IT consultants have become essential as companies across various industries increasingly rely on computer systems for their internal operations, to interact with customers, and otherwise conduct their business. Designing and setting up a system according to client needs and requirements is the first and most important step, but reliable maintenance and quick solutions when something goes wrong are just as important. No matter how skilled and diligent you and your employees are, something will happen.From lost data to a crashed system, if these situations result in losses for your client, you could be sued and potentially held liable for damages. IT consultant insurance is the best way to protect your business against such scenarios and more.

This guide will provide all the necessary information about IT consultant insurance cost to choose the best policy for your business.

We Cover in This Guide

• How much does IT consultant insurance cost?

• What is IT consultant insurance?

• What does IT consultant insurance cover/not cover?

• Benefits and risks

• Types of insurance you may need

• Tips for buying

• FAQ

• Summary

How Much Does IT Consultant Insurance Cost?

IT consultant insurance costs range from $39 to $289 per month depending on your provider, coverage, area of specialty, customers, service, and risks. The following are some examples of common policies:

• Basic (essential coverage to meet client demands): $39 per month for general liability (GL)
• Standard (protect your business against service errors): $89 per month for general liability (GL) + errors & omissions (E&O)
• Pro (get protected against data breach): $289 per month for general liability (GL) + errors & omissions (E&O) + cyber security

These policies may not provide all the necessary coverage to protect your company from the risks of the services you provide. Most providers, however, will allow you to customize a package with additional insurance for your specialized needs.

What Is IT Consultant Insurance?

IT consultant insurance is essential coverage for businesses big and small; working with hundreds of clients, or even just one. During any job, you or your employees could make a mistake, and things outside of your control can occur. While some issues are small, understandable, and acceptable, sometimes the results can lead to significant damage and losses for a business. An angry client can sue you, and even if you are not found liable, you will still have to pay for the costs to defend yourself and a prolonged, public legal battle will not be good for your image. Without proper protection, a single lawsuit can wipe out your assets and ruin your business. IT consultant insurance provides pivotal security by covering you for damages from potential errors and pays for legal costs.

What Does IT Consultant Insurance Cover/Not Cover?

The risks IT consultants face are various. When working in a client’s office or home to install the physical components of a system, you may use equipment to open up a wall and add wiring and cause unintended property damage or even injury. Additionally, if the system you set up malfunctions, shuts down completely for a period of time, or simply does not work as promised, your customer can suffer significant losses. And IT consultant work involves driving company vehicles to various locations to provide maintenance, and accidents can occur. IT consultant insurance covers these potential liabilities and others that fall into the following categories:

• Third-party bodily injury

• Third-party property damage

• Personal injury

• Products/completed operations

• Professional negligence

• Retroactive claims (previously contracted work)

• Subcontractor errors

• Business-owned vehicle damage and comprehensive collision

• Third-party injury and property damage from company vehicle accidents

Certain risks may not be covered under typical policies and require additional insurance. They can include:

• Accidents from employees driving personal vehicles

• Medical expenses for employee injury and illness

• Damage or loss of company assets while in transit

You can often get protection from these potential claims by adding additional coverage to your policy.

Benefits And Risks

IT consultant insurance offers various benefits to cover risks, including:

• Peace of Mind: ​Knowing that your business is covered in case something happens outside of your control gives peace of mind to you, your employees, and your clients. 

• Client Compliance: Companies often require a certain level of insurance coverage in order to award a contract. 

• Cover Legal Expenses: If a client, employee, or third party files a lawsuit against you, IT consultant insurance will cover the expenses, including attorney fees and damages.

Types Of Insurance You May Need 

• Commercial Auto Insurance: Covers liability for damage and injury from accidents when employees are driving company vehicles.

• General Liability Insurance: Covers medical expenses, attorney fees, court fees, and damages from claims involving third-party bodily injury, property damage, personal injury, and advertising mistakes.

• Errors & Omissions Insurance (E&O): Protects your business against claims of mistakes and inadequate work.

• Employment Practices and Liability Insurance (EPLI): Provides coverage against claims of employment-related issues like discrimination, sexual harassment, wrongful termination, and failure to promote.

Tips For Buying

When considering IT consultant insurance cost, keep the following in mind before making your decision:

• Identify Your Risks: Be sure to thoroughly analyze your business, considering your clients and services, to identify potential risks. After that, choose the proper limits and include all the applicable coverages.

• Work with an Independent Agent: An independent insurance agent will help direct you toward providers with the best rates and those that have the most experience with the IT industry. 

• Compare Quotes: Policy premiums vary between insurers. Consider at least three quotes to find the best rates and coverage.

FAQ

- How do I cover liabilities for employees who use their personal vehicle to drive to locations?

Purchase hired and non-owned insurance coverage. This policy will cover your business for liabilities from third-party injury and property damage involving accidents when employees are using their own cars. It will not pay for their personal liability or damage to their car.

- Do I need workers’ compensation insurance?

Depending on your location, workers’ compensation insurance might be mandatory. Most states require coverage for any company that employs at least two people. Additionally, it makes your employees feel more comfortable and safe while on the job.

- How do I protect expensive equipment while employees drive it to a client’s property?

Purchase inland marine insurance. This policy covers your equipment and other assets in case they are damaged or stolen while being transported or delivered to customers.

Summary

IT consultant insurance protects your company from the various risks involved in designing, installing, and maintaining technical systems.

By understanding IT consultant insurance costs and determining your needs, you can know that your policy covers potential risks and feel secure that your business is safe.

All Types of Insurance You May Need