We know, insurance can be tricky to understand. Unfortunately, it’s not as clear as 1s and 0s when working out what cover you need to ensure you’re meeting your professional and contractual requirements. That's why our partner Guild Insurance has provided some insight into the importance of having the right insurance policy by developing common scenarios based on claims trends for the IT consultant profession below:

Scenario one – Expectations can be hard to meet

Despite best efforts, sometimes things don’t end the way intended. Whether that’s due to expectation management, perceived skill or capability, or it's just a bad day, there's a range of reasons that an employer can feel they've been left exposed, feeling vulnerable or worse, have experienced a financial loss. In this case, they may seek retribution by way of seeking compensatory damages.

Scenario two – Differences in scope of work after commencement of contract

It is not uncommon for claims to arise due to cost variation involving a contract. The variation could occur for a range of reasons, including but not limited to the contract taking longer than initially planned, or the discovery that the project is far larger and more complicated than first anticipated. If this results in a dispute of work/cost, things can and often do get messy if not communicated well.

Scenario three – Mistakes in high risk industries

Developing software for aerospace applications can come with challenges. Even the smallest mistake in this sector could have enormous consequences. Like the aerospace industry, segments such as health, utilities, medical or defence, among others, can come with significant risk if an accident occurs, and can result in major claims.

Scenario four – Proof of insurance and maintaining cover

Employers may ask for evidence of professional indemnity and public liability insurance as a condition for working for them. However, it is imperative to maintain your professional indemnity insurance policy after the contract ends, as claims may arise days, weeks, months even years after the services were performed. If you don't have a current policy, then you may be left exposed for claims or allegations made against you.

The ITPA partners with Guild Insurance to ensure the unique needs of your profession are covered. And they do this by providing a policy that bundles professional indemnity, products and public liability all in one.

To learn more about the features and benefits of Guild Insurance’s IT consultant policy, visit guildinsurance.com.au or call 1800 810 213.

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