IT contractors insurance – what is it?

March 22, 2010 · Filed Under IT contractors insurance · Comments Off 

If you are an IT contractor, IT trainer or IT consultant, then it may make sense to protect your reputation and your business with professional indemnity insurance. You can get trade-specific professional indemnity insurance – IT contractors insurance – which will help protect you in the event that problems arise due to work carried out by you / or due to advice you have given to a client.

IT contractors insurance can also help you in the event of something else going wrong between you and client. However, do note that policy terms and conditions can vary among professional indemnity insurance providers, so you need to check your cover to make sure you have the protection your business needs. What is standard within one policy may not be with another.

Following is a snapshot of just some of the cover a typical insurance for IT contractors policy may provide:

  • loss documents or data;
  • accidental breach of confidentiality;
  • libel and slander;
  • the supply of deliverables;
  • dishonesty;
  • unintentional breach of contract.

Getting covered

Professional liability cover can be crucial for your business. Certainly, should the worst happen and a claim is made against your company for one of the sort of situations listed above, then you may find yourself having to dig deep in to your pockets in order to pay for any loss or damages awarded to the claimant – plus your legal defence costs too.

This could run in to thousands and thousands of pounds – money you’d have to find yourself. Substantial costs may wipe out your business, depending on the sum awarded and how profitable your enterprise is.

So, investing in protecting yourself and your business against the ramification of such claims can make sense. In fact, you may find that some clients may only work with you if you have IT contractors professional indemnity insurance in force, as this protects them too.

Surprisingly, for the cover that a professional indemnity insurance policy could offer you, premiums may often be realistic.

Getting covered with an IT contractors insurance policy can give your business financial protection. And by using the services of a specialist provider, you will often be able to access a suitable deal at a suitable price.

IT consultants insurance – professional indemnity insurance for your business

March 8, 2010 · Filed Under IT contractors insurance · Comments Off 

IT consultants insurance is a trade-specific professional indemnity insurance policy. Professional indemnity insurance (PI insurance) is something that many businesses will have, whether through choice or because it is mandatory to their profession (such as if you are an accountant). This insurance can give you peace of mind that should something go wrong and you are sued by a client, your business finances (and hopefully your reputation) will remain intact.

IT consultants insurance can generally provide cover against unsavoury situations that may occur such as accidental breach of confidentiality; defamation; libel; slander; dishonesty of an employee; loss of data or documents; unintentional infringement of intellectual property rights; wrong advice etc.

Public liability insurance may also form part of a PI insurance package or can often be purchased as an add-on to enhance your company’s protection.

Why do I need it?

Something as everyday as you providing consulting work on a computer system that then all goes horribly wrong may see your client sue you for damages. Not only will a court case be stressful, but your reputation and your business finances could be seriously compromised if your client is awarded damages.

This is where IT consultants insurance may be able to help, typically by paying towards the costs of defending you against any allegations made against your company, as well as any damages that are awarded.

In a nutshell, the policy can help defend a claim against you as well as cover you for any costs 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 or your business.

As mentioned in the opening paragraph, in some professions, professional indemnity insurance is mandatory. You may also find that some clients will only work with you if you can show that you have a PI insurance policy in place. This gives them protection that, should they need to sue you, they know they stand a chance of getting any costs awarded, if their claim is successful!

It can be a dog-eat-dog world out there and society seems to be more litigious than ever. Protecting yourself with IT consultants insurance may be something worth considering.

IT consultants insurance – business protection

February 22, 2010 · Filed Under IT contractors insurance · Comments Off 

IT consultants insurance can typically provide your business with invaluable financial protection against claims from third parties who believe that you have done something that it is detrimental to them or their business.

A typical IT consultants insurance policy provides cover against claims for such things as third party injury; negligence; loss of data or documents etc. Sometimes known as professional indemnity insurance (PII) (with public liability cover often included or added on), this business insurance helps provides protection in respect of any legal liability claim against your livelihood by assisting financially with court cases, legal defence and awards for damages – subject to your claim being satisfactorily accepted of course.

