Article Summary:
Are you looking for information about IT freelance insurance? Nowadays, IT and technology professions are increasingly important. Consequently, the risks faced by companies have significantly risen in recent years. That’s why Weepo provides everything you need to know to take out a tech IT insurance. IT professional liability freelance insurance, web developer insurance... Secure your business from cyber risks.
Among the main risks to cover as an IT freelancer are:
📌Real-life example:
An IT freelancer develops and maintains internal software for an SME.
Pressed by deadlines, they neglect some security measures (weak passwords, absence of vulnerability testing, etc.). A few months later, the system is hacked, client data is stolen, and the company’s activity is severely disrupted for several days. The company sues the freelancer and demands compensation for financial losses. Without insurance, the freelancer has to pay these costs alone and endangers their cash flow.
To guard against the aforementioned risks, it is recommended to take out suitable insurance.
RC Pro insurance is not mandatory but highly recommended for IT freelancers, as it covers all the following risks:
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 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 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 covers loss of income during non-working periods:
It completes basic social security coverage during work stoppage, allowing you to receive daily allowances to maintain all or part of your income.
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:
📌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.
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 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.
| Profession Category | Example Jobs | Why take out insurance? |
|---|---|---|
| Developers | Full-stack developer, back-end, front-end, web and mobile developer | A programming error, security flaw, or malfunction can cause significant financial losses for the client. |
| Software and Video Game Editors | SaaS editor, software editor, video game studio | Bugs, service interruptions, or delivery delays can incur significant liability for the editor. |
| IT Infrastructure Professionals | Systems and network administrator, cloud architect, cloud engineer, DevOps, hosting provider | Poor configuration or outages can result in critical client system downtime. |
| Data and AI Management Professionals | Data engineer, data scientist, data manager, BI analyst | A processing mistake or poor data analysis can mislead a client's strategic decisions. |
| Cybersecurity Professionals | Cybersecurity consultant, IT security engineer | An undetected vulnerability or insufficient recommendations can expose the client to major cyberattacks. |
| IT Consultants and Trainers | IT trainer, digital transformation consultant, IS consultant | Bad advice or inadequate training can lead to long-lasting operational and financial consequences. |
| IT Technicians | Managed services, asset management, hardware and systems maintenance | Faulty interventions can cause outages, data loss, or business interruptions for the client. |
| IT Hardware Sales | Audio-video equipment, telephony, computing, sound system | Defective hardware or bad advice can expose the seller or installer to liability. |
| CAD and Digital Design Experts | Game designer, web designer, UX/UI designer | Non-compliant or unusable creations can lead to disputes related to quality, deadlines, or final use. |
You now know the different insurance solutions for IT freelancers, their benefits, and the professions they cover. Here’s a recap:
For further reading, check out our article on IT career advice.
Professional insurance for IT freelancers is not mandatory but highly recommended if you work with sensitive data or major information systems.
Professional liability insurance for IT freelancers covers your civil liability in the context of your IT services (material, immaterial, or bodily damages).
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.
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