There is no single Professional Indemnity limit suitable for every IT Consultant.

The appropriate limit depends on the services, clients, contracts and potential severity of a claim.

What should be considered? #

Factors can include:

• Contractual minimum limits
• Largest projects
• Contract values
• Size and type of clients
• Business-critical systems
• Potential downtime
• Potential data loss
• Project delays
• Sensitive information accessed
• Client industries
• Services provided overseas
• Potential third-party losses

The structure of the policy also matters.

Depending on the wording:

• Defence costs may be inside or outside the limit
• The limit may apply per claim or in the aggregate
• Reinstatements may be available
• Particular exposures may have sub-limits

A client’s minimum contractual requirement should not automatically be treated as the appropriate overall limit for the business.

Contracts can also contain indemnities, warranties and liability obligations that extend beyond the insurance policy.

Contact our team before signing a materially larger contract or accepting a higher insurance requirement.