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.
Just about everybody has experienced that moment when they realise they have deleted or lost something forever and nothing can be done about it. Mistakes do happen, and even hired computer consultants can slip up while on a job. The difference is if the error is a professional one made when working for a client, it can have considerable impact on the assignment and may even lead to the customer taking legal action if they feel they have lost money. This is typically referred to as being sued. Computer consultants indemnity insurance can protect against this, by providing straightforward payouts towards your legal expenses.
Acting as a kind of backup, this cover can pay for the cost of legal defence and even any compensation awarded against you. It normally applies if you’re accused of making an error, mistake, omission, or even committing an act of negligence in your work as a computer consultant. Normally an honest mistake will not lead to anything, but if it is serious enough to have lost a client profit, you could find yourself on the wrong end of a legal action.
Besides being stressful and unpredictable, legal issues can also be costly as they may drag on for months or even years and run up considerable solicitor’s fees. If the case is lost you may then be ordered to pay compensation. Indemnity insurance can help you towards the cost of both of these, up to a set policy limit which is agreed when you take out the insurance.
Of course, hopefully you would never need to activate your computer consultants indemnity insurance, but if you do it can cover you against claims you have lost an important client’s data or documents, accidentally breached confidentiality, unintentionally infringed intellectual property rights, or even defamed somebody through libel.
The cost of this kind of insurance simply involves a premium which is typically linked to your maximum cover limit. This can be hundreds of thousands of pounds or even millions of pounds depending on the company and what is required. The higher the policy limit, the higher the cost of the computer consultants indemnity insurance.
Many professionals may worry about legal risks but do little to actually find out how they can get protection against them. Computer contractors are a group which may provide a high level of professional advice and services, and as a result may sometimes run the risk of legal action if they get something wrong. A costly error could mean work or advice is useless, or worse still costs a client money. This is why many people see computer consultants indemnity insurance as a vital tool.
Some people may feel protection for contents and equipment is enough, while others may already be paying for a public liability policy. But being sued because of a genuine mistake can be unpleasant and expensive. To give an example, a computer professional might be hired to transfer data from one hard drive system to a completely new way of storage. In doing so they may lose company files by accident, costing the client money. The client may then decide to seek compensation through legal means.
In such circumstances computer consultants indemnity insurance would pay for the cost of your legal defence and even the cost of any compensation which would be awarded against you, up to certain limits.
When you face legal action you’re probably going to need legal advice, unless you plan to defend yourself. This advice can be expensive but crucial if you wish to defend a case efficiently. A policy will pay for your defence up to an agreed limit, which is decided at the start of your policy.
Besides mistakes, indemnity insurance typically pays out for allegations that you have breached confidence or copyright, acted negligently, or lost important data or documents belonging to a client. If you are a company with a number of employees, you would still be covered even if a client says they have lost out because an employee has acted dishonestly and perhaps stolen or defrauded a client.
Computer consultants indemnity insurance need not be overly expensive either, as depending on the limit you want, you should be able to get something which is affordable. The bigger your businesses and the bigger your clients and contracts, the higher level of limit you are likely to need. You can also select a number of options to go with your policy, including public liability insurance in some cases, and cover for after you have wound down a business or retired.
Even with the best planning in the world, some of the more well-trained professionals can still make mistakes. Depending on the circumstances some errors can be simply dealt with by a straightforward apology and a shrug of the shoulders. But if you’re a hired professional, a slip can lead to serious consequences, particularly if a client loses money. Hired professionals who deal with IT-related contracts may have the future of some of their customers businesses in their hands, and as such some see fit to take out computer consultants indemnity insurance.
This is a form of professional cover which acts as a kind of safety net, paying your legal fees if you are ever formally accused of making a mistake. Say a computer consultant is hired to install a new broadband network – if there is a mistake in the work which leads to a company being offline for days on end, they may lose a considerable amount of money and look to take legal action to recover it. In such circumstances Indemnity insurance would pay the cost of defending the policyholder, and would even award any compensation which may be ordered by a court.
This might sound like a worst case scenario, but legal risks are a serious concern for anyone offering their advice on a professional basis. Computer consultants indemnity insurance is also product designed to protect against some of life’s more common legal risks. For example, it protects against the likes of breaches of confidence or copyright, defamation, and the loss or damage of a client’s data or documents. All of these things are potential hazards for businesses and computer contractors.
The cost of this type of computer consultants indemnity insurance will vary and the cover limit will often affect it. An insurance company will not pay out legal fees and compensation indefinitely, so there needs to be a cap agreed at the start of a policy. For example, a small contractor business with only one or two employees might want cover for a few thousand pounds worth of expenses, while a larger firm might want protection for hundreds of thousands.
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.
