do it professionals need insurance
DESCRIPTION
As an IT professional working for clients, you cannot ignore the possibility that a claim may be brought against you during the course of your career. Professional Indemnity (PI) Insurance provides protection from this for claims and allegations of a claim and covers both legal costs and settlements or awards for compensation.TRANSCRIPT
Do IT Professionals Need Insurance?
I.T professionals need Insurance
The simple answer is: yes. Professionals are only human and mistakes do happen. In today’s increasingly litigious society, if you are a professional that performs work with the potential to cause damage (financial or otherwise), then you can be held liable for allegations of an error, omission or even negligence.
As an IT professional working for clients, you cannot ignore the possibility that a claim may be brought against you during the course of your career. Professional Indemnity (PI) Insurance provides protection from this for claims and allegations of a claim and covers both legal costs and settlements or awards for compensation.
Professionals that needs PI Insurance
• IT & T Contracting and/or Consulting
• IT & T Education and Training
• IT & T Support and Help Desk Services
• IT & T Recruitment Consultants and Placement Services
• Website Development, Design, Administration and/or Hosting
• Website Development, Design, Administration (No Website Hosting)
• Software Maintenance Services
• Reseller of Third Party Software and Hardware
• Software Maintenance Services
• Reseller of Third Party Software and Hardware
• Hardware Sales (Own Developed)
• Data Processing/Warehousing and/or Data Communication Services
• Database Programming and Design
• Software Development, Design, Analysis, Testing, Programming and/or Sales
Professionals that should consider PI Insurance• LAN and WAN Providers/Developers, Design and/or Support Services
• Application Service Provider
• Multimedia Services
• Network Security Advice/Third Party Product Sales
• Telecommunication Services
• Internet Service Provider
• ERP Implementation and/or Maintenance
• Manufacturing Process Control Systems
• Production Line Manufacturing Systems (incl. SCADA/PLC)
• Fire, Security and/or Emergency/Safety Systems Development, Maintenance and/or Consulting
• Facilities Management and Outsourcing Services
• System Integration
What are the risks of no Insurance?
As an IT professional, you would carry out your services as per the scope of works requested by your client. But if somewhere along the line something goes wrong and your client gets disgruntled and claims a failure of your service/s then they can potentially sue you for your failures – real or otherwise.
Having a claim brought against you can result in enormous financial costs. It is not uncommon for claims to take many years to settle, incurring a large bill for court costs and legal expenses, even if you have been successful in defending the claim.
How much does Professional Indemnity Insurance cost?
As with any form of insurance, the cost of Professional Indemnity Insurance can vary dramatically depending on the size and type of business insured.
For IT consultants operating as a sole trader the cost of insurance can be from as little as $600, whereas for larger organisations the costs can climb well into the thousands.
To find out more about Professional Indemnity Insurance for IT professionals and to get a quote online, click here. If you would like to speak with an adviser, call us on 1300 739 861.
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