Legal action need to be a worry with computer consultants indemnity insurance
Depending on the history of a business, the idea of making a mistake on an assignment may seem remote or may not even have been considered at all. Computer consultants regularly take on projects with vast amounts of responsibility, sometimes holding the entire network of a company in their hands. Of course, with the right training and preparation things do tend to go smoothly, but a simple error could sometimes lead to a loss of data or capacity which could temporarily damage a client. This is where computer consultants indemnity insurance comes in.
Essentially a form of professional cover, indemnity insurance protects any kind of business providing a professional service in the event it is accused of making a mistake. It applies to freelances and companies, and essentially protects them against the damage which can be caused by large legal fees.
For example, a computer consultant might be working on a file transfer and back up system for a client. If an error is made and a large amount of information lost by accident, the client concerned could lose information and money. They may then seek to take legal action to recover their costs, feeling they have suffered what is known as a financial injury. Defending the case will mean hiring legal help which can be expensive. An indemnity cover policy would protect against these claims, effectively making sure the insurer picks up the bill, not you.
A computer consultants indemnity insurance policy of this type will normally protect against errors, omissions, and even acts of negligence. It will also pay a consultant’s fees if they are accused of breaching someone’s copyright or confidence or even if their employees face accusations that they have acted dishonestly.
The important thing to remember is that a policy will not pay out for fees indefinitely, and you will need to agree a limit on it with your insurer when you buy it. However this is quite flexible and you will need to make a judgement based on the size of your clients and the business you normally undertake. If you regularly work in public, many computer consultants indemnity insurance policies can be configured to include public liability insurance as a handy extra.
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