Professional liability insurance for IT consultants. Who can get insured?


IT Insurance - Why is it worth taking care of? In the era of digitalization, protection against risks is crucial. We explain the benefits provided by IT insurance and the threats it can protect businesses operating in the technology industry from.

You may wonder how much a mistake in the new technology industry can cost. Professional liability insurance for IT consultants protects against the financial consequences of performing professional duties. Find out in which cases it applies and what costs the insurer can cover.

From this article, you will learn:

  1. What positions fall under the term "IT consultant"?
  2. What is professional liability insurance, and how does it work in practice?
  3. What is the exact scope of coverage?
  4. When will you not receive compensation?
  5. Is it worth buying professional liability insurance?

IT Consultant - who is that?

Not sure what an IT consultant is? Check who can benefit from this type of insurance.

IT consultant liability insurance is aimed at:

  • programmers,
  • software testers,
  • developers,
  • UX/CX specialists,
  • project managers,
  • network administrators,
  • database specialists.

In short, it applies to all professionals in the field of new technologies.


Insurance can be utilised by professionals in the industry who work based on any civil law contract. It also applies to IT companies with revenues up to 5 million PLN, providing services to clients within the European Economic Area.

What is liability insurance (OC)?

Mistakes at work can be very costly for you, for example, when your employer or client suffers losses due to your actions or if you fail to fulfil your contractual obligations and expose yourself to contractual penalties. In such situations, an insurer provides you with financial protection (takes over the claim from the injured employer or client) and covers related additional expenses (such as legal costs).

Simply put, liability insurance is protection against the financial consequences when the insured party (which is you) causes harm to third parties. How does it work in practice?

Liability insurance can cover various areas, such as liability for the use of motor vehicles or liability in personal life for everyday activities. The same goes for professional liability insurance for IT specialists, which relates to your professional IT industry activities.

Made a mistake in software development? Breached confidentiality or intellectual property rights? Or maybe your actions have exposed a client to defamation and slander?You don't have to worry about paying compensation out of your pocket because professional liability insurance will cover these costs.

What is the scope of liability insurance coverage for the IT industry?

At Leadenhall Insurance, the scope of coverage depends on the sections you choose. You have the following options:

Section I - voluntary insurance, covers claims arising from damages incurred during the professional provision of services. It also includes:

  • Additional defence costs
  • Coverage for legal proceedings
  • Liability for infringement of intellectual property rights
  • Liability for breach of professional secrecy
  • Liability for defamation
  • Loss of documents

Section II, commonly known as cyber insurance, covers claims arising from violations ofpersonal data protection regulations (such as GDPR), including regulatoryproceedings conducted by supervisory authorities and damages resulting frommalicious software (cyber risks).

Please note that there are several requirements associated with having coverage, upon which the insurer's support after a claim depends. Firstly, you cannot withhold information about circumstances that were a direct or indirect cause of the incident. Of course, the policy does not cover situations that qualify as criminal acts, among other things.

Is it worth buying professional liability insurance for an IT consultant?

In the industry of new technologies, the risk of causing significant damage is considerable. The compensation costs can reach several hundred thousand and, in extreme cases, millions PLN.

The premium amount depends on several factors, including the insured sum indicated in the policy and the deductible. At Leadenhall Insurance, you can choose the upper limit of the compensation that the insurer will cover.

You make the decision based on the following limits:

  • Section I     - from 500,000 zł to 5 million PLN,
  • Section     II - from 200,000 zł to 500,000 PLN.

You can find more details about professional liability insurance for IT consultants HERE.



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