Computer Consultants Indemnity Insurance
Setting up an IT consultancy business or just going it alone as a computer expert can be a rewarding experience, particularly when it takes off and leads to a good reputation within the industry. However, with each contract comes a level of legal risk. As a hired professional, a computer consultant is expected to make recommendations and complete work that delivers results. With many firms almost completely relying on IT, a mistake can be costly and lead to a legal claim. This is why computer consultants indemnity insurance can be a lifeline in the right circumstances.
Indemnity insurance protects a company or individual should they face a legal claim from a client which has suffered financial harm due to a mistake which has been made. Say a computer consultant installs virus protection software for a firm, but an error made during installation means it is not working correctly. If a virus then gets into the firm’s system because of the mistake and causes loss of data, the firm may sue the consultant for any financial loss they experience. An indemnity insurance policy would cover a consultant’s legal bills which are run up defending the case. It will even cover the cost of damages awarded to a client, subject to certain limitations.
A computer consultant’s indemnity insurance policy will also usually protect an individual or firm should they face a legal case which alleges they committed libel or slander or that they defamed a client. It will also kick in should a policyholder face a claim that they breached a client’s confidentiality or that they breached someone’s copyright. Indemnity insurance will also pay out to defend a case which may result from the dishonest actions of an employee.
The cost of a policy will normally depend on what level of cover the firm or individual asks for. For example, a computer consultant looking for cover which stretches to £50,000 in legal fees can expect a smaller premium than if they want cover for legal bills up to £2 million. Although it involves an outlay, computer consultants indemnity insurance can help a company or sole trader quickly defend their reputation and even allow them to continue working as normal in the face of a legal claim.
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