Getting adequate cover with computer consultants indemnity insurance
It is the nightmare scenario that every manager hopes will never happen to their business – although the firm’s track record is impeccable, a simple mistake on a routine job leads to a client losing a large amount of money and making a legal claim to recover what they have lost. This leads to a court appearance, a massive legal bill, and even a big chunk of compensation which must be paid to that client. Computer consultants who regularly handle client’s data and install network systems may be particularly worried about this scenario – but computer consultants indemnity insurance could help take away the concern of what would happen if such a nightmare became a reality.
Indemnity insurance helps protect an individual freelance or business if they face legal action as a result of an allegation that they have made a mistake, error, omission or act of negligence during their day to day job. Legal action often only arises after a client has suffered a significant financial injury – that is, they have lost a lot of money as a result of something like a firewall system failure or data loss.
Indemnity insurance will pay out money towards the legal costs of defending such an action. Specialist solicitors will often need to be hired and they can be expensive, but the insurer will pick up the tab provided the company’s mistake was not a malicious one.
Of course, there are set limits to each policy and an excess can also apply, but the average computer consultants indemnity insurance policy can be tailor made for the business concerned. Costs can be kept low depending on what level of cover is needed-a smaller firm will not need a payout limit of a much larger multinational, for example.
Besides regular quite straightforward errors, computer consultants also run other legal risks. So, indemnity insurance can also include public liability insurance and protection should the business or individual be accused of breach of confidence or copyright.
Note also that cover will typically apply right from the first hearing all the way up to an appearance at the high court – the latter being unlikely, but not impossible – provided the computer consultants indemnity insurance cover is sufficient, it will last right the way through a case all the way to its conclusion – and will even pay out any compensation awarded, subject to agreed limits.
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