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Independent IT consulting is a great way to work — right up until a client dispute or a data incident lands on your desk. If you take on client projects in Texas, two coverages protect the risks that come with the job.
Professional liability (E&O): your project risk
E&O covers you when a client blames your technical work for a financial loss, even when you did nothing wrong:
- A migration you handled causes downtime, and the client claims lost sales.
- You recommend an architecture that does not perform the way the client expected.
- A client says a gap in your work led to a costly problem.
General liability will not cover any of that, because none of it is physical injury or property damage. E&O is built for professional work — it handles legal defense and covered claims, and clients increasingly require it before they sign.
Cyber: your data risk
With access to client systems, credentials, or data, you carry cyber exposure on top of project risk. Cyber insurance covers breaches, hacking, ransomware, phishing, and even a lost device holding client files. A single incident can trigger notification costs, recovery costs, and liability at once. Pairing cyber with E&O closes your two biggest gaps.
General liability is a useful add-on for physical risks, but E&O and cyber come first for an IT consultant.
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. Available in Texas (49 states plus DC, not Alaska).
Frequently asked questions
Do IT consultants in Texas need professional liability insurance?
Yes. E&O covers claims that your technical work caused a client a financial loss, which general liability will not. Many client contracts require it.
Does general liability cover an IT consultant's mistakes?
No. General liability covers physical injury and property damage, not claims about your professional work. That gap is what E&O is for.
Do IT consultants need cyber insurance?
If you handle client systems or data, yes. Cyber covers breaches and ransomware and pairs with E&O to close your two biggest gaps.
Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.