Big legal bills can be the scourge of some businesses, particularly if they get wrapped up in a longstanding dispute, which is why many companies have looked to insurance to guard them against some of the consequences of a court case. Consultants who offer advice as an outside agency may be particularly at risk, which is why some people have looked to professional indemnity policies. Computer consultants can be included in this group, and there are some specialist computer contractors professional indemnity UK policies.
As hired professionals, consultants are expected to deliver results and a high standard of service. If the client felt someone like a computer professional had fallen below this expectation and had actually cost them money, they could launch a legal action. For people who do not have a policy in place this can mean paying legal bills to help them defend a case, which can have a dramatic impact on a business, particularly if it has limited resources.
Computer contractors professional indemnity UK plans work by paying someone’s legal bills if they are accused of making a mistake, error, or act of negligence in the course of their business. Deals can apply to individuals or to companies, and simply pay someone’s legal fees, even covering the cost of compensation if it should be awarded against the policyholder following a court case.
Insurance like this is not conditional on the claim against you being invalid – even if what the other side is saying is true, you will still be entitled to cover. However, among the common conditions on a policy like this is that anything you have been accused of doing must not have been done maliciously – ie any mistake that you have made and which has resulted in the case must not have been deliberate.
Some of the common circumstances which are protected by a policy like this include claims that you have accidentally damaged or lost a client’s important data or documents, that you have unintentionally infringed copyright in the course of your work, or that you have defamed somebody. Breach of confidentiality is also often included in cover, as is the allegation that any employees of a computer consultancy firm have acted improperly or dishonestly, which might perhaps include an allegation from a client that they have been defrauded by an employee.
Computer contractors professional indemnity UK cover deals always come with a policy limit – this is because insurers do not pay out towards legal costs indefinitely and limits can be set according to the size of a business. So a company which has only a handful of consultants or perhaps only involves a single freelance will typically need a cover limit which is smaller than a large multinational IT firm, for instance. Premiums not only depend on the cover limit but may also be influenced by the nature of the business and how it agrees contracts and work with clients.
Risk is a part of business and in some circumstances you can plan to deal with the worst of problems, while others might require extra support. Legal concerns are more of an issue now than they were perhaps 10 years ago for many firms, as individuals and companies tend to be more aware of their legal rights. This means clients may be more minded to take action if they feel they have lost money due to the behaviour of someone like a computer contractor. They may make valid or invalid claims that an expert has made an error which has cost money, meaning computer contractor professional indemnity UK policies have become more prominent.
Professional indemnity insurance pays out in the event that somebody faces a legal challenge having been accused of making a mistake, error, omission, or act of negligence in their day to day business. In short it will cover someone’s legal expenses which are run up fighting a case, as nearly everyone will require specialised legal help in such circumstances. It even covers the cost of compensation if it is awarded against the policyholder after they lose a case.
However, that is not the be all and end all of computer contractor professional indemnity UK policies, as many include some interesting extras and flexible add-ons. For example, retroactive cover is something which can be included with many policies, either as part of a basic package or for an extra fee. This provides protection for a policyholder against a legal challenge which arrives in the future but which relates to something which happened in the past. For example, a computer contractor might complete a job in February believing everything is fine, buy their insurance in April, and then receive formal notification of a legal action relating to the February job in September. In such circumstances retroactive cover may provide legal protection even for this.
Another common feature is something known as runoff cover, which acts in a similar way but is more tailored towards firms which wind down, change insurer, or for sole traders who decide to retire or switch jobs. It protects somebody for a period after they have ceased trading, as they will still be vulnerable to legal action for a time.
When considering computer contractor professional indemnity UK plans, it may be worth paying particular attention to the features which are included in your deal. Most but not all policies will payout in the event that the policyholder is accused of accidentally breaching intellectual property rights or breaching someone’s confidentiality unintentionally. It’s also not unusual to find policies which protect somebody if they are accused of losing or damaging a client’s important data or documents, or if they are accused of defaming somebody. Other things to look out for include protection if an employee of a firm is accused of acting dishonestly by a client.
Insurance is of course a legal requirement for anyone who wants to drive a car, but is also essential for certain types of business. For example, the likes of solicitors may be subject to certain laws which require them to have something called professional indemnity insurance. While not all forms of business require this kind of professional cover, anyone who offers advice for a living may want to consider it. This can include computer contractors, who will often have a considerable amount of responsibility and a high duty of care to clients when handling certain jobs. Computer contractor professional indemnity cover can be a valuable safety net and can even help somebody out of what would otherwise be financial meltdown if they face a court case.