When choosing IT consultants insurance, there are a number of considerations that you need to take in to account:

  • do note that as with most insurance policies, in the event of a claim, generally you will be liable to pay an excess on your policy. Ensure you know what this is;
  • ensure that your policy covers all time frames. Often, there may be a delay between an event happening and the subsequent claim against you / your business. So, if you are in the middle of changing insurers or getting a new IT consultants insurance policy, ask your new provider if they will accept new claims for prior incidents. This is often known as retroactive cover;
  • there are many PII policies offering different levels of cover, so ensure that you have an ample amount of protection. Do be realistic as to the amount of IT consultants insurance needed. Being under insured is almost as bad as not having insurance at all;
  • policy features and benefits of an insurance policy will invariably differ depending on the insurance for IT consultant providers. Ensure that you check them to confirm the pertinent points of the IT consultants cover.

Of course, it’s not just about getting the most suitable insurance for IT consultants cover – there may be ways that you can help minimise the risk of someone making a claim against you. Common sense things, such as documenting expectations beforehand, (eg responsibilities, deadlines etc) may mean you can manage the workload and the relationship before any problems arise.

IT consultants insurance should be considered by anyone who runs a business as the benefits offered in the face of a claim may prove invaluable.

IT contractors insurance explained

February 12, 2010 · Filed Under IT contractors insurance · Comments Off 

No matter how good you are at your job and how well you run your company, sometimes things go wrong. Then, you may be faced with a claim against you – with the knock on effect that your business may face financial ruin. That is why IT contractors insurance could be worth considering.

If you run a business, whether you are the sole employee-owner or you have staff, it can still make sense to ensure that you protect yourself against the unexpected. These sorts of unexpected things could include claims against you or an employee for perceived negligence; the loss of sensitive documents or data; plus other events that can crop up as result of you going about your business.

Certainly, in today’s litigious society, having some form of professional indemnity insurance (PI insurance or PII) in place could be a sensible idea.

Things can go wrong
You may think “it’ll never happen to me, my customers are always happy with what I do for them”. However, claims can be made against your business – such as where your customer suffers some form of loss because of actions – or lack of actions – carried out by you or an employee.

And if a claim is made against you, unless you have deep pockets to cover the cost of legal defence as well as potentially any compensation you may be ordered to pay, then your business will have to pay up.

You could then potentially face paying out a five or even six figure sum, as well as having your reputation tarnished.

The good news is that IT contractors insurance may typically help pay for the cost of defending you against any claims made against your business, as well as damages.

And insurance for IT contractors can not only help protect you financially, but can also help keep the reputation of your business intact.

What sort of cover can it provide?
The policy features and benefits of IT contractors cover will vary depending on the provider, but a typical policy may provide you with protection against claims for such things as:

  • accidental breach of confidentiality;
  • loss of data or documents;
  • product liability;
  • libel & slander;
  • defamation;
  • dishonestly;
  • unintentional infringement of intellectual property rights

Getting a suitable deal
If you are considering IT contractors insurance, then you need to make sure that you purchase it from the right place. Specialist providers of professional indemnity (professional liability) insurance will typically have unlimited expertise in the sector. This often means that they can give you access to suitable cover, helping you protect your business properly.

Protecting yourself and your livelihood does not have to be a time consuming exercise. By using a specialist provider of IT contractors insurance, they can help you find the most suitable PII solution for your business.

Why buy IT consultants insurance?

January 11, 2010 · Filed Under IT contractors insurance · Comments Off 

Although you may enjoy your job and chosen career immensely, you may potentially be at risk of serious financial loss if you do not have IT consultants insurance. Why?

By virtue of your job, you provide professional services in return for a fee. If one of your clients suffers material loss or damage as a result of your error or poor advice, they may well turn to you for real hard-cash financial compensation. The sums awarded by courts may also be very substantial indeed.

Perhaps this sounds a little unlikely? Consider some following scenarios:

  • you have recommended the procurement of a major system or hardware infrastructure that subsequently proves not to be fit for purpose;
  • you have accidentally sent a confidential file of your client’s information to the wrong addressee on your email system;
  • you have passed on for comment to others some of your client’s information only to subsequently discover that is regarded as commercially sensitive.

The list could easily be significantly extended.

The key point is that as a professional business person you could be called to account legally for a wide variety of things including slander and libel, professional negligence and incompetence, breach of client confidentiality / non-disclosure agreements or defamation of character.

In all these situations, the ‘accidental’ nature of the infringement or what you may have actually intended to do or may be, at best, of only secondary interest to a court. What will count is the effect on your client or the plaintiff and that is where damage awards may leave you in serious financial difficulties unless you have IT consultants insurance. This insurance may help in situations like these.

