What IT Professionals need to know about Professional Indemnity Insurance


Being an IT professional in today’s digital world doesn’t come without its risks. All businesses require some form of insurance in order to make sure they’re protected if things go wrong. As great as technology is, it’s not always 100% reliable. Therefore, when you’re offering any kind of technological or IT services, you need to make sure you’re covered if things do go wrong.

One way to do this is with professional indemnity insurance. Especially designed for those offering advice and services within industries such as IT, legal and financial, it can protect you against potentially high liability claims.

Understanding professional indemnity insurance

Professional indemnity insurance protects you against claims made against you due to either:

  • Negligence

  • Problems with the work you carried out

  • Lose important documents or data

Working in IT, you know all too well that mistakes and problems can occur. Through no fault of your own, an important document you were working with for a client could suddenly disappear. Technology isn’t always predictable, but if you lose an important document, the client could make a claim against you. Professional indemnity insurance would help ensure you could afford to settle the claim.  

Is it something you really need?

Obviously, professional indemnity insurance is going to prove useful if something goes wrong, but is it essential? Well, in order to answer that you need to think about how much spare cash your business has. Would you be able to afford to pay off a claim out of your own pocket? If the answer is no, then yes you absolutely need some form of insurance.

You also need to consider the cost of the claims you’re likely to face. In the IT and technological sectors, mistakes and problems that do occur are typically going to have severe consequences. Whether it’s losing important data or making a mistake when setting up computer systems; the consequences can cost your client thousands of pounds in damages. So, compared to other sectors, the claims IT professionals face are significantly higher.

Protecting yourself with professional indemnity insurance doesn’t just give you financial protection, it also gives you peace of mind when carrying out work for clients and businesses. There’s also the added benefit it can act as a great marketing tool. If businesses see you are properly insured, they’ll feel a lot safer when choosing your services.

So, if you aren’t currently covered with professional indemnity insurance, now would be a good time to invest in a reliable, comprehensive policy. The IT sector may be in demand, offering excellent job security, but just one bad job can jeopardise your career if you can’t afford to fix it.


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