IT Contractor Insurance - Guard Against The Unexpected
IT Contractors are only human - however experienced, skilled and talented one might be the odds of making a mistake, at some point in their career is high. No-one is immune. Thankfully, in most cases errors & mistakes are quickly rectified and forgotten with no serious consequence. Others, can easily bring an IT Contractors business crashing down. Error or no error, in todays litigious society, it pays to guard against the unexpected.
As professionals, upon whose skills and advice other people rely, IT contractors owe their clients a legal duty of care. This means if mistakes are made or if the IT Contractor is deemed to be negligent, by delivering mediocre code, or designing a faulty network system for example, they have a direct financial responsibility to their clients for their errors and may be liable for compensation.
So how can IT Contractors protect themselves against potentially costly exposures ?
Professional Indemnity Insurance - A Cloak Of Security
There are a number of IT contractor insurance products available, the most important of which is professional indemnity insurance. Professional indemnity insurance protects IT Contractors if they are accused of losing a client money through bad work. The insurance will pay the legal costs to defend one's reputation and also the cost of any compensation awarded should the defence prove unsuccessful. A cloak of security if you like.
In addition to negligence and breach of duty or care, a professional indemnity policy also provides protection if:
- you unintentionally breach a written contract
- you infringe intellectual property rights
- client documents in your care are lost, stolen or damaged
- a director or employee is involved in the theft of client’s money
- a defamation claim (also known as libel or slander) is brought against you
With professional indemnity premiums starting from as little as £160 per annum, its a small price to pay for complete peace of mind. More importantly, as claims against IT Contractors surge, can you afford to be without it?
