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Business Insurance for Professionals in IT and Software
Web developers, SaaS providers and IT consultants perform highly skilled work for clients who can be demanding. Although there’s less physical interaction than in some professions, there are still numerous risks. So IT and software contractors need to choose the right insurance package for their business need.
Whether you work in website development, IT infrastructure or offer Software as a Service (Saas), you'll face risks specific to your profession and in some cases more general liabilities.
Because of the highly technical nature of IT work, contractual disagreements can pose risks. Software developers, designers, managers and clients can all have slightly different interpretations of a brief, leading to contractual disputes.
There is also the possibility of data breaches, intellectual property disputes and public liability concerns. Customised business insurance for IT contractors can help guard you against these risks, helping keep you up and running in the event of trouble.
What can Business Insurance for IT and Software professionals offer:
What insurance do IT contractors need?
As an IT contractor, you may work independently, so you need to be covered for possible mishaps or misunderstandings arising in your work. You may not be at fault, but the right insurance package can protect you against unforeseen risks.
Risk scenarios include third party injuries, data breaches, contract disagreements and equipment loss or damage, among other things. Aon can arrange business insurance for IT contractors which includes professional indemnity insurance as a core cover. This can protect against allegations of negligence which can result in compensation claims.
You can then choose to customise your policy with a range of optional covers. For example, if your client's equipment is inadvertently damaged in the course of your work, they may hold you responsible. If somebody is injured, the consequences could be even more serious. Public liability insurance can help protect you against compensation claims in these situations.
Additionally, IT contracts can be complex to specify, and disputes can easily arise over completion conditions. Including professional indemnity insurance in your insurance package is an important consideration to help protect against the consequences of this.
What is professional indemnity insurance for IT contractors?
The work of IT contractors is judged by its results, but opinions can vary on how to make an assessment. Ideally, a clear specification will have been drawn up before work starts, so everyone can agree on the progress and completion of the work.
However, IT work can be complex and hard to predict in full, so disagreements can arise between you and your clients. Professional indemnity insurance can help protect you against unexpected costs or legal proceedings in the event of disputes with clients about poor advice or services.
With the best will in the world, mistakes can happen. Customised insurance solutions can help cover you in case of eventualities.
Do web developers need insurance?
Website development is a fast-paced field with changing technologies and expectations. In these circumstances, it’s possible for disputes to arise with clients over contracts. And because of technological developments and inconsistencies, it's easy to make mistakes with implementations. The idea of "good design" can be very subjective.
Fortunately, it’s possible to customise insurance packages to meet the needs of small businesses and self-employed designers and developers. As a website development contractor, you may need to consider professional indemnity insurance. This can protect you against costs arising from contract disputes, missed deadlines or quibbles over the quality of work.
Insurance for your business contents is also an important consideration to help your business operate smoothly.
What can an IT consultants’ business insurance package cover?
IT consultant business insurance can cover a range of liabilities. The exact nature of the package will depend on the individual contractor's requirements. Typical types of cover include:
Do software developers take out insurance?
If you work as an independent software developer, you need to make your own arrangements for insurance. Aon can arrange a customised package of insurance to meet the needs of your business. You can select covers such as professional indemnity and public and product liability.
Professional indemnity insurance can guard you against compensation claims arising from missed deadlines or accusations of faulty work.
Public and product liability can cover you for injury or property damage sustained by third parties in relation to your work or products you sell or provide.
Your laptop or desktop computer, tablets, phones and other equipment are essential to your work. So you should think about cover for equipment damage, loss or theft.