead provides a personal service and dedicated team to assist with your queries.

02

Experienced Team

Our team has a wealth of experience and knowledge to help you and your business get the most appropriate cover for your needs.

03

Online System

Our full 24/7 quote and buy facility allows you to run a personalised quotation, at a time that suits you and your business.

Professional indemnity insurance for IT Consultants needs careful consideration.

As is the case with all of our professional indemnity insurance, IT consultants will work closely with their own account manager or handler, who will get to know them personally and understand the insurance requirements.

Normally, the work carried out by IT companies falls into one of the following areas:

  • Packaged hardware/ software provision
  • Development of bespoke solutions
  • Consultancy/ project management
  • Outsourcing
  • IT recruitment
  • Internet services

Some insurers have identified the following disciplines:

  • Hardware: sales of own brand, distribution of other brands, installation, maintenance.
  • Software product sales: shrink wrapped/ off-the-shelf software, customisable software.
  • Software services: installation including configuration (no code changes), customisation (including code changes), developing bespoke applications, maintenance.
  • Services: consultancy, contract staff, facilities management, training, internet services (excluding web hosting), web hosting.

Professional Indemnity insurance for IT consultants, provides reassurance that should a claim be filed against you for your advice or poor service, you will have financial protection for the legal fees and any compensation claim that you are required to pay. If you require any further advice or information, do not hesitate to contact us.

professional indemnity insurance for IT consultants | PI insurance.

  • Company Size – this is mainly established in two ways, the number of directors and staff and the gross annual income of the firm.
  • Qualifications and experience – underwriters will look for a mix of qualifications and experience and a CV of the directors or principals will often help underwriters when they assess the risk.
  • Potential for loss – underwriters will want to try and understand what the immediate financial loss would be and other consequences. If data is incorrect, a system fails or becomes unavailable for any period of time. Experience has shown that the majority of the litigation against IT companies occurs because of:
    • Failure of the software/system to do the job which it was intended for.
    • Failure to deliver the system on time.
    • Failure to deliver the system to budget.
  • As a result of this a client may either:
    • Withhold some of the fees due or claims the return of the purchase price.
    • Claim for a direct financial loss arising from negligence of the IT company and perhaps even for consequential losses also.
  • Written contracts – underwriters will be keen to see a copy of the IT contractor’s standard terms and conditions as these would be the first line of defence in the event of a claim against the IT contractor when assessing the extent of their contractual liabilities. Insurers would expect the terms and conditions to include consequential loss exclusion.
  • Claims experience – the claims experience is an important determining factor in the assessment of risk. This information usually reflects the type of work carried out by a firm. It also reflects the quality of the firm’s work, staff, internal risk management and experience.

A typical Professional Indemnity Insurance policy for IT consultants will normally cover the following areas:

  • Breach of Civil Liability
  • Negligent act, error or omission
  • Negligence of sub-contractors
  • Irrecoverable fees
  • Rectification and loss mitigation costs
  • Bodily injury or property damage arising from breach of professional duty
  • Defence costs
  • Unintentional intellectual property rights infringement (other than patents)
  • Unintentional breach of confidentiality
  • Unintentional defamation
  • Loss of third-party documents or data
  • Computer virus transmission
  • Court attendance costs

Your policy coverage may vary between insurer.

Professional Indemnity

  • Professional Indemnity provides cover for claims that arise as a result of the work you have completed or advice you have given.

Public Liability

  • Public Liability provides cover should members of the public receive an injury or property damage due to your work. This protects your business should a compensation claim be made, also covering any legal costs that result from this.

Employers’ Liability

  • Employers’ Liability provides cover for compensation claims and associated legal costs, arising from employee injury or work-related illness.

Cyber Insurance

  • Cyber Insurance provides support in the event of cyber-crime and unintentional data breaches, offering cover against the cost of revenue and fines.

Directors and Officers

  • Directors and Officers insurance policies protect you financially against any claims that are made against you personally in your position as a director, partner or officer of your business.

Legal expenses insurance

  • If you were involved in a legal battle, knowing that any money you spend on legal bills would be reimbursed could make all the difference. Legal expenses insurance does just that. It ensures that your business remains financially stable after a legal case by helping to compensate the business for incurred costs.

 

Contact us to find out more about the right cover for your business.

Contacted Hensure regarding Public Liability and PI insurance. So glad I did! Rhian was so professional, friendly, and helpful. Definitely recommend anyone to contact them first.

Jackie Skeer, Skeer Building Consultancy Ltd

PI insurance – Everything you need to know

Professional Indemnity Insurance covers legal expenses incurred in defending a claim against you, even if the claim is false. It will also cover the compensation awarded, should they win their case, and the cost of any losses that they incurred as a result of your negligence.

If your business ceases operations, there is still a chance that a claim could be made against you in the future. PI Insurance can provide run-off cover to ensure that these claims are still covered and you are still protected.

You can buy short-term PI Insurance cover, but it comes with a significant risk that must be considered.

Professional Indemnity Insurance works on a claims made basis, meaning that the insurance policy that you hold at the time the claim is made is responsible for the claims and any associated costs. If you cancel the policy after your contract has ended, and a client then makes a claim against you after this time, you do not have any insurance to cover this and will be solely liable.

You must hold insurance at both the time the incident occurs, and the time that the claim is made, to be protected.

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R K Henshall & Co Ltd, The Grove, Mill Lane, Wheelock, Sandbach, Cheshire CW11 4RD.

Copyright © Hensure | Hensure Business Insurance Consultants is a trading name of RK Henshall & Co Ltd. www.rkhenshall.com. RK Henshall & Co Ltd are authorised and regulated by the Financial Conduct Authority. Registration Number: 0308865. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, A.Brown FCCA. Company Secretary: A.Brown FCCA. www.fca.org.uk. Written quotations, policy terms, conditions and exclusions are available on request. Privacy policy, Cookie policy, Terms, Complaints Procedure, Consumer Duty Statement

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