IT consultant insurance can allow you to reap the benefits of a consulting career, without being exposed to the legal risks and liabilities that come with it. While working as an IT consultant has significant benefits, accompanying liabilities can drive consultants into bankruptcy, or court. Thanks to IT consultant insurance, you no longer need to choose between the freedom and excitement of consulting, and the stability and safety of a permanent office position. Read on to find out what professional liability insurance for consultants could do for you.
Reasons to Invest in IT Consultant Insurance
There are many reasons to invest in IT consultant insurance. The following are some of the major reasons savvy information technology professionals won’t work without computer consultant insurance.
They happen to everyone. The margin for error can be very slim when it comes to information technology. This is why IT consultant insurance is so important. A single misplaced letter or symbol among thousands of lines of code can wipe out databases and cause significant business interruption. IT consultants are responsible for losses incurred due to these mistakes. Without a computer consultant insurance policy, you could be liable for thousands, even millions of dollars of loss.
Many people don’t realize the enormous liability risks associated with malware and viruses. Consultants can be held responsible not only for introducing a virus into a system, but for merely allowing it to happen. One of the unfortunate realities of the IT business is that technology is changing so fast that laws and general business policies can’t keep up. Nor can an IT professional afford to spend all their time researching risks. Professional liability insurance for consultants from a reliable technology insurance company could help protect you against the ever changing vulnerabilities and potential lawsuits.
3) Misappropriated blame
Just as many company stakeholders don’t understand complex computer systems, they may not understand who’s responsible when things go wrong. Proving responsibility can be difficult. Luckily, with good IT consultant insurance you have protection against frivolous lawsuits. Not only may potential plaintiffs think twice before suing consultants with professional liability, your policy could cover legal fees and even damages should you lose the case.
4) Your clients may require it
Many companies and landlords require contractors to have insurance before they do work on a property. It’s the same for IT consultants. Some companies provide insurance for IT consultants as part of their contracts, but many don’t. In order to get in the door at medium- and large-sized firms you may need your own computer consultant insurance.
More Benefits of Professional Liability Insurance for Consultants
Errors aren’t the only cause of insurance problems for IT consultants. Unhappy clients can also sue for omissions – failing to properly complete the original scope of work. It’s not unheard of for unscrupulous clients to claim omissions in order to avoid paying the full fee. In these instances, having professional liability insurance for consultants could be an extremely effective deterrent, saving you countless hours and dollars, and allowing you to focus on what you do best.