How Computer consultants indemnity insurance can save legal fees
Whether you are a lone freelance or running a successful computer consultancy firm with dozens of employees, some professional cover options are worth considering, particularly if there is a fair amount of responsibility involved in the company’s contracts. For example, some computer consultants may be hired to completely overhaul a company’s information technology system, which can involve a lot of chopping and changing networks and handling of important data. If a mistake was ever made which lost a company money, the consultancy firm could find themselves in the middle of a dispute and possibly on the wrong end of legal action. As a result some firms opt for computer consultants indemnity insurance.
To give an example as to when this kind of cover might be needed, a computer consultancy might be hired install an anti-virus and firewall system for an accountancy firm. If there was an error made in the installation, which meant the company’s systems were compromised and data was stolen, the client may lose money if as a result. They could also lose important data and information such as client databases. They may then seek to recover the costs of this through legal action, IE by suing the computer consultants.
Indemnity insurance kicks in by paying for legal defence fees for the policyholder, meaning they potentially do not have to pay a penny towards the cost of hiring a solicitor to fight their case. Should their defence by unsuccessful, and the client be awarded compensation, the indemnity insurance will even cover the cost of this, providing the policyholder is still within their stated policy limit.
In general computer consultants indemnity insurance will pay out if the policyholder is accused of making a costly mistake, error, omission or even an act of negligence in their general business. It also pays out in the event of a number of other legal eventualities, including allegations that someone has unintentionally infringed intellectual property rights, breached confidence or copyright, or even been accused of defaming somebody.
This is a kind of insurance which can be useful for anybody who provides their advice and professional services for a living, as they can be vulnerable to legal action from unhappy clients. It’s often possible to select a level of protection which is appropriate to the size of a business, as a maximum payout limit for one firm will not be the same as one for another.
Computer consultants indemnity insurance can be tailored to a firm with a multi-million turnover or for a company with just one self-employed freelance and premiums are adjusted accordingly – policies can pay out for millions of pounds in legal protection or thousands, depending on the type of business and what a potential policyholder is looking for.
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