Professional Indemnity for IT Consultants - Contractors Insurance Australia

May 27, 2020

Information technology (IT) is described as the industry umbrella for all computer science-based professionals. There are various roles within IT such as software coding, consulting with clients, providing advice on the best and most cost-effective software, installing or configuring programs on devices or giving troubleshooting advice over the phone. As you work in close partnership with clients, it is important to consider the associated risks.

IT consultants give expert advice as part of their role. If this advice leads to a financial loss, it can negatively impact the customer and may result in legal consequences. People rely on
industry expertise for accurate advice and if a mistake or negligence is recognised, the outcome is not appealing. If a client suffers a financial loss, they may deem you or your company as the responsible party considering that you provided the initial advice. If this advice provided is evaluated as being negligent, you could be at risk of being sued by a Third Party (your customer). Other circumstances that professional indemnity insurance typically covers is the accidental omission of important information while providing services or advice and breach of professional duty. If a claim is made against you, professional indemnity insurance typically covers the costs relating to the claimant’s successful payout if you are deemed as liable such as compensation and legal fees. IT consultants are more susceptible to the possibility of a legal issue arising due to the amount of advice provided within their job role. Without adequate insurance, you could be leaving yourself vulnerable to the burden of hefty legal expenses. Not only can a legal claim affect your wallet, but it can also be damaging to your reputation. Professional indemnity insurance for IT workers can seek legal investigation and action within your case, helping you to defend your business. Professional indemnity insurance generally entitles you to legal advice and an experienced insurance team to support you through the legal and financial proceedings.

The financial health of a company is the backbone of its operation. Having to pay out of your pocket for expensive legal fees and possible compensation payment is not good business. Our
broker team at Contractor Cover can recommend the most suitable insurance option for your IT company. The cost of professional indemnity insurance depends on the size of your business and the daily risk factors associated with your job role. It is usually very affordable. Keep in mind, some companies require you to hold professional indemnity insurance before they agree to
collaborate with you. Companies may not allow you to commit to a contract or begin work if you do not hold a valid insurance certificate. Purchasing professional indemnity insurance is a smart and safe move for various job roles.

Call Contractor Cover today on 1300 GETCOVER (1300 438 268) to see if professional indemnity cover is necessary for the financial security of your IT company or get an instant quote from our website.

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General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, please consider its appropriateness. You should also consider our disclosure documents, which include our Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for some products.
*Retail clients are individuals or those purchasing an insurance product for use in connection with a small business where the product is a designated retail product (eg motor vehicle, home buildings, home contents, personal and domestic property, sickness and accidental and travel insurance). All other clients are wholesale clients.

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