The thought of being sued is often associated with personal injury claims or perhaps more regularly with solicitors, private doctors and architects. But as hired professionals, computer contractors are expected to deliver a high standard of service. If a client ever felt they had fallen below this expectation and had even lost them money, they could sue.
A higher level of legal awareness can also mean a higher level of risk for outside consultants, which is why this kind of insurance has proved more popular recently. To summarise, it pays for someone’s legal defence in the event they are facing legal action due to a real or perceived error in their work. For example, they could face a court case if they accidentally wiped hard drive and lost a client money.
Computer contractor professional indemnity cover would pay the legal defence fees run up when fighting a case, and would even pay any compensation which might be awarded to a successful claimant. What is particularly useful about this kind of insurance is the fact it is not dependant on whether or not the claim against you is genuine or successful. The policyholder will often get a payout whether the claim against them is valid or not.
It typically pays out in the event that somebody is formally accused of making a mistake, error, omission or act of negligence in their day to day business. But it will also often payout for some extra eventualities, such as allegations someone has breached confidence or copyright or the claim that an employee of a consultancy firm has acted dishonestly and perhaps stolen from or defrauded a client.
Another useful thing about this kind of insurance is that it continues to pay out for your legal costs no matter how far your court case gets through the system – provided you are still within the policy payout limit, it will cover you right the way through to the high court in the unlikely event this happens.
The computer contractor professional indemnity cover policy payout limit is important because past this point an insurance company would not pay out for any more legal defence or compensation. Larger firms may have top limits on the policy stretching to millions of pounds, while smaller companies may not need this and may have something more in the region of hundreds of thousands of pounds.
While many businesses have a form of professional indemnity cover in place, many may be not fully aware of the options on their policy and exactly what it can do for them. Typically a policy goes beyond simply covering any legal bills which arise from mistakes made on a job. They can be used to cover different vulnerable time frames and can even include extra types of insurance. Computer contractor professional indemnity cover will often be no different and will also be quite flexible depending on the insurer.
While a typical professional indemnity policy protects against legal bills including compensation following mistakes or acts of negligence, many cover providers can provide a level of public liability insurance with their deal. This could be useful for computer contractors who have recently started to regularly work in the public domain or who have taken on a premises which is regularly used and visited by the public.
Many people often also associate computer contractor professional indemnity cover with wiped hard drives and broken networks, but it can also pay out if the policyholder is accused of accidentally breaching copyright or confidence. An intellectual property infringement could occur if an IT contractor hired to produce a website accidentally reproduces one which is identical or could be perceived to be identical to one which is already in existence and was produced by a rival firm.
Professional indemnity insurance also often pays out if the policyholder is accused of defaming somebody through libel, a potential danger when it comes to Internet publishing, and which can also be useful for some computer contractors.
Other common options include what is known as retroactive cover. This is a useful tool which allows the policyholder protection for legal claims which are lodged with them in future but which relate to something which happened in the past, so long ago that it applies to a period before they even took out the cover. Of course, for this to apply, the policyholder must not have had any notification that a notice might be imminent before they took out the policy.
There is also runoff cover, which can be arranged to provide protection for a firm after it has stopped trading or while it is inbetween insurers. An extra period of protection can simply be attached at the end of a policy, which can be helpful for a computer consultancy which is worried about the possibility of any claims arising after it has wound down. Just because a firm has decided to swap insurers for a time or because an individual is thinking of retiring does not mean that they will be immune to legal action relating to something which happened in the past.
Computer contractor professional indemnity cover can therefore be more flexible than many first believe – it can also include an excess, as with a common car insurance policy, which can be of use to anyone looking to bring down the cost of their premium.
Any computer contractor who has had to pay out compensation due to a claim made against them will tell you just how important computer contractors professional indemnity UK insurance is. No professional starts a job thinking that something could go wrong. When you are hired by a company you assume that you will go in, do the job, get paid and repeat the process with another company. However unfortunately there are times, even if it is not your fault, where a claim could be made against you for a job that you have completed.
Computer contractors professional indemnity UK insurance is designed to protect you in a number of ways. Without it you could end up losing your business and seriously damaging your reputation.
When Computer Contractors Professional Indemnity UK Insurance Could Help
If you think about the potential things that could go wrong during a job, you will see just why computer contractors professional indemnity UK insurance is essential. From mistakes that are your fault such as leaving equipment around which the third party trips over and injures themselves, to a computer system crash that loses mass data, there are many instances where a claim could be made against you.
