Which damages are covered?
- financial damages to third parties (programming errors, missed deadlines)
- personal injury, property damage and consequential damage to assets
- Damage caused by Internet use
- inventory and electronic damages
- costs for legal disputes
How much does insurance for IT service providers cost?
Insurance for IT service providers is available
from 14.63 € / monthly
Covered in 9 minutes!*
Step 1 – Answer a few questions about your business
Step 2 – Get a product recommendation and personalized quote
Step 3 – Purchase your coverage immediately and manage 100 % online
*Depending on elected insurance product, desired start-date of policy and our insurance partners
Personalized protection for software companies and online platforms
Christian Gengler, MSc.
Insurance for IT freelancers and companies - our advantages:
- Customized protection tailored to the risks of IT services
- non-binding offer calculation in only nine minutes
- personal consultation with insurance experts possible
- instant price calculation thanks to insureQ algorithm
- Conveniently handle contract adjustments and damage reports online
- ARAG, R+V and Hiscox as insurance carriers and experienced partners
Why should I insure my IT service profession?
What insurance do I need as an IT service provider?
In the following section, we clarify in general which insurances are relevant for IT service providers. However, specific insurance coverage for your company or your self-employment must be individually tailored to specific risks and therefore calculated for you. This means that we can only give you a basic overview of the respective insurance products here. If you would like to know more, you can ask us for a non-binding quote at any time.
Public liability: Liability for IT service providers
The commercial form of liability insurance protects you if a third party suffers personal injury, property damage or financial loss as a result of your actions. Personal injuries in particular occur more quickly than you might think and can result in claims for damages in the millions.
Example 1: During a move, your employees dismantle all technical equipment. When a customer comes to talk to you, he falls over a carelessly placed monitor. He injures himself (= personal injury) and demands compensation from you.
Example 2: Your customer hands you his laptop during an appointment. You are not attentive for a moment and drop it (= property damage). The device can no longer be switched on. Your customer demands that you pay for the damage.
Example 3: You agree with your customer that you will pick him up at the train station in the morning before an important appointment. When you arrive at the appointment, you realize that you have forgotten something. The appointment cannot take place. Your customer misses out on a very big order.
A business liability insurance for IT service providers is also called an all-risk insurance. This means that all typical activities of a developer and his company are covered by the insurance - they do not have to be explicitly named in the contract. The situation is different if insurance coverage for a specific activity has been excluded.
Professional liability for IT services
Professional liability insurance - also known as pecuniary loss liability - covers you as an IT consultant or IT service provider if you cause financial damage to your customer, for example as a result of incorrect advice, and claims for damages are made against you. The difference to business liability insurance is that "real" financial losses, for example due to a consulting error, are covered here and not consequential financial losses resulting from property damage or personal injury.
Example 1: Because you make a programming error, your customer's website is unavailable for several days. As a result, the customer misses out on important business.
Example 2: You fall ill and cannot meet the contractually agreed deadline for the preparation of a report that is needed for an important customer presentation. Business processes are delayed by weeks. Your customer demands compensation.
Cyber insurance for IT services
Whether it's a data, network security breach or operator error - you know these risks well, and yet a good IT infrastructure cannot adequately protect you from every carelessness or attack. That's why it's worthwhile for IT service providers to invest in cyber insurance. In this way, you and your company are not only protected against dangers on the Internet, but are also supported by PR experts, data protection lawyers and IT experts in the event of damage to your reputation and other negative consequences of an attack.
Example 1: By mistake, you publish confidential information on a customer's website (= data breach).
Example 2: Your IT service provider is threatened with an attack on your infrastructure and that of your customers if you do not pay a demanded ransom (= cyber extortion).
Cyber business interruption insurance for IT service providers
After a hacker attack or operator error by your own employees, downtime can occur that can mean lost revenue for your self-employment or business. Cyber business interruption insurance covers the costs of interrupting regular business operations.
Example 1: A targeted attack on your IT infrastructure by one of your former employees causes your systems to fail. The installed malware ensures that you cannot carry out your work. This results in a loss of revenue for you.
Example 2: One of your employees makes a serious mistake that results in you being unable to work for several days. So you lose not only your usual revenue, but also a potential new customer.
Cyber business interruption insurance will cover this loss of revenue you incur due to a business interruption following a cyber incident. In addition, the cyber insurance supplement offers the support of IT crisis experts, PR consultants, lawyers and provides preventive cyber training for your employees.
Corporate legal protection for IT companies and independent IT services
If a legal dispute arises, corporate legal protection is essential in order to be able to afford support from a lawyer or a court case. In this way, an IT service provider can prevent a financial loss. That's because a corporate legal protection policy covers attorney's fees, court costs and expert witness fees.
Example 1: Your employees fail to delete collected data and do not comply with the request for information about customer data (= DSGVO violation). You have to defend yourself in court against claims for damages. Without insurance, this will be expensive for your company.
Example 2: The tax office audits your accounting. It becomes apparent that expenses have been reported incorrectly several times. Not only do you have to make additional payments, but you may even lose your business license. Your only chance: a good lawyer.
In addition to general company legal protection, there are specific legal protection products that are worth taking out in specific cases:
Extended criminal legal protection: protects you in the event that you are accused of intent - for example, in the case of incorrect application for grants or tax evasion.
Employment legal protection: Covers you if a legal dispute arises in connection with employment law issues - for example, if you terminate an employee, pay additional benefits, or receive a warning.
Real estate legal protection: Covers legal disputes related to real estate - for example, an eviction action by the landlord or a disproportionately high utility bill.
Traffic protection: Insures the risk of litigation arising from company vehicles - for example, damage due to a faulty repair or significant defects in a vehicle purchased from a car dealership.
Depending on your business, it may be worth investing in specific legal protection. However, you can easily calculate whether this makes sense using our insureQ algorithm.
Content insurance for the IT industry
If your inventory is damaged, contents insurance pays for the resulting damage to furniture and other movable items of a business. It covers damage caused by storm, hail, fire, power water and burglary and pays for repairs or replacement of damaged inventory. Electronics insurance is often included or can be added.
Example 1: A cable fire in your office building causes significant damage to your inventory and destroys your electronic equipment. You wonder how to proceed now, because your employees are not able to work.
Example 2: You recently bought expensive furniture for your office. One night, criminals break into the building, steal laptops and destroy the furniture. The sum of the damage is several thousand euros.