Finding the right computer contractors professional indemnity UK deal
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.