An IT contractor’s insurance quote

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

If you’re rushed off your feet then stopping to get an IT contractor’s insurance quote may not seem like a top priority.

In fact, insurance often seems like something that can either be put off altogether or regarded as an unnecessary luxury.

Yet it is? Getting an IT contractor’s insurance quote may only take a few minutes but it could save your business from destruction and your personal finances from ending up in someone else’s pocket.

How?

Whether you like it or not, your clients typically won’t see you as a friend, confidante or a part of their establishment. If one of their own staff underperforms or runs into trouble, then their own contracts of employment plus the law, will dictate how they react.

By contrast, as an IT contractor, you do not have the protection of a formal contract of employment and the law of the land may offer you comparatively little protection against the consequences of your own mistakes, behaviours or sometimes sheer bad luck.

If an employee makes a mistake then he or she may expect to get a reprimand, further training or in very severe cases, perhaps a written warning. Just about the worst they can anticipate is sacking.

For you, the position is typically significantly different. You may be held legally and financially accountable for a whole range of problems that your client believes originates in your professional engagement. A ‘forgive and forget’ attitude may be unlikely in today’s harsh business world.

If you’re sued and subsequently lose a case for things such as:

• accidental breach of confidentiality;
• loss of your clients’ data or documents;
• defamation;
• product liability;

then the results for you, financially speaking, may be catastrophic.

Getting an IT contractor’s insurance quote that includes PII (Professional Indemnity Insurance) may be the first step on the road towards having insurance that may typically protect you from the worst of the financial risks should any of the above come to pass.

Taking the time to look closely at an IT contractor’s insurance quote may open up your eyes to both your risks and, perhaps more importantly, what you can do to protect yourself against them.