Business insurance for IT contractors & consultants

An IT contractor offers up their expert skills, while a consultant provides guidance – insurance looks after businesses in these fields if something unexpected comes along. Insurance can protect an IT contractor or consultant against the financial impact of a claim or legal proceedings, whether from a dissatisfied client or data leak. At Hiscox, we can tailor a policy with covers to suit an IT contractor such as professional indemnity insurance and cover for cyber threats.

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Why choose Hiscox for IT contractor insurance?



PI cover up to £10 millionHiscox can offer IT contractor professionals and consultants professional indemnity insurance up to £10 million for legal expenses.


Flexible insuranceOur flexible approach means you can pay monthly, make unlimited changes with no fees and cancel at any time.


Award-winning experts

Hiscox is the proud winner of the Feefo Platinum Trusted Service Award in 2024 and has also achieved Chartered Insurer status.

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Why do IT contractors need insurance?

A system failure

When a customer’s system goes down as a result of untested patches in an operating system’s update, you’re the first point of contact to find a resolution, but you might also be blamed for the glitch. Even though you act quickly to get your client back online, they decide to make a claim for revenue lost in the downtime, arguing you should have used simulations in case of software failure. Sometimes a genuine mistake or miscommunication can result in legal action for an IT contractor – professional indemnity insurance can help with defence and settlement.

A client injury

You’ve secured a consultancy contract with a new green energy company to develop their data systems and head up training for employees. The learning session is booked, so you set up your presentation and invite attendees into the meeting room. Unfortunately, your laptop charger cable is trailing on the floor, causing someone to trip and hit their head. Public liability insurance can provide welcome backup for legal expenses and compensation if the injured party decides to make a claim against you.

A major data breach

While working on an exciting contract to optimise the network management of a clothing brand, the system is compromised by hackers. Before you can stop the breach, cybercriminals steal sensitive data from the software you’re using. For an IT contractor, insurance needs to cover the cost of retrieving data, performing repairs and defending against claims for compensation. Cyber and data cover with Hiscox can assist with recovery from attacks, restoring systems and recreating data.

What cover is available for insurance for IT contractors?

An IT contractor might add other insurance types, such as public liability insurance, to their policy. Employers’ liability cover can be essential (external link) when employing staff, while you could also include portable equipment cover, equipment breakdown insurance and legal protection.

I have been relying on Hiscox for some years, and as always they have delivered. Quick, easy, each step well explained, and I know I have good coverage. They are awesome!
Tech Marionette Limited
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Insurance for IT contractors and consultants: FAQs

What does professional indemnity insurance for IT consultants and contractors cover?

Professional indemnity (PI) insurance can cover several key scenarios for IT contractors and consultants.

Both roles can benefit from PI cover, as a client might say your consultancy was poor or that you made a mistake. You could even face a negligence claim if they say your mistake or advice cost them money.

A company might claim you breached confidence by disclosing private information during database admin work. Alternatively, someone may file a defamation case, citing a false statement about the contracted work which damaged their reputation.

You may also require cover if documents become lost or stolen. PI insurance provides cover for an IT contractor in all these circumstances.

How much does IT contractor insurance cost?

Business insurance with Hiscox starts from £10* a month, but the cost of your IT contractor policy will depend on the products you choose and the cover limits you set.

We work with you to tailor a policy relevant to your business. An IT contractor will have frequent access to databases and networks, so may feel more comfortable having a higher limit of cyber and data insurance, for example.

Our FAQ page can help you discover what you need to consider when working out how much business insurance costs.

*Figures based on policies from at least 10% of our customers.

Do you provide proof of cover?

Yes, at Hiscox we understand that contract and consultancy work often comes with the condition of requiring proof of cover. That’s why we swiftly send your policy documents to you after purchase to the email address you provide – you’ll also be covered immediately.

Before a client signs on the dotted line to employ the services of a trader in your line of work, they may stipulate they require you to have certain types of cover.

For instance, an IT contractor will likely be asked for proof of professional indemnity insurance.

Meet our experts

Adam Atkins

“One thing I’m truly passionate about is Hiscox’s ability to provide expert knowledge, whatever the situation. Our team of in-house tech specialist underwriters and lawyers have years of experience and can navigate customers through complex claims, providing expert solutions.”

- Adam Atkins, Head of Technology

Claims stories: PI cover

Read our real claim example of how Hiscox helped a software developer customer through a professional indemnity claim from a client.

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