Why some firms will need computer contractor public liability cover

June 25, 2009 · Filed Under Computer contractor public liability · Comment 

Public liability insurance is an often underestimated and misunderstood product which applies to a greater number of businesses than many people believe. It can be helpful to any company which regularly deals with members of the public and or operates in the public domain. Furthermore, it can be crucial for companies which operate business premises regularly visited by members of the public. Consultants including IT specialists often fall into this category, so computer contractor public liability cover can be crucial to some firms in the sector.

Public liability cover exists because British law imposes a duty of care upon some people, typically including property owners, employers, and other traders. The duty of care part refers to the responsibility of the business or property owner for making sure that anyone who comes into contact with their work is safe. Those who are found to have breached that duty or fallen short could be open to being sued as part of a legal case.

Computer contractor public liability cover provides legal protection against such claims, effectively paying the costs associated with defending an action. It can even pay any damages which might be awarded against you. Depending on the circumstances and the incident, these can be quite considerable and in the worst cases would see a firm put into serious financial difficulty if they did not have protection.

The price of this kind of cover depends on how big your computer contractor business is, where you regularly conduct assignments, what you normally do, and how many people you employ. The bigger your business and the more often it deals with the public and in public, the higher the price of the cover might be.

While a business can minimise its chances of facing legal action by following good practice and health and safety rules, it can still be at risk of facing a legal challenge, either valid or invalid.

Computer contractor public liability cover can protect against the legal bills which would be run up defending a case, and even if you don’t need it, it can be a valuable safety net. Furthermore, some clients may not deal with a firm if they do not have public liability insurance in place. Local authorities are one common example of this.