Professional Indemnity for IT professionals

In today’s ever changing technology market, we can arrange Professional Indemnity for IT professionals.

Overview

Key features

Can protect your business:

  • If you’re sued by a client for breach of contract
  • If you unintentionally infringe a third parties intellectual property
  • Mitigation costs to help rectify a problem prior to a formal claim being made
  • Loss of documents and data
  • Regulatory body awards made against you
  • Cyber liability
  • Computer virus

Key benefits:

  • Flexible indemnity limits and excess options
  • No conditions precedent to insurers liability

Eligibility:

We can arrange cover for:

  • sole practitioners / IT contractors
  • IT Training companies
  • hardware resellers
  • software resellers
  • security software programmers
  • general software programmers
  • packaged software companies
  • network installation / maintenance companies
  • digital agencies
  • web site designers

Please note that this list of professions is not exhaustive

Policy

Product summary

  • Civil Liability
  • Breach of contract
  • Breach of privacy
  • Mitigation costs
  • Employees responsible to the Insured
  • Libel, slander & defamation
  • Dishonesty
  • Infringement of copyright – defence
  • Trustee liability
  • Loss of documents & data
  • Criminal prosecutions
  • Ombudsman / regulatory body awards
  • Investigation costs
  • Compensation for court attendance
  • Limited cover for asbestos
  • Non-gradual pollution
  • Joint venture / consortium
  • Secondments
  • Claims advocacy
  • Cyber liability

Cover options

Limit of indemnity options ranging from £250,000 to £5,000,000

Policy excess options ranging upwards from £250 each and every claim.


Documentation

Important

Claims - How to make a claim

Aon Claims Solutions
PO Box730
Redhill
RH1 9FH

Tel: 01737 783600

Fax: 01737 783600

FAQs

Frequently Asked Questions

What is Professional Indemnity insurance?

Professional Indemnity insurance protects your business from financially crippling and often reputation-damaging claims by dissatisfied clients.

Professional Indemnity insurance covers the cost of defending a claim as well as settling any damages payable. In some cases, clients may even insist that you are covered by a Professional Indemnity policy before hiring you.

Below are just some of the areas you, as an independent IT professional, could be exposed to:

    • Negligence: or breach of duty of care
    • Intellectual property: unintentionally infringing on others' copyrights, trademarks, broadcasting rights, any act of passing off
    • Loss of documents/data: damaged, lost or stolen data and documents belonging to your clients
    • Dishonesty: liability arising from the theft of your clients' money

What does “retroactive date” mean?

This means that the policy excludes claims arising from work undertaken prior to this date. If you have an existing policy in force, it is important that the retroactive date is carried over from the old policy on to any new insurance.

What does “any one claim” mean?

Your policy covers claims up to the limit of indemnity in respect of any number of claims arising from separate acts of negligence notified to insurers during the period of insurance. For example if, a £1 million limit of indemnity is purchased and separate claims are notified to insurer(s) during the insurance period, the full £1 million limit is available for each claim.
Your policy will pay out court awards to a claimant as well as the legal costs incurred in investigating / defending a claim. If multiple claims arise from one single act of only a single limit of indemnity will apply.

What does “claims made and reported” mean?

The policy must be in force when the claim is made against the contractor. This is irrespective of when the work concerned was carried out. It is essential that the insurance is maintained to provide protection for claims which may arise in the future from work done in the past. If a policy is cancelled, it is as if the cover was never purchased. Clients and/or funders may make it a contractual provision that PI insurance be maintained for a number of years after the completion of the services i.e. 3, 6 or even 12 years.

What Professional Indemnity limit should I consider?

The minimum limit of cover many require is £1 million on any one claim. Customers need to consider their level of cover carefully. There is no exact science in calculating what level of cover should be carried although the following should be considered:

  • the size and nature of the contracts being undertaken and the extent of your liability under those contracts
  • previous claims statistics against your profession
  • contractual requirements

What does “Policy excess” mean?

This figure represents the uninsured portion of a successful claim that you will have to pay.

Does being a limited company or sole trader make any difference?

From an insurance point of view, this will not materially affect the quotation provided. Should you change the status of your business during the insurance year,  please contact us immediately so that we may notify underwriters.

What does my policy cover?

For full terms and conditions please contact us.

What should I do if a claim is made against me?

The notification guide contained within your policy schedule sets out guidelines in relation to reporting claims. This should be read in conjunction with your policy document.

If I notify a claim, will my premium increase?

It will depend on the size and nature of the claim and its ultimate outcome. Insurers may set a reserve during the handling of the claim, which is the amount in the insurers opinion of costs they are likely to incur. In most cases, the reserve will include the estimated damages and legal costs in defending the claim. If the claim or reserve amount is large the premium is likely to increase.

Will my policy cover sub contractors?

Yes, the policy will cover your IT contractors or consultants. This is only provided, if you have taken reasonable steps to ensure that our rights of recovery against your sub-consultant are not restricted or financially limited by a specific term in a contract or other agreement. Also, the insured will need to declare the sub-consultant fees in the proposal form.

What are the cancellation terms on the policy?

If you need to cancel your policy prior to the expiry date then you may not be entitled to receive some of your premium back.


All policy administration fees will be deemed fully earned upon inception of the policy.Any return premium that the insurer agrees to make will be pro-rata'd subject to a minimum time on risk charge and no refund of administration fee.


In the event that you have made a claim under the policy the premium shall be deemed fully earned. In the event of cancellation you shall be entitled to any amount of the premium paid over and above the earned premium.

This insurance will be arranged by Aon UK Limited (Aon) on behalf of the Insured.

Maven Underwriters is the Managing General Agent which is part of Aon UK Limited operating under a delegated underwriting authority on behalf of Novae, Argo & Marketform. Maven Underwriters is a trading name of Aon UK Limited.

Aon UK Limited is authorised and regulated by the Financial Conduct Authority. Aon UK Limited, The Aon Centre,The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AN. Telephone calls are charged at a local rate and may be recorded and monitored.

FP.PSG.1497.MH