An IT subcontractor should not assume they are insured under their client’s insurance policy.

Whether another party’s policy provides any protection depends on the policy wording, contract and the circumstances of the engagement.

What can the contract require? #

An IT subcontracting contract may require you to:

• Maintain your own Professional Indemnity or IT Liability Insurance
• Maintain Public Liability Insurance
• Provide a Certificate of Currency
• Maintain insurance for a period after the work is completed
• Meet specified insurance limits
• Accept particular indemnity obligations

The position can be different for an employee compared with an independent contractor.

Check what the client’s insurance actually covers #

A client’s Professional Indemnity or IT Liability policy may cover the client’s liability arising from subcontracted work without making the subcontractor an insured under the policy.

In other arrangements, subcontractors may be specifically included or covered for particular activities.

This needs to be confirmed rather than assumed.

Questions to consider include:

• Are you actually named or defined as an insured?
• Does the policy cover your professional services?
• What limit and excess applies?
• Are there subcontractor exclusions or conditions?
• Does the contract require you to maintain your own insurance?

You can read more about engaging subcontractors.

What insurance might an IT subcontractor consider? #

Depending on the services performed, relevant covers can include:

• IT Liability
• Professional Indemnity Insurance
• Public Liability Insurance
• Cyber Insurance
• Business equipment cover
• Personal Accident and Illness

Contractual insurance requirements should also be reviewed before commencing an engagement.

Webber Insurance can provide a high-level insurance review of contract requirements and can refer clients for a legal contract review, including the insurance and indemnity provisions. We do not provide legal advice.

Contact our team if you would like help reviewing the insurance requirements applying to your IT subcontracting work.