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.
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;
• 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.
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.
While businesses and individuals who operate on a consultancy or freelance basis are often organised and well trained, mistakes do happen and their status means they are open to potential legal action if they ever do commit a costly error. As hired outside professionals, loss adjusters fall into this category in particular as they have to make calculated decisions which can involve a considerable amount of money. If a client ever felt a professional had acted improperly and made the wrong recommendation or decision, they may seek to recover any money they have lost as a result by taking legal action. This is why an element of loss adjuster professional insurance is something to consider for anyone operating as a consultant.
Professional cover like this can include all sorts of safety nets for some other common legal risks which hired experts can encounter. For example, a policy may provide public liability insurance, covering you against certain personal injury claims which result from something you have done off site or from an incident which happens in your business premises, i.e. a personal injury claim.
Also, professional cover like this typically pays your legal bills in the event that you are sued because of an error, either real or perceived. This is known as indemnity protection and pays for the cost of legal help in the event you have to defend a claim. Typically this is defined as being sued by a client because they feel you have made a mistake, error, or general omission or even an act of negligence. It can also cover you against accusations that a company employee has acted dishonestly, and, for example, defrauded a client.
It can be extremely beneficial because it normally pays for your legal bills which are run up in defending a case. If you ever face a formal claim you are likely to need legal assistance which can be expensive. Furthermore, if your defence is unsuccessful the court may award compensation against you, which will also have to be paid for.
Loss adjuster professional insurance with an indemnity element can help pay for the cost of your legal defence and any compensation which might be awarded against you up to a set policy limit, which is defined by the policy holder and directly affects the premium. So a limit which is in the millions of pounds and applies to a larger firm will normally involve a higher premium than a deal which has hundreds of thousands of pounds worth of protection for an individual.
Loss adjuster professional insurance is also available at a level which can be suited to your business as an excess can be set, just like any other form of cover, and the different top levels of cover available also come at varying costs which can be suited to different sizes of business.
As a professional familiar with risk, a loss adjuster will typically recognise the need to safeguard their business. As a professional offering their opinions and advice to clients, a loss adjuster is expected to deliver a highly professional service. But should they ever be accused of making a mistake, the client could lose a considerable amount of money and choose to take legal action to recover anything they feel they have lost because of something the loss adjuster has done. This is why a loss adjuster professional insurance policy is something to consider for anyone operating either alone as a freelance or as a larger business.
Professional insurance which includes indemnity cover will pay out should you need to hire legal assistance following an allegation you have made an error. It normally guards against allegations you have committed an act of negligence, made a straightforward omission or simply made a mistake which has caused to someone to take legal action.
To defend a case properly a professional may need to take legal advice which can be expensive. Smaller businesses may not have the resources needed to hire proper help, and so an insurance policy may be the best answer.
Loss adjuster professional insurance with an indemnity cover element will even pay out costs for compensation for a client if it is awarded to them. This could run into hundreds of thousands of pounds in some circumstances, or even more if the client is a particularly big firm. Therefore an insurance policy could eventually be worth far more than its premium has cost your business.
Cover will often also protect more than mere mistakes, guarding against the likes of allegations of breach of confidence or copyright. It will even protect you if you face a legal case following a claim that one of your employees has acted dishonestly and attempted to defraud or steal from a client.
Loss adjuster professional insurance can also be set at different limits, as an insurance company will not pay out indefinitely. But you need to be careful as being under-insured can see you picking up the end of a large legal bill, but having protection to an unnecessary limit may mean a premium is more expensive than you need it to be.
A professional loss adjuster will be familiar with their responsibilities and be used to making difficult judgements based on limited information. Examining an insurance claim can often be similar to detective work and this means many companies rely on outside help to make a decision before issuing a large payout to a customer. However, if the loss adjuster does happen to make a genuine but serious mistake, the insurance company could end up paying out a lot of money on a wrongful claim. This means they have lost money unfairly, and creates the risk of a legal case. However, a loss adjuster professional insurance policy can help remove some of the associated stress of a court action.
In simple terms, loss adjuster professional insurance will normally involve some form of professional indemnity cover. This means the professional concerned can normally expect their insurer to pay any legal bills they run up while defending themselves against a court action brought by a client. Solicitor’s fees can sometimes run into thousands or even hundreds of thousands depending on the nature of the case involved – this means some people may end up defending themselves or simply wind up in massive debt. Professional indemnity ensures the loss adjuster is covered should they make an error or omission during their day to day work.
As with other types of insurance policy, an excess will apply, set at the start of the policy, and there will also be limits as to how much an insurer will pay out. It is up to the individual concerned to decide what level of cover they are after. They may feel their own level of risk lies in just a few thousand pounds of legal bills, or perhaps a bigger policy is needed.
Loss adjuster professional insurance which includes professional indemnity will also normally involve protection for other legal risks like allegations of defamation, breach of confidentiality, or copyright infringement. Public liability insurance will either be included or be an optional extra too. With levels of cover available to suit almost any business or budget, protection needn’t be expensive and in some cases can save a company hundreds of thousands of pounds should it ever face a serious legal case.