Technology
Professional Indemnity Insurance for IT & Technology Professionals
Technology businesses carry professional liability whenever they advise on, build or manage systems that a client relies on. Professional Indemnity protects against claims that a system failure, coding error or advice error caused client loss.
Why it matters
Why it & technology professionals need Professional Indemnity
- Client contracts and Master Service Agreements increasingly require IT suppliers to hold adequate PI cover.
- Software defects and system failures can cause significant downstream client loss.
What does IT Consultant PI cover?
- ✓Claims arising from alleged negligent advice, software defects or system implementation errors.
- ✓Defence costs in responding to professional negligence and breach of duty claims.
Common exclusions
- –Cyber events such as data breaches or ransomware — these need Cyber Liability cover.
- –Deliberate or fraudulent acts.
Real scenarios
Common IT Consultant PI claims
Software defect claims
Claims alleging that defective code or configuration caused business interruption or loss.
Implementation failure claims
Claims linked to failed or delayed system implementations.
Consulting advice disputes
Claims that technical advice or architecture recommendations were negligent.
How much PI cover does an it consultant need?
Limits should reflect your largest client contract value and any client-mandated minimum limits.
What affects the premium?
- Annual turnover
- Mix of consulting, development, SaaS, hosting and managed services
- Cybersecurity service offerings
- US / Canada client exposure
- Largest client and contract value
- Claims history
What information insurers require
- • Annual turnover
- • Services provided (consulting, development, SaaS, hosting, managed services, cybersecurity)
- • Largest client and contract value
- • US / Canada exposure
- • Claims history
Retroactive cover
Retroactive date should reflect when your business began providing IT services or first held PI cover.
Run-off cover
Run-off cover matters if the business is sold, merged or wound down.
FAQ
Frequently asked questions
Yes — PI covers liability for advice, code and system errors, while Cyber Liability covers data breaches, ransomware and network security failures. Many technology businesses carry both.
Get your IT Consultant PI quote
One simple online application, tailored to how it & technology professionals actually work.
Related professions
Related covers
- Cyber Liability →
Covers data breach, ransomware and network security failure exposure.
- Public Liability →
For businesses with client site visits or physical premises exposure.