Small businesses, large businesses, independent contractors, tradies: do they all require the same insurance cover? While many enterprises have a lot in common, it’s no secret that every business—and every industry—operates differently, and their insurance needs will therefore vary. When it comes to information technology (IT), it is only in recent years that positions in this field have begun to grow at their current rate. In today’s technologically-heavy world, IT contractors are plentiful. It is these individuals who get businesses and private users online and help them maintain secure, functioning information technology systems. Like any business or provider of services, the IT contractor needs to protect him or herself. What insurance covers do IT contractors need?
The Work of the IT Contractor
An IT contractor is an independent entity, working for him or herself at a variety of sites and often on a flexible schedule. From small one-off projects to major network setups and maintenance, an IT contractor can provide a range of services in the information technology field. The services can be design-oriented such as with web development or application building, or high-level tech services such as systems troubleshooting or data security. Because of the varied and complex nature of their work, the IT contractor’s main focus can be hard to determine, insurance-wise. Is it a product or is it a service and advice that they offer? Or is it both? Because an IT contractor commonly provides an amalgamation of both, including ongoing services, development, and updates, the position requires insurance cover which reflects this.
Risk Management in the IT Business
Professional Indemnity cover will be an important policy for an IT contractor to obtain. This protects the contractor in case any claims are lodged against them, covering damages or associated legal costs. Professional Indemnity insurance is vital in the IT world for many reasons, including wrong advice, accidental breach of copyright or loss of data. Technology is increasingly dependable, but errors do occur, and the wise IT contractor will make sure their assets are covered from potential client claims.
Public Liability cover is also a good way to manage the risks associated with the IT business. This protects a contractor in case a member of the public is hurt or if their property is damaged as a direct result of the IT contractor’s service, product, or work completed.
With the increase in cyber attacks and data theft/infiltration, Cyber Risk insurance may also be an option for the IT professional, but more likely this is a cover which a contractor should suggest to his or her clients. Of course, without such cover, the client may still try to hold the IT contractor liable for any data loss or privacy breach; further evidence that Professional Indemnity cover is a smart insurance choice for every situation.
IT Contractor & Insurance Broker: A Smart Partnership
Depending on the circumstances, IT contractors may want to obtain additional insurance policies. To make the very best decision for you, it’s highly advisable to partner with an experienced insurance broker. A broker can help focus on your unique situation, better identifying your risks and locating the very best cover to keep you—and your business—fully protected. If you’re seeking a top quality insurance broker with years of experience, the team at Macey Insurance Brokers can help. Give us a call now.