This form of cover is part of our professional indemnity insurance (PII) product. We also offer public liability insurance to protect you against the financial effects of claims from members of the public who have suffered injury or loss as a result of your activities.

You can find out more about IT consultants insurance entirely free of obligation by reading further information on our web site. It may be a useful investment of your time and a first step towards reducing your financial exposure profile!

IT contractors insurance – how it may help your business

December 7, 2009 · Filed Under IT contractors insurance · Comments Off 

As a professional person, you are at risk in terms of the services you supply. IT contractors insurance could be one way of protecting you from those risks.

Professional liability

Although we may not always like it, the reality is that we live in a litigious world.

Your clients today may be very keen to demand that you pay for your mistakes that resulted in them suffering financial loss – ‘forgive and forget’ is now frequently an attitude of the past.

Equally, as modern technology has increased our communication capabilities, it has also arguably increased the risk of your statements and comments getting into the public domain. This may easily lead to demands that you accept accountability for erroneous or libellous statements, the accidental release of confidential information or defamation.

As an IT contractor, there is also a fair chance that you’ll have heavy exposure to your client’s data – lose it or accidentally release it to an unauthorised person and you may find yourself going through the legal compensation process very quickly indeed.

IT contractors insurance

Professional indemnity insurance (PII) may be a way of reducing your financial risks should you be on the receiving end of a large court award for one of these (or other) circumstances.

A summary of some of the circumstances covered typically may or may not include:

• accidental breach of confidentiality;
• loss of confidential information;
• product liability;
• libel and slander;
• defamation;
• dishonesty;
• unintentional infringement of intellectual property rights.

It may be worth remembering that the point is not whether you believed you slandered someone or behaved dishonesty – but only what a court believes and awards.

The awards can also be high – well into 6 or even 7 figures depending upon the circumstances and severity of the problem.

Our services

We offer IT contractors insurance that typically covers a wide range of situations and circumstances. It can also provide public liability insurance in case you are unfortunate enough to be sued for injury or damages sustained by a member of the public while you were providing your services. Finding out more from reading further on our site may be a good idea.

Why you may need IT contractors insurance

November 8, 2009 · Filed Under IT contractors insurance · Comments Off 

Many professionals and companies may never have even considered what professional indemnity insurance means, while others may have heard of it but never bothered looking into the subject. But it is typically available through conventional IT contractors insurance packages, and in some circumstances may save a business or individual hundreds of thousands of pounds or more.

Professional indemnity insurance may provide cover as part of a general IT contractors insurance deal, and in some circumstances might be referred to as business insurance, or, as part of a business insurance package.

Normally it may protect against claims for loss or damage by a third party or a client and relates to mistakes, real or perceived, made by you in the conduct of your business.

The deal may sometimes apply to one individual person, ie one freelance IT professional, or a company as a whole.

Often a deal may protect against legal claims that you have made a mistake, committed an act of negligence, or a general error in your work. For example, you may incorrectly install a software system which needs to be redone, costing a client money. In such circumstances they may decide to take legal action to recover any money they have lost.

In the past professional indemnity insurance used to be mainly associated with the likes of architects, doctors, and accountants. This was because some of them need to have it in place in order to qualify for membership of trade associations, or to abide by the law.

But it has become popular with other trades, specifically because of a heightened legal awareness which means clients may be more likely to sue if they feel they have been wronged.

IT contractors insurance comes with a policy payout limit, beyond which it may not pay for any more legal fees or compensation costs. Often selecting this limit is important, as if it is too low you may end up under-insured in the middle of a court case and have to pick up the rest of the bill yourself. On the other hand, if you end up over insured, you may be paying for a level of IT insurance protection you don’t really need.

Choosing an IT contractors insurance plan

October 2, 2009 · Filed Under IT contractors insurance · Comments Off 

Working out the administrative side of things can be tricky for many businesses, and IT contractors may typically rather get down to their contractual work than spend hours sorting out business insurance plans. However, IT contractors insurance may allow a professional to work with added security.

This kind of cover may feature professional indemnity insurance, often known as PII. It may be useful for a number of different consultants and not just IT professionals. It may pay your legal costs including compensation in the event you are taken to court – referred to as being sued, by an unhappy client.

