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IT Consultant Insurance Coverage Explained

IT Consultant Insurance Coverage Explained

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Who needs IT Consultant Insurance?

Information Technology (IT) def:  the application of computers to store, study, retrieve, transmit, and manipulate data, or information, often in the context of a business or other enterprise. Source: Wikipedia

The information technology sector is ever growing and you very well might find yourself in it. Some information technology professionals that would require IT Consultant insurance would include, but are not limited to:

  • IT Analyst
  • IT Consultant
  • IT Trainer
  • Custom Programmer
  • Software Consultant
  • Database Manager
  • Computer Programmer
  • Computer Consultant
  • Database Manager
  • Custom Software Developer

What Does IT Consultant Insurance Cover?

IT Consultant Insurance Coverage Explained
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The main cover that IT Consultant Insurance provides is coverage in the event you should find yourself accused of providing a faulty professional service or advice. IT Consultant Insurance is very similar to other Errors & Omissions insurance policies, but is tailored to the unique needs of the information technology industry. The following covers are some that are usually included in IT Consultant Insurance policies:

Additional insurance covers that can often be packed together with IT Consultant Insurance, and helps to provide well-rounded coverage are:

Why Do I Need IT Consultant Insurance?

Here are some examples that help illustrate the need for IT Consultant Insurance:

Stolen Laptop: You are retained by a large organisation, and keep a database of the organisation on an encrypted laptop holding personal and private information about the organisation’s employees. News breaks that the laptop is stolen and the organisation’s employees start a class action lawsuit against you for jeopardising their privacy and putting them at higher risk for identity theft.

Data Backup:  You backed up all your client’s records on an external hard drive and then it fails causing all the data to be lost. Your client could make a claim against you for using improper backup procedures.

Client gets Hacked: A client hires you to review their network security and implement new procedures where needed. A few months after you’ve completed your work, the client’s network gets hacked and they lose revenue from the site being down. Your client can make a claim against you for faulty work.

Faulty Recommendation: You recommend a point-of-sale management system to your client that you are positive will integrate with their current accounting system. Unfortunately, you were wrong and now they’re suing you to recuperate the costs of the software, lost time, and lost sales.

Need IT Consultant Insurance Coverage Explained? Contact an ALIGNED Advocate today at 1-866-964-7186  today to obtain a quotation for your IT Consultant insurance.

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