IT Contractor & Consultant Insurance

Expect more from your insurer. Specialist IT contractor insurance from £5 per month*.

  • Fast, easy online quote in 90 seconds

  • 24hr legal advice helpline and legal hub

  • No hidden fees or cancellation charges

Whether you’re an IT contractor or a freelance consultant, if something goes wrong on a project and the client believes you’re at fault, you could be left facing eye-watering legal bills.

Without the appropriate level of insurance in place, your business could face financial strain.

At Markel Direct, we understand the risks you face and offer tailored cover that could protect you should the worst happen. Our specialist insurance for IT contractors combines industry-specific cover with professional and business support services to offer you more than just an insurance policy.

In this guide, we’ll take you through what IT contractor and consultant insurance is, who should consider obtaining the appropriate level of cover, what it covers and how to get an IT contractor insurance quote.

What is IT contractor insurance?

IT contractor insurance is a type of business insurance designed to protect IT professionals against the unforeseen. It is not a single insurance product but a range of covers you can choose from to build a policy which protects your business against all kinds of risk.

The types of cover available includes professional indemnity for allegations of professional negligence, public liability for personal injury claims, and cyber and data risks insurance to mitigate the effects of a cyber-attack.

For those who work in the tech field but whose specialism is not IT, we also offer more general contractor insurance and consultant insurance, as well as self-employed insurance and freelancer insurance policies.

Do IT contractors need insurance?

Using expert knowledge of systems and projects to provide specialist services to your client doesn’t come without risks. They have high expectations and when these expectations aren’t met - for example, a project not being delivered to the agreed specification and deadline - they may blame your work and take legal action against you.

If you, as a contracted worker, are deemed at fault, the financial and legal ramifications can be far-reaching - affecting you professionally and personally. IT contractor insurance from Markel is designed to protect you against such scenarios so that if something doesn’t go to plan, you’ll be covered.

What IT contractors’ and IT consultants’ insurance covers

Our insurance for IT contractors has been designed to cover against a range of claims that could be made against you, including:

Professional negligence
A new IT system you have implemented for a client does not work as expected, causing wide-scale financial and operational disruption. They hold you responsible for the error and take legal action to recover their losses. 

Breaches of contract
A client engages you as a project manager responsible for delivering a system to a specific deadline. The project overruns and they hold you responsible for the additional costs incurred due to the delay. 

Intellectual property disputes
One of your competitors alleges that you have copied content from their website and used it on your client's website. They take legal action against you seeking damages. 

Public liability insurance for IT contractors

Whether it’s the occasional client meeting or five days a week in a busy office, public liability will protect you if someone claims they were injured, or their property was damaged due to your work.

Professional indemnity insurance for IT consultants

If a client was to claim that your service had fallen below expectations, you’d made an error in your work, or you’d given them incorrect guidance, professional indemnity insurance would be the cover to protect you.

How much does IT contractor insurance cost?

At Markel Direct, we offer Insurance for IT contractors from £5 a month for £1 million worth of public liability cover*. When it comes to insurance, the cost varies from business to business depending on;

  • The size of your business  - your turnover and whether you have any employees
  • The level of cover you choose
  • The types of projects you work on and the equipment you use.

To get a clearer idea of how much you’ll pay, simply get an IT contractor insurance quote online.

Prefer to speak to someone? Call us on 0800 640 6600 to speak to an insurance expert for help arranging your IT contractor and IT consultant insurance.

*Price based on an IT consultant requiring £1 million of public liability insurance.

Why choose Markel Direct for IT contractor insurance?

There are many reasons why you should take out an IT contractor insurance policy with us. Here are a few:

✔ Affordable policies
Premiums start at £5 a month*, providing you with affordable insurance cover.

✔ Cover you can trust
As part of Markel International, a Lloyd’s and London market insurer, we accumulated gross premium totals of £2.4 billion in 2023.

✔ Quick quotes
Use our online quote form to get a quote in less than 90 seconds. It’s that easy.

✔ Legal advice whenever you need it
Day or night, you can access specialist information and guidance from our legal advice helpline. It’s available 24/7 and is run by experienced solicitors.

✔ Positive customer reviews
We’re highly rated by our customers at Feefo.com and are trusted by over 200,000 customers.

Customer reviews

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Cover starting at £5 a month

What insurance do IT contractors need?

  • Professional indemnity insurance

    Professional indemnity (PI) insurance for IT consultants and contractors covers the cost of defending your IT business against allegations of professional negligence (such as giving your client incorrect or wrongful advice, or providing sub-standard services) and if unsuccessful, the cost of damages awarded against you.

    Examples of claims include:

    Breach of contract: a client engages you as a project manager responsible for delivering a system to a specific deadline. The project overruns and you are held responsible for the additional costs the company incurs due to the delay.
    Negligence: a system you were contracted to design is deemed not fit for purpose after the project finishes.
    Intellectual property: one of your competitors alleges that you have copied content from their website and used it on your client's website. They take legal action against you seeking damages.

