Computer Contractor Professional Indemnity Cover

October 23, 2008 · Filed Under Computer Contractor Professional Indemnity Cover 

With all the planning in the world, things can sometimes go wrong. No matter how much effort goes into a computer contractor’s training, mistakes can still be made on the job. More serious errors could lead to a client suffering a financial loss and this can lead the contractor vulnerable to a legal case. Defending such actions can be extremely costly, but  computer contractor professional indemnity cover  can help to cover these fees.

Even a successful defence could bring a contracting firm to its knees thanks to the cost involved, but professional indemnity cover will pick up the tab and can even pay for damages that may be awarded to a successful claimant. This will allow a computer contractor to go on running their business without worrying about going under because they cannot pay a lawyer’s bill.

Many types of policy can be tailored to a contractor’s individual needs. Professional indemnity cover will normally also protect an individual should they face a claim that they have committed libel, slander, or have defamed someone unintentionally. Other typical inclusions involve cover in the event of a breach of copyright or confidentiality. Should an employee of a contractor behave dishonestly and steal from a client, a policy will usually pay for the legal defence of this and any subsequent compensation. 

When taking out cover there will be a monetary excess on the plan, as with many types of policy. There will also be limits to the cover, up to £1 million in legal fees or compensation, for example. These excesses and limitations will normally directly relate to the cost of a policy. Besides this, it’s also common to consider a policy which will defend a possible claim which relates to an event which happened before the policy was bought. It is also possible to arrange ‘run off’ cover for after someone retires or stops trading.

Computer contractor professional indemnity cover  therefore eliminates any worries related to legal cost should the contractor end up being sued because of a mistake. Although such cases are by no means commonplace, they do happen and can be crippling to a business unless the right protection is in place.


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