QUICK ANSWER
What information should an IT consultant prepare for insurance?
An IT consultant should describe technology services, turnover, largest projects, client sectors, software and systems work, hosting or managed services, cyber-security responsibilities, subcontractors, data access, contracts, territories and previous claims or service failures. Continuing operational or security responsibilities should be identified separately from one-off consultancy work.
AT A GLANCE
How the protection works
A clear IT consultant insurance proposal should describe the technology services provided, annual turnover, largest contracts, client sectors, project values, software or systems designed or implemented, hosting or managed services, cyber-security responsibilities, subcontractors, contractual liabilities, data access, territories and previous claims or service failures.
IT Consultant Insurance is not one universal contract. The relevant professional, cyber, liability and other sections depend on the services performed, contractual responsibilities and the individual risk.
TECHNOLOGY & PROFESSIONAL RISK
What may be covered
- Professional indemnity for insured allegations arising from technology advice, design, implementation, configuration or other professional services.
- Cyber and technology liability sections where the consultant has responsibility for systems, data, hosting, security or managed services.
- Public liability, employers’ liability, equipment or other business sections where separately required by the consultant’s operations.
Cover depends on the services declared, contractual responsibilities, limits, exclusions and full policy wording.
BOUNDARIES
Common exclusions and limitations
- Known claims or circumstances and services, territories or technologies outside the accepted business description.
- Contractual guarantees, service credits, performance obligations or liabilities assumed beyond the policy wording.
- Cyber, intellectual-property, data, security or technology-failure exposures where the relevant section or extension has not been arranged.
This is not a complete list. The actual wording, endorsements, excesses and schedule determine the protection.
CLAIMS IN PRACTICE
How a claim might arise
01. A client alleges that a system design, implementation or configuration error caused financial loss or operational disruption.
02. A managed-service or hosting failure leads to allegations that the consultant failed to meet agreed service or security responsibilities.
03. A cyber-security or data-handling failure connected with the consultant’s services leads to a claim or investigation.
These examples are illustrative only and do not confirm that a particular claim would be covered.
CHOOSING COVER
Questions worth resolving
- Are all technology services, project types, client sectors and contractual responsibilities clearly declared?
- Are turnover, largest contracts, software or systems work, hosting or managed services, subcontractors and data access accurately described?
- Can the consultant evidence change control, testing, backups, cyber-security controls, contracts and previous claims or service failures?
For wider proposal preparation, see the DIBNI Commercial Insurance Proposal Guide.
CONNECTED RISKS
Related protection to consider
- Property and business interruption where physical damage could stop operations.
- Public, employers’ or product liability for injury and property-damage exposures.
- Cyber, professional indemnity or management liability where data, advice or governance creates additional risk.
- Motor, marine, travel or other specialist protection where the activity requires it.
QUESTIONS
Frequently asked questions
What information should an IT consultant prepare for an insurance proposal?
Useful information commonly includes technology services, turnover, largest contracts, client sectors, project values, software or systems work, hosting or managed services, cyber-security responsibilities, subcontractors, data access, territories and previous claims.
Why do contracts matter for IT consultants?
Contracts can define service levels, warranties, indemnities, liability caps, data responsibilities and acceptance criteria, all of which help explain the consultant’s professional exposure.
Why should hosting, managed services and cyber-security work be identified separately?
Those services can create continuing operational and security responsibilities beyond a one-off consultancy project and should be described clearly to the receiving insurance professional.