Specialism · IT and consultants
Professional indemnity for IT contractors with foreign clients.
The contract from London or San Francisco asks for professional indemnity with a €1–2 million limit, USA territory and an English certificate — within days. That is exactly what we arrange.
Professional indemnity (E&O) covers a client’s financial loss caused by an error or omission in your work — a bug, a missed deadline, wrong advice — together with defence costs. Foreign clients and platforms require it as a condition of the contract. Through our partner — an EU insurance intermediary — the policy has worldwide territory including the USA and Canada, an English certificate and monthly payment.
What it covers
- Errors and omissions in software, consulting, design, DevOps, data
- Lawyers’ and experts’ fees, including before US courts
- Public liability, where the contract requires it
- Directors’ liability (D&O) and employee dishonesty — optional
- A retroactive date for projects already under way
Who it is for
- Freelancers and single-member companies with clients in the UK, USA, Germany, the Netherlands
- Small software studios and outsourcing teams up to 20 people
- Software development, web design and development, hosting and cloud services, telecoms, software sales — occupations in the partner’s rating
- DevOps, cloud, data and AI consultants
- Contractors through platforms and MSPs — Magnit, eTeam and similar
- Designers, product and QA consultants
What we need for a quote
- Activity and technologies
- Turnover for the last 12 months (or expected)
- Split of clients: EU, UK, USA/Canada, other
- The insurance clause from the contract — limit, territory, term
- Start of the contract and past projects you want covered
- Losses or claims in the last 3 years
The requirements
What the contract says — and what it means.
| Clause in the contract | What it means | What we check |
|---|---|---|
| Professional indemnity / E&O, limit €1,000,000 or €2,000,000 | A professional indemnity policy with a limit per claim at least as high as the client requires | That the limit is “any one claim”, not an annual aggregate, where the contract says so |
| Public liability | Injury or property damage to third parties while working on site | Often required together with PI, especially by UK agencies; the standard policy has EU territory |
| Worldwide, including USA/Canada | Professional indemnity covers claims from clients in the USA and Canada and proceedings before US courts | Standard Bulgarian policies stop at the EU or exclude the USA and Canada; here it is included with a USA and Canada extension — with a €5,000 excess per claim and defence costs within the limit |
| Certificate of insurance | A certificate in English that the client or platform verifies | Issued with the policy; MSP onboarding (Magnit, eTeam and others) validates it automatically |
| Retroactive date / claims made | Work after a given date is covered if the claim is made during the policy period | By default the retroactive date is the start of the policy; earlier projects are requested in advance |
| Cyber / data | Separate cover for incidents involving data and systems — hacking and viruses are excluded from professional indemnity | Required less often; if it is in the contract, a separate cyber policy |
Why a Bulgarian policy often falls short
Not because it is bad, but because it was made for another market.
- Territory and jurisdiction. Standard policies cover claims in Bulgaria or the EU; a claim from London or New York falls outside them.
- Language and document. The client wants an English certificate with clear limits — not a translation of a general policy.
- Speed. The contract waits days, not weeks; the policy has to be issued right after approval.
- Payment. A full annual premium for a four-month project makes no sense; monthly instalments solve it.
- Occupations. Many insurers have no rate for a “DevOps consultant” or “data engineer” and decline or overprice.
How it works
Three steps, usually within days.
- You send the clauseA photo or copy of the insurance requirement in the contract, your activity and turnover.
- A quote from our partnerAn EU insurance intermediary on the Bulgarian FSC’s freedom-of-services list; the carrier is an insurer rated A- “Excellent” by AM Best. Cover for 250+ occupations in tech and consulting, worldwide territory including the USA and Canada. You get the insurer’s name and the terms with the quote.
- Policy and certificate in EnglishRight after payment — monthly without interest or annually. With monthly payment you cancel at any time; cover ends at the end of the current month.
The policy wording is in English, with a Bulgarian translation for convenience; the English text prevails. The contract is governed by Bulgarian law with the courts of Sofia competent. Claims are handled by Sedgwick and its EU partners. Ins Center is an insurance broker registered with the Bulgarian FSC and represents you at placement and at claim.
Price guide (a quote from October 2026 for a software company with 10 employees, €5,000,000 turnover, 10% of clients in the USA): professional indemnity with a €2,000,000 limit and a €2,500 excess (€5,000 for the USA/Canada) plus directors’ liability of €500,000 — about €2,050 a year, the final amount with tax and fees; monthly instalments are possible. A higher excess lowers the premium noticeably: a €2,000,000 limit with a €2,500 excess costs about the same as €1,000,000 with a €250 excess. The example is not an offer; your price depends on the activity, turnover, limit and the countries of your clients.
Questions and answers
Is professional indemnity compulsory for IT companies in Bulgaria?
Not by law. It is compulsory by contract — the client, the agency or the platform require it before they pay the first invoice.
What limit do they usually ask for?
Most often €1,000,000 or €2,000,000 per claim; from the UK £1,000,000, from the USA $1,000,000 or $2,000,000. The limit is in the contract; we check it against it.
Does a Bulgarian policy cover a claim from a client in the USA?
Usually not — standard Bulgarian policies have Bulgaria or the EU as territory and exclude the USA and Canada. That is why we work with a partner whose policy expressly includes the USA, Canada and US courts. For such claims the excess is €5,000 and defence costs count towards the limit — so with US clients check that the limit in the contract is sufficient.
What are “claims made” and a retroactive date?
The policy responds to claims made during its period, for work done after the retroactive date. If you want earlier projects covered, the retroactive date must precede them.
Can I pay monthly and stop when the project ends?
Yes. With monthly payment you cancel at any time and cover ends at the end of the current month, with no refund. With annual payment — 30 days’ notice and a pro-rata refund of the premium if there has been no claim.
Does the policy cover a cyber attack or a data breach?
No. Professional indemnity excludes losses from hacking, viruses and cybercrime. If the contract requires cyber cover, that is a separate policy — see the cyber check.
What language is the policy in?
The certificate and documents are in English — that is what clients want. There is a Bulgarian translation, but the English text prevails; we explain the terms before you sign. The contract is governed by Bulgarian law with the courts of Sofia competent.
How much does it cost?
It depends on the activity, turnover, limit and the countries of your clients. The page shows only a sample quote as a guide — every price is individual. The quote is free and usually arrives within days.
Next step
Request a quote
Briefly describe your business and what you would like to insure. A broker will contact you within one working day.
- Phone
- 0883 990 906 · Viber
- info@inscenter.bg
- Address
- 46 Akad. Stefan Mladenov St., office 13A, floor 6, section A, Sofia
- Opening hours
- Mon – Fri, 9:00 – 17:00
