Buying computer contractor PII
A freelance computer contractor or business might feel they have enough expenditure to worry about with the likes of typical overheads related to a premises, regular equipment and components costs, staff wages, and vehicle-related bills. All this might mean that insurance is the last thing on a businesses’ to-do list. But the right cover can prove essential to the survival of a firm in some circumstances, even if it is sometimes not necessary to claim for years at a time. Computer contractor PII, as a cost, can also be recorded as a business expense for the purposes of taxation.
To first clear up a common question, PII simply stands for professional indemnity insurance. It is a type of cover popular with almost any business which provides professional advice, from architects to private medical practitioners.
It is designed to help cover somebody if they face a legal challenge following a mistake or omission or act of negligence committed during regular business. A genuine but serious error can lead to a client losing money, and this may prompt them to take legal advice on how they can recover costs. For example a computer contractor might be asked to install a software application on the computer network of a high-profile company. If the application then turns out to have a virus due to a mistake made by the contractor, damage may be done and money may be lost, leading to a legal claim. Computer contractor PII will help pay any legal bills which result from defending the action and will even cover the cost of compensation which might be awarded to the successful claimant.
Computer contract a PII can be tailored for a specific applicant. This means different levels of cover are available from thousands of pounds worth of bills up to millions of pounds worth of bills. Not every company will need masses of protection – and policies are normally priced accordingly. Excesses also apply, which can often be negotiated with the insurer to alter the costs.
In order to qualify for cover, the mistake someone is accused of making must be genuine and must not be malicious. An insurer will then payout for legal bills up to the limit of the policy, and it does not matter how long or how detailed the case gets – provided cover is in place, the solicitor’s fees will still be paid.
This can take the pressure off a business and enable it to go on running virtually as normal while still fighting a significant court battle. The alternative is obvious – a huge legal bill which could threaten the financial future of a company and all the associated stress which comes with such a situation. The average computer contractor PII policy can also include things like protection for breach of confidentiality or copyright, and can even include public liability – providing a safety net for the policyholder which may one day save the life of the business.
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