In most cases, IT subcontractors are not fully covered by their client’s insurance. Even when you are working under a larger contractor or as part of a broader project, a claim can still flow back to you personally. As a result, most IT subcontractors need to have their own insurance in place.

This applies whether you operate under an ABN, as a company or trust, and whether you work as a developer, consultant, managed service provider, or project-based technician. It is especially important if you subcontract to another IT provider, agency, or consultancy rather than contracting directly with the end client.

Client insurance is usually not enough because:

• Most IT Liability and Professional Indemnity policies only cover the insured business and its employees
• Subcontractors are often excluded or required to hold their own equivalent cover
• Even if a client’s policy responds, their insurer may recover costs from you if the issue arose from your work

If you work for multiple clients, relying on a single client’s policy creates gaps in coverage. A client’s insurance will usually only apply to work performed for them and will not protect you across other projects or overlapping engagements.

In some cases, larger contractors arrange insurance that extends to named subcontractors. This must be clearly stated in the policy and the contract and should never be assumed. Project-based or owner-controlled policies may also include subcontractors, but coverage limits and exclusions vary and must be confirmed in writing.

As an IT subcontractor, the main types of cover to consider include:

• IT Liability or Professional Indemnity insurance for financial loss caused by errors, bugs, system failures, or advice
• Public Liability insurance if you work on-site, install equipment, or interact with third parties
• Personal accident or income protection, as subcontractors do not receive employee benefits

Before starting work, it is important to:

• Ask your client whether their policy covers subcontractors and request this in writing
• Review your contract for insurance requirements, including limits and types of cover
• Arrange your own insurance if there is any uncertainty

Having your own policy ensures you are covered across all clients and projects, not just one engagement. Your insurance should reflect the services you provide and be reviewed as your work changes. We regularly help IT subcontractors confirm requirements and arrange cover that protects them properly. Get in contact to speak with one of our broker experts today.