IT contractor insurance IT contractor insurance

Q: What insurance do I need as an IT contractor?

Professional indemnity insurance Public liability insurance Business contents insurance (also knowns as equipment insurance) Cyber insurance

Q: Why do IT contractors need insurance?

The cost of a claim against you could potentially be very expensive. Clients will often insist upon some level of cover (of professional indemnity insurance in particular). To expand on the first point: We all face risk when working. From hot coffee on important equipment to disastrous coding mistakes, accidents happen and when they cause damage or loss to someone, a claim may arise. When you’re an employee, your employer is responsible for arranging business-related insurance. But as a self-employed professional, it’s all on you. Because the nature of being an IT contractor (as the name suggests) is heavily contract-based, this leaves you particularly vulnerable to contractual risks. For example: If the terms of a contract cannot be met for whatever unintentional reason, this would leave you as the contractor liable for the alleged cost to the client of your contract not being met. If something were to go wrong during the course of your work for the client (e.g. you accidentally breaking a system, causing downtime), again, this could be expensive for the client and leave you liable for picking up the cost. To expand on the second point: Clients understand the risks faced by a contractor and how expensive a claim could end up being. This means that regardless of the financial risk to you of facing a claim, you may find that being uninsured means you miss out on being considered for contracts altogether.

Q: What does professional indemnity insurance cover?

Professional indemnity insurance covers claims made against you by clients due to alleged contractual failings on your part, causing the client to lose money. Key examples of the types of claim are: Failure to meet contractual obligations, e.g. Project delivery timelines Project completion Accidental Loss of documents or data Breach of confidentiality Intellectual property infringement (covered by media liability which comes as standard with Superscript’s professional indemnity cover) To find out more about what professional indemnity insurance covers, check out our guide .

Q: How much professional indemnity insurance do I need as an IT contractor?

The level of professional indemnity cover you will need as an IT contractor will depend on the details of your contract with your client businesses. Some clients will specify that they wish you have a certain minimum level of cover before entering into a contract with you.

Q: Do IT contractors need public liability insurance?

This depends. If you are working solely from a home office, for example, and never coming into contact with other people while working, then you may feel that public liability isn’t worth having. However, if you’re working among other people at all - whether at a client’s office or even a cafe, it’s definitely a cover to consider. To find out more about what public liability insurance covers, check out our guide .

Q: What other insurance does an IT contractor need?

Beyond professional indemnity insurance and perhaps public liability insurance, other covers that may be relevant to IT contractors include: Business contents insurance Cyber insurance

Q: Do IT contractors need employers' liability insurance?

If you are a sole trader or freelance IT contractor, then no, you do not need to take out employers' liability cover. However, if in the course of doing your business you hire anyone to work for you, including other contractors, freelancers, temporary or part-time staff, you are legally obliged to have employers' liability cover .

Q: Is IT contractor insurance tax deductible?

In short, yes. HMRC defines all business insurance premiums as 'allowable expenses', meaning that you can deduct the cost of your contractor business insurance from your taxable profits for the year. You just need to remember to keep your receipts and policy documents to prove the expense should you be audited.

Custom build your policy with the perfect mix of covers to suit your niche in IT. Professional indemnity, public liability, cyber cover... it's your choice.

Be quote confident. We'll beat the price of any like-for-like quote. T&Cs apply.

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IT contractor insurance quote

From£

11.73

per month

Why choose Superscript for IT contractor insurance?

In an increasingly digitised economy, the work of IT contractors can often be the difference between a business thriving or failing. If you work in this crucial sector, then Superscript are here to provide you exactly the cover you need to work with confidence, knowing we've got your back.

10% of software and IT service businesses (including IT contractors) paid £11.73 a month or less for their Superscript insurance between January and March 2023.

Professional indemnity covers mistakes in your services
Cyber cover protects you in a digitised world
Add employers' liability cover if you need it
See your policy documents instantly
Adjust your policy any time, without fees
Hassle-free claims and UK-based customer support

Business insurance for IT contractors

1

Professional indemnity insurance

Our professional indemnity insurance is one of the most innovative covers available online. It is ideal for those working in software and IT as it provides advanced, all-round protection for the business and products that you build. It covers for any mistakes arising from your services, including compensation payments if your client suffers financial loss, fines, contract disputes, legal costs, IP and copyright disputes.

