Common features of Computer contractor professional indemnity UK policies
Risk is a part of business and in some circumstances you can plan to deal with the worst of problems, while others might require extra support. Legal concerns are more of an issue now than they were perhaps 10 years ago for many firms, as individuals and companies tend to be more aware of their legal rights. This means clients may be more minded to take action if they feel they have lost money due to the behaviour of someone like a computer contractor. They may make valid or invalid claims that an expert has made an error which has cost money, meaning computer contractor professional indemnity UK policies have become more prominent.
Professional indemnity insurance pays out in the event that somebody faces a legal challenge having been accused of making a mistake, error, omission, or act of negligence in their day to day business. In short it will cover someone’s legal expenses which are run up fighting a case, as nearly everyone will require specialised legal help in such circumstances. It even covers the cost of compensation if it is awarded against the policyholder after they lose a case.
However, that is not the be all and end all of computer contractor professional indemnity UK policies, as many include some interesting extras and flexible add-ons. For example, retroactive cover is something which can be included with many policies, either as part of a basic package or for an extra fee. This provides protection for a policyholder against a legal challenge which arrives in the future but which relates to something which happened in the past. For example, a computer contractor might complete a job in February believing everything is fine, buy their insurance in April, and then receive formal notification of a legal action relating to the February job in September. In such circumstances retroactive cover may provide legal protection even for this.
Another common feature is something known as runoff cover, which acts in a similar way but is more tailored towards firms which wind down, change insurer, or for sole traders who decide to retire or switch jobs. It protects somebody for a period after they have ceased trading, as they will still be vulnerable to legal action for a time.
When considering computer contractor professional indemnity UK plans, it may be worth paying particular attention to the features which are included in your deal. Most but not all policies will payout in the event that the policyholder is accused of accidentally breaching intellectual property rights or breaching someone’s confidentiality unintentionally. It’s also not unusual to find policies which protect somebody if they are accused of losing or damaging a client’s important data or documents, or if they are accused of defaming somebody. Other things to look out for include protection if an employee of a firm is accused of acting dishonestly by a client.
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