Of course there are ways in which you can minimise the risk of a claim being made against you and one of those ways is to keep a record of everything. Every job that you do, write down exactly what you did, who was around and how the job turned out. That way, if a claim is made against you then you have something to back you up in court. Of course it would help if you got the document signed by the third party so that they agree with your version of events, otherwise you could be accused of making it up.
Whether you have a record of the job that you completed or not, computer contractors professional indemnity UK insurance is still essential to have. Defending yourself against a wrongful claim can be expensive. In fact, the legal fees could be so high that you may have to take out a loan or sacrifice your business to pay for them. Why risk that when professional indemnity insurance could protect you and give you the funds that you need?
Overall computer contractors professional indemnity UK insurance is something that all computer contractors should have. You can never foresee what will happen during a job and so it always makes sense to protect yourself just in case.
Are you looking for computer contractor professional indemnity UK insurance ? If so then there are a number of things that you need to know.
Indemnity insurance is an absolute must for any UK computer contractor. When you are working with technology you cannot always guarantee that nothing will go wrong. Systems crash, computers malfunction and there is not always a clear explanation as to what is actually wrong with them. If a mistake is made, whether it is your fault or not, the company could make a claim against you and that can be potentially expensive!
Understanding Computer Contractor Professional Indemnity UK
Computer contractor professional indemnity UK insurance policies are there to help you against the following:
- Breach of Confidentiality
- Data Loss
Data loss in particular is a possibility when you are dealing with computer problems. Even when you think you know exactly what is wrong with the system, something could go wrong and large amounts of company data could go missing. This would obviously be a huge problem for the company and if it were to occur they would no doubt sue you for negligence.
In some cases computer contractor professional indemnity UK insurance can help to protect your company if you hire out computer contractors. Perhaps a contractor you employ has seen something that they didn’t agree with when they visited a company. They then told their partner when they got home and in turn their partner told their friends and before you know it the company finds out about the breach in confidentiality and they have decided to sue you. It is a fairly extreme case but it can, and does, happen. It doesn’t always have to be you that makes the mistake; anybody that you hire could cause a problem and you would end up paying for it.
Overall computer contractor professional indemnity UK insurance is essential. It really can help to protect you financially in case anything was to go wrong. You cannot guarantee that every single job you do will go like clockwork. For that reason it is so much better to protect yourself and be assured that if a claim were to be made against you, it would not cripple you financially.
Protecting you and your company against unforeseen events makes good business sense and will help keep it running smoothly, even if you are faced with challenging situations along the way. It must be said that considering a computer contractor professional indemnity UK policy is something that should be considered for any business owner who wishes to protect his or her livelihood against claims made upon it for things such as breach of duty; loss of documentation; and negligence, plus many other third party issues that could arise.
Overall, professional indemnity insurance can help your business to overcome unexpected hurdles and minimise any financial loss – as well as the undoubted stress you will personally face – in the event of a claim against it.
You may think that having this comprehensive protection will cost a lot. However, protecting your livelihood against financial catastrophe caused by a claim against it does not need to be expensive and can help keep your business financially stable should this happen. A computer contractor professional indemnity UK policy can help to ease any financial worries in such a situation by providing financial recompense.
So, where do you go if you want to buy a computer contractor professional indemnity UK policy?
Using an independent provider of this innovative cover will help to give you access to the right deal. Providers of professional indemnity insurance often can offer tailor made policy options so that you to get just the right sort of protection required.
What to look out for when choosing your cover
When purchasing your indemnity insurance, bear in mind that as with most insurance cover, generally you will have to pay an excess on your policy. How much this will be will be determined by the insurance and will typically be based on what professional indemnity insurance product you have as well, of course, as the sum insured.
Once you have cover, do bear in mind that should you face a claim against your firm, there can often be a delay between the date of the incident and the actual claim. So, if you are looking at switching providers or maybe retiring, make certain that you are adequately protected with what is called a “run off” period. In the case of the former circumstance, see if the new insurer accepts claims for a prior incident.
Being under insured is almost as bad as not having insurance, so do be realistic as to the amount of insurance needed.
Always make certain that you check the policy features and benefits to confirm the pertinent points of the insurance so you know that you are getting the cover needed. The terms and conditions of the insurance can differ depending on the providers.
Finally, a computer contractor professional indemnity UK policy provides a financial safety net should your business be the subject of a claim against it, so never under value just how important it could be to your business.