Computer Contractor Professional Indemnity Cover

October 26, 2008 · Filed Under Computer Contractor Professional Indemnity Cover 

Although it has previously been associated with the likes of accountants and architects, professional indemnity cover is now seen as a must for a vast range of professionals who specialise in providing expert advice and services to clients. This is because a mistake which leads to disruption or financial loss to a client can lead to a legal claim which may cost thousands of pounds to defend. If a claimant is awarded compensation, the cost rises even further. Computer contractor professional indemnity cover is designed to protect the contractor should they face a claim following a mistake or negligent act. It will even help to cover the cost of defending claims that are invalid and dismissed by a court.

In today’s more legally-aware society, the chances of being sued are far greater than they once were. Many companies will actually ask that a contractor has professional indemnity cover in place before agreeing a deal with them. Therefore this type of insurance is regarded as a basic necessity by many individuals. Professional indemnity cover will often step in for a range of eventualities, including if a contractor is sued for libel or slander having unintentionally defamed someone during the conduct of their business. It will also provide protection if a policyholder is accused of breach of copyright or confidentiality. Public liability cover, paying legal fees which result from a negligence claim made by a member of the public, will also often feature.

Computer contractors will often have to deal with sensitive or important data. Should an error mean that this data is somehow lost or destroyed, an indemnity insurance policy will help the contractor pay for the defence of a subsequent legal case – particularly handy for experts carrying out maintenance on networks, for example.

Computer contractor professional indemnity cover will typically included excesses, as with many types of insurance. Policies will also often have agreed limits. This means they will only pay legal fees up to a certain point – £200,000, for example. This limit will have a direct bearing on the policy cost and an individual contractor must balance out what they can afford with what level of cover is acceptable.

Time is also an important factor to consider when getting hold of legal cover. Claims can often arrive months after the related event took place. This means policyholders should take care when changing insurance provider – will the new insurance provider include a ‘retroactive’ period meaning they will take on any historical claims? The same time delay concerns mean cover may also be needed for a while after a contractor retires or goes into a new career. Once an expert has found computer contractor professional indemnity cover which suits their needs, they can then get on with the job in hand, safe in the knowledge their business will be safe should an unlikely mistake occur.

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