    In addition, our policy provides mitigation of loss cover, which pays the costs incurred to avoid a claim being made against you.

    This is essential insurance for IT contractors, consultants and businesses with limits ranging from £50,000 to £5m.

  • Public liability insurance

    Public liability insurance and product liability insurance covers the cost of defending your business (including damages awarded against you if unsuccessful) if someone is injured, or their property damaged, which arises from you going about your business or supplying products.
    Examples of claims include:

    • Property damage: you damage a client’s projector using the wrong adapter to plug in your laptop. They send you a bill for a new projector as the original is irreparable.
    • Personal injury: a client trips over a cable and injures themselves while visiting your workplace. They make a personal injury claim against you seeking compensation.

    Limits range from £1m to £5m.

  • Employer's liability insurance

    Employer’s liability insurance is a legal requirement if your business has employees. It covers your business against claims for injury or illness suffered by employees arising from their employment.

    An example of a claim would be:

    • An employee alleges they are suffering from a chronic bad back as a result of sitting in an unsupportive chair for too long. They make a personal injury claim against you seeking compensation.

    If your business employs other IT consultants, you need this cover. Cover for £10m.

  • Legal expenses insurance

    Legal expenses insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided for the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.

  • Directors and officers insurance

    Directors and officers insurance can cover you, as a director or an officer of your company, against claims of negligence or wrongful working practices – and any damages awarded against you as a consequence.

    Legal cost cover extends to additional claims such as disqualification as a director or extradition proceedings, as well as general investigations.

    Limits range from £100,000 to £5 million.

  • Office insurance

    Protect your business against theft or accidental damage with office insurance. Cover secures yo against damage of:

    • Office contets
    • Office buildings
    • IT equipment and computer hardware

    If you travel frequently for client work, this insurance also offers optional worldwide cover for business equipment, such as mobile phones and laptops.

    Our cover also give you the option to insure against any resulting loss of income or addtional trading expnses that aris as a result of damage or theft.

  • Cyber and data risks insurance

    Cyber and data risks insurance can help cover the financial costs in the aftermath of a cyber-attack. Costs can include:

    -       Meeting ransom demands

    -       Informing clients

    -       Restoration of IT equipment

    -       Recovery of client data

    -       Net profit losses for client

    Cover helps to pay your legal costs and penalties you must pay out to affected parties.

    If you store sensitive data on your devices, IT equipment and software, you should consider purchasing this cover.

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Frequently asked questions

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Cover starting at £5 a month

Frequently asked questions

  • I need to arrange IT contractors insurance to secure a contract – do you provide proof of cover?

    Yes. Once you take out a policy with Markel, you will receive your policy documents via email. This includes your ‘Confirmation of Liability Insurance’, which can be presented to clients as proof of your insurance cover.

  • Is my past work covered?

    If you have held professional indemnity insurance uninterrupted prior to arranging your policy with us, we will be happy to cover past work.
    However, if for any reason you have not had professional indemnity insurance in place for a period of time, unfortunately, your past work will not be covered. Examples of where past work would not be covered include:

    • You have never held professional indemnity insurance before
    • You chose not to renew a past insurance policy
    • You decided to cancel a policy at the end of a contract

    Don't hesitate to call us on 0800 640 6600 if you require further clarification.

  • What limit of cover should I choose?

    Many clients have their own requirements regarding the minimum level of cover required to begin contracted work. Before you arrange cover, it’s worth checking their requirements on specific cover limits.

    If you’re still unsure about what limits are needed, or if this is the first time you have taken out insurance, consider what the cost of putting right a worst-case scenario would be.

    With each type of cover available from Markel Direct, there is a range of cover limits, so you can choose the level which is relevant to your contracting work.

  • What's the difference between professional indemnity and public liability?

    Professional indemnity insurance is designed to cover you against certain claims of professional negligence – such as giving incorrect advice or a sub-standard service – that causes your client to lose money.

    On the other hand, public liability insurance protects you against instances of third party illness and injury claims – or property damage - where you are liable. For example, if a client were to have their laptop damaged.

    Professional indemnity and public liability insure against different liabilities, so consider taking out both types of cover where applicable.

  • How much professional indemnity insurance do I need as an IT contractor?

    Unless your clients have set a minimum level of cover required, it is up to you how much professional indemnity cover you need. Factors to consider are the size and type of contracts you work on, and how much it would cost if a potential claim was made against you for professional negligence. Remember, it’s always better to have too much cover than too little.

  • How are Markel Direct regulated?

    Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.

Expect more from your IT insurer.

When you take out cover with Markel, you receive these exclusive services as standard:

24 hour legal helpline  24/7 access to a legal advice helpline manned by qualified solicitors

 Access our fee dispute service to assist with unpaid invoices

 A specialist cyber response helpline to help in the event of a cyber attack

Legal hub access  Access legal templates and resources with the Markel Business Hub

  Receive discounted IR35 contract reviews with your policy

  Expert management of public relations crises with The Counsel House

Discover more about these services

Cover starting at £5 a month

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