IT Freelance Insurance | Risks and Covered Professions

Professional Liability Insurance (RC Pro)

RC Pro insurance is not mandatory but highly recommended for IT freelancers, as it covers all the following risks:

• Material damages such as breaking IT equipment;
• Immaterial damages such as data loss, coding errors, or confidentiality breaches;
• Bodily injury.

Thus, in case of an incident, it is your insurer that compensates your client, not you personally.

If you are under wage portage, see our guide on professional liability insurance in wage portage.

Legal Protection Insurance

Legal protection insurance allows you to protect yourself against legal disputes that may arise with a client or a service provider in case of breached contract terms, potentially forcing you to compensate them yourself.

📌Concrete example of a dispute covered by legal protection:
Suppose you’re an IT freelancer and carry out a development project according to the signed contract. At the end of the project, the client claims unsatisfactory work not previously documented and refuses to pay your invoice. To defend your rights, you can activate your legal protection insurance for contract analysis, amicable settlement, and even coverage of lawyer fees if necessary.

Professional Multi-risk Insurance

Professional multi-risk insurance covers your business premises as well as loss of activity caused by an incident such as a burglary, fire, water damage, and more.

💡Good to know: You can request an extension of your home insurance policy if you work from home.

Health & Income Protection Insurance

Health & Income Protection Insurance covers loss of income during non-working periods:

• Temporary disability;
• Permanent disability;
• Long-term illness;
• Death, etc.

It completes basic social security coverage during work stoppage, allowing you to receive daily allowances to maintain all or part of your income.

Cyber Risk IT & Technology Insurance

This insurance protects you against various cyber risks such as hacking attempts, data theft, or phishing that your clients may experience. A cyber risk insurance policy usually covers the following two areas:

1. Compromises to information systems: cyber intrusions, cyberattacks, etc.
2. Compromises to personal data: dissemination of client data, even accidentally.

📌Concrete example of the benefits of cyber risk insurance:
You host data on a client’s cloud server. After a phishing attack, credentials are compromised, a ransomware is deployed, and the data is inaccessible. With cyber risk insurance, you can cover the costs of data restoration, crisis management, and business interruption losses.

Corporate Officer Liability Insurance

This insurance protects you from financial defaults, lack of IT professional liability insurance, or claims against company officers. It helps avoid paying large compensations and thus keeps your assets safe.

Health Insurance

Health insurance is optional for freelancers, but it enables you to cover the remaining portion of your medical expenses. A health insurance contract offers additional support on top of statutory coverage, as standard refunds from the state health insurance only cover a part of the official reimbursement base. Health insurance is therefore an excellent way to protect your finances from medical bills.

Additionally, check out our article on health insurance in wage portage.

Is professional insurance for IT freelancers mandatory?

Professional insurance for IT freelancers is not mandatory but highly recommended if you work with sensitive data or major information systems.

What is the benefit of IT professional liability insurance?

Professional liability insurance for IT freelancers covers your civil liability in the context of your IT services (material, immaterial, or bodily damages).

How much does IT professional liability insurance cost?

The cost of professional liability insurance for IT freelancers depends on the level of protection required, your turnover, and the number of employees if you hire staff.