How can computer consultants indemnity insurance help a business?
What scares some companies more than recessions and slow sales is a legal claim from a client, and rightly so. Some legal cases can drag on for months or even years, costing the parties involved thousands of pounds. Claimants can rightly or wrongly feel they have lost money as a result of a consultant, and therefore look to win compensation through the courts. Computer consultants which deal with clients’ IT systems and security could face such cases if they ever made a mistake, and computer consultants indemnity insurance can provide a lifeline in the right circumstances.
This is a type of cover which will kick in and pay legal bills for a policyholder should they be accused of making a mistake, omission, or committing an act of negligence in their general duties. For example, a computer consultant might be hired to install a new series of computers for a client. If the system is connected up wrongly and unsecured, it could be targeted by hackers or end up with a virus. The client could then sue to recoup any money they lose as a result.
Indemnity insurance will pick up the cost of hiring a legal team to defend the case. If a dispute or claim cannot be settled amicably then a legal hearing can be the consequence. This takes attention away from the day-to-day running of the business and can cost thousands of pounds or more. Indemnity cover will take away some of the pressure by paying for the legal assistance which is required. Different levels of cover are available, resulting in different premiums, and protection can be flexible depending on the size of someone’s business and who they deal with.
Computer consultants indemnity insurance will often include some extras like public liability cover in some cases. You can also normally expect protection if you are accused of unintentional defamation, breach of confidence or copyright, and even the dishonesty of a any employees which are part of your business. Protection can even be arranged so that it applies for a cooling off period, after you have retired or wound down the consultancy. It can even be arranged to apply to any future cases which may arrive and date back to the time before you arranged the cover.
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