Typically this can refer to mistakes made in the conduct of your general business. For example if a drive is wiped by accident, costing a client a considerable amount of cash – in which circumstance they may decide to take court action in an effort to repair their ‘financial injury’.

Some businesses need PII in order to achieve membership of industry bodies or in order to fulfil legal requirements. This may not be the case for IT contractors, but a policy may be more than sensible.

Unless the business has considerable cash reserves put away, they may find burden of a court case and its associated solicitors and compensation costs too much to bear.

IT contractors insurance with indemnity cover may pay your legal costs up to a set ceiling which is laid down or the policy agreement. This amount is often decided with your input so the excess means you need to make a decision as to how much cover you really need. A firm may do this by judging their client base and the size of their regular contracts.

Payouts are not based on whether or not the claim made against the company is valid – you may get a pay out regardless of whether or not the accusation levelled against you is valid or not. Generally insurance like this may cover accusations you have defamed somebody, made a costly error in your work, acted negligently, or breached confidence or copyright accidentally.

IT contractors insurance often also protects against claims that you or your employees have acted dishonestly and perhaps stolen from a client, for example.

Using IT contractors insurance as a guard against legal action

September 1, 2009 · Filed Under IT contractors insurance · Comment 

Some businesses tend to operate from one month to the next without keeping much aside, while other perhaps large organisations have considerable cash reserves. But whatever a company’s balance sheet looks like, they may struggle to pay for an expensive legal case if they face a formal action. This is why professional indemnity insurance has become popular with outside consultants including information technology pros. IT contractors insurance is geared to provide specialist cover for those who work in the sector.

This kind of cover is worth considering because a mistake while completing a job for a client can lead to a business losing a considerable amount of money. Erroneous advice or a slip during a high profile installation can both lead to a formal complaint or being sued in certain circumstances.

IT contractors insurance normally includes an element of professional indemnity cover, which will essentially pay for the cost of someone’s legal defence if they ever do face a case. Normally it protects against solicitor’s fees in the event the policyholder is accused of an unintentional mistake in the general conduct of their business.

This normally includes allegations they have made a mistake, error, or simply omitted something which they should have included in advice or an installation. It also covers slightly more complicated legal matters including allegations that the policyholder has accidentally breached someone’s copyright or confidence, or defamed somebody through libel.

It will even cover allegations that you or an employee of yours has acted dishonestly – in the event there is an accusation of fraud or stolen data, for example.

IT contractors insurance typically comes with flexible policy limits, as no insurer will pay out indefinitely towards legal bills. So a firm which has less high profile clients may want a policy limit much smaller than a firm which deals with several multinationals, and the policies are often priced accordingly. The good thing about this type of cover is it will not matter whether or not the claim against you is valid or not – protection will be included in any case and will even cover the cost of compensation which is awarded against you.

Using IT contractors insurance to protect against court cases

August 2, 2009 · Filed Under IT contractors insurance · Comment 

From internet marketing to installing wireless networks, there are now all sorts of reasons why firms might require outside help with information technology – and that means getting in consultants either for the short or long term. Even smaller companies or individual freelances can make a big difference to a company, but they themselves will need to make sure they have planned ahead to provide a good service – one of the first things many consider is IT contractors insurance.

Professional cover is taken up by businesses to protect against all sorts of eventualities. Depending on where and how they operate some firms will need public liability insurance, for example, while others won’t. Others will need a form of professional indemnity insurance, which can protect against legal hurdles which can come up when completing consultancy work.

IT contractors insurance can include both public liability and professional indemnity in one policy and can come from a wide range of insurance firms. All deals which include professional indemnity often run along the same basic principle – paying out in the event the individual firm or policyholder faces a legal challenge.

This is often referred to as being sued and can happen for all sorts of reasons. Normally a deal with professional indemnity protects the policyholder in the event they face action due to a costly mistake, typically because it lead to a client losing money.

Typically this is defined as an accusation of an error, omission or act of negligence committed in their day to day business. It also normally applies to claims they have breached copyright, confidence, or even if they have defamed someone through libel. Also normally covered are claims that a client’s data has been lost or destroyed or even that the employee of a contractor has acted dishonestly.

Insurance like this works by paying out to cover the legal and compensation costs arising from a case – which in some cases can run to hundreds of thousands of pounds or more. IT contractors insurance will therefore involve a premium as with other kinds of cover but this is calculated according to the maximum payout limit on the policy and the size of the applicants business and clients.

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