IT contractors insurance – getting a suitable deal

September 30, 2010 · Filed Under IT contractors insurance 

If you are considering IT contractors insurance, then you are making an important, – and some may say, valuable – decision. This professional indemnity insurance may help act as a financial buffer for your company against claims from third parties, as well as help with legal fees.

What are its benefits?

Professional indemnity insurance provides your business with protection in respect of any legal liability which arises out of the exercise and conduct of your business.

There are different types of professional indemnity insurance policies available for businesses and contractors, all which are designed to help minimise any financial loss (which in turn may help reduce personal stress) if a claim is made against you.

In the event of a successful claim, typically the policy can help defend a claim against you as well as cover you for any damages you become liable for. Certainly, having this form of risk management in place in the shape of a professional indemnity insurance policy may help your business survive if things get rocky and a client sues you for damages.

Buying it

So, where can you buy IT contractors insurance? It may be worth considering buying the cover from a specialist provider. Buying it from someone who has expertise within your particular sector may help you find the right product, rather than trying to go for an “off-the-peg” type of policy that a traditional or mainstream insurer may offer.

Considerations

So, what do you need to bear in mind when choosing your insurance?

First of all, do note that as with most insurance policies, generally you will be liable to pay an excess on your policy.

Look at the terms and conditions as well as any limitations, to see exactly what the policy will cover and any obligations you may have in order to take advantage of the protection.

With the different levels of cover often available, it is important that you choose the right one to ensure you are adequately protected. For example, some clients may expect your company to have a minimum amount of personal indemnity insurance in place before they will allow you to carry out work for them.

As touched upon above, policy terms and conditions for your IT contractors insurance may typically vary among the different providers, so check the small print to confirm the amount of cover you have; any excesses; and how long a policy must be in force for before you can claim.

Finally, to protect yourself and your livelihood does not have to be a time consuming exercise. A specialist provider of IT contractors insurance may help find you the right solution for your business quickly and cover can often be bought online. Finding out more may be a sensible idea.

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