2

Public liability insurance

Public liability insurance is a cover to consider if you ever work around other people. If you accidentally injure somebody, or damage their property, you could end up with an expensive claim against you.

3

Business equipment insurance

Our business equipment cover can protect the equipment that is vital to keeping your business going. For IT contractors, this could include everything from your laptop and phone to hi-tech hardware such as servers.

4

Cyber insurance

Protecting customer and user data is non-negotiable, with cyber-attacks on the rise and the GDPR now in force. Even with the latest security solutions in place, sometimes a breach is unavoidable, which is why cyber liability cover is so important. We will cover any compensation you have to pay as well as penalties and legal costs.

Our cyber policy also includes a 24/7 industry-leading breach response service, helping you get to the bottom of things quickly and avoid damage to your reputation.

Once you've completed a quote, you'll be able to view a summary of cover. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.

Be quote confident

We're big on fairness. So if you find a lower price for a comparable quote, we won't just match it – we'll go one better and beat it.

So even better than apples to apples, apples to better apples. We're talking Galas to Braeburns.

As you'd expect, T&Cs apply.

IT contractor insurance claims

There are various different types of insurance claim that you may have to make as an IT contractor, so here are a few examples of specific claims that would be covered:

Broken laptop

For IT contractors, especially freelancers, keeping your computing hardware in working order is crucial. If the laptop you rely on is smashed or damaged by water, then Superscript's business equipment insurance will cover the cost or repairing or replacing your hardware.

Cyber attack

You are the victim of an attack by cyber criminals who gain access to your clients' sensitive information. Your cyber insurance includes 24/7 industry-leading breach response support as well as covering your legal and compensation costs and any regulatory fines.

Bad advice

You are hired as an IT contractor by a company and the professional advice you give them puts too much strain on their IT systems, causing downtime and losing the company money. Your professional indemnity insurance will cover your legal and compensation costs in the event of a claim.

Spilt hot coffee

During a meeting with a client, you spill your hot takeaway coffee all over the client and their equipment, causing them burns and damaging their laptop. Your public liability insurance will cover your legal and compensation costs in the event of a claim.

How do IT contractor insurance claims work?

The below is a good guide to the process and timescales you can expect when you need to make a claim under your policy.

If you’re ever unsure whether you can or should claim, it’s best to get in touch and we can let you know.

1

Notify us of the claim

Contact us by email at claims@gosuperscript.com, by 24/7 freephone on 0800 772 3059 or by logging in to your customer portal.

Ideally this should be done as soon as possible and within 30 days of you becoming aware of anything which you think may be covered by your insurance.

A good indicator of whether or not to let us know is if there’s an issue which may require a payment to be made on your behalf.

2

If you've suffered a cyber attack, call our 24/7 breach response helpline

If you choose to include Superscript's cyber insurance in your policy, you have the support of an industry-leading breach response team in the event that your business is the victim of a hack or data breach.

You will be guided through your breach response by legal experts, cybersecurity experts and will have access to call centre support to notify all your customers who have been affected by the breach.

3

We'll get on the case

We’ll acknowledge your claim within 24 hours, and sometimes in as little as 30 minutes! This means you’ll receive email confirmation of your Superscript claims reference and contact information should you need to speak to us.

We will then reach out to you within 48 hours to request any extra information we need to progress your claim.

We’ll keep you updated on the next steps as the claim progresses.

4

A decision is made

We’ll let you know if your claim is successful or not. At Superscript, if your claim isn’t covered, we will always try to point you in the right direction and support you as best we can in getting back to normal.

Read about the most common reasons claims aren't paid.

If your claim is successful, once we have all the documents we need, we will aim to settle claims such as accidental damage, theft and lost equipment within 5 working days.

IT contractor insurance FAQs

What insurance do I need as an IT contractor?

Why do IT contractors need insurance?

What does professional indemnity insurance cover?

How much professional indemnity insurance do I need as an IT contractor?

Do IT contractors need public liability insurance?

What other insurance does an IT contractor need?

Do IT contractors need employers' liability insurance?

Is IT contractor insurance tax deductible?

We insure thousands of innovative businesses

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