Every business tries to look out for strengths, opportunities and threats. Most companies face difficult times during a downturn, or can lose out because a key member of staff decides to move on. Falling behind in terms of innovation compared to the competition can also be a fatal blow, but there are other less obvious risks to any company, including the threat of a legal claim. Although being sued is never a pleasant experience, a computer consultants indemnity insurance policy can take away some of the damage it would otherwise do.
A computer consultant is arguably more at risk than some other professionals due to the heavy reliance placed on them by modern businesses. One network error can lead to a corporation losing a large amount of money, meaning you could take the blame and face a legal challenge. Although many people operating in the sector have indemnity insurance, not everyone understands what it does or has got around to sorting out. It simply pays your legal bills if you are accused of making an error, omission, or act of negligence.
Of course, being sued means you will have to defend yourself in court. Representing yourself is never a particularly attractive or effective option, so you will need to hire legal help which will have to be paid for. Then, if you were to lose a case, the applicant might be awarded compensation, which you will also have to pay. Depending on how much all this costs, you could be left with a sizeable bill which could seriously damage your business and even threaten its future.
Computer consultants indemnity insurance would pick up the cost of both hiring legal help and pay the compensation, subject to certain pre-agreed limits. They will also often be an excess on the policy, as with other types of insurance and this can be used to alter your premium.
A policy normally also covers you if you’re accused of losing or damaging a client’s important documents, breaching someone’s confidentiality or copyright, and will even guard against any claims made that the company’s employees have acted dishonestly.
Computer consultants indemnity insurance is therefore a relevant and valuable tool for anyone either thinking of setting up or who has already started work as an independent freelance or agency.
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.
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.
Handling a large IT security operation or simply installing an effective firewall system is usually a fairly simple task, especially for a professional IT consultant. The right training and planning usually ensures everything goes smoothly and to the benefit of the client involved. But mistakes do happen, even when the best in the industry are carrying out the job. Losing a client’s data or accidentally damaging their network could lose a company a substantial amount of money in some circumstances. This leads many professionals to get computer consultants indemnity insurance as a precaution.
Although indemnity cover will not simply fix a problem immediately, it will pay the potentially large costs of hiring legal help to defend a case following a consultant’s mistake, omission, or act of negligence. How much financial help is given will depend on the individual policy as different levels of cover are available. For example, a consultant may decide they need £25,000, £50,000 or £100,000 of cover for potential costs, whereas a larger company with many employees might want protection up to £1 million or more, with premiums typically being priced accordingly.
Computer consultants indemnity insurance will also normally go beyond mere mistakes. It will cover a whole range of legal eventualities such as an action for defamation, an accusation that intellectual copyright has been infringed, and even cover for the costs of defending a claim for compensation following an act of dishonesty from an employee.
Sometimes a legal claim will arrive a long time after an event has taken place, and may even date back to when an insurance policy started. For example a computer consultant may start trading one month, complete several jobs for clients, finalise an insurance policy in the third month, and then receive a legal claim dating back to month one. Thankfully many insurers allow policyholders to select a ‘retroactive’ cover feature for such circumstances, which protects against historical claims. For the same reasons, ‘run off’ or ‘over run’ cover periods can normally be arranged for when a computer consultant changes jobs, stops trading, retires, or switches insurer. With almost every angle covered, a computer consultants indemnity insurance policy will therefore protect a professional against unfortunate legal pitfalls, allowing them to concentrate on completing contracts without worrying about the possibility of litigation if a mistake happens to be made.
Setting up an IT consultancy business or just going it alone as a computer expert can be a rewarding experience, particularly when it takes off and leads to a good reputation within the industry. However, with each contract comes a level of legal risk. As a hired professional, a computer consultant is expected to make recommendations and complete work that delivers results. With many firms almost completely relying on IT, a mistake can be costly and lead to a legal claim. This is why computer consultants indemnity insurance can be a lifeline in the right circumstances.
Indemnity insurance protects a company or individual should they face a legal claim from a client which has suffered financial harm due to a mistake which has been made. Say a computer consultant installs virus protection software for a firm, but an error made during installation means it is not working correctly. If a virus then gets into the firm’s system because of the mistake and causes loss of data, the firm may sue the consultant for any financial loss they experience. An indemnity insurance policy would cover a consultant’s legal bills which are run up defending the case. It will even cover the cost of damages awarded to a client, subject to certain limitations.
A computer consultant’s indemnity insurance policy will also usually protect an individual or firm should they face a legal case which alleges they committed libel or slander or that they defamed a client. It will also kick in should a policyholder face a claim that they breached a client’s confidentiality or that they breached someone’s copyright. Indemnity insurance will also pay out to defend a case which may result from the dishonest actions of an employee.
The cost of a policy will normally depend on what level of cover the firm or individual asks for. For example, a computer consultant looking for cover which stretches to £50,000 in legal fees can expect a smaller premium than if they want cover for legal bills up to £2 million. Although it involves an outlay, computer consultants indemnity insurance can help a company or sole trader quickly defend their reputation and even allow them to continue working as normal in the face of a legal claim.