What computer contractor PII can protect against
Finding out what you need when setting up a new business can be a bit of a learning process. Companies who offer their services on a freelance basis often look for insurance for their equipment and perhaps the likes of public liability cover. But people taking on contract work may also want to think about legal implications related to mistakes. For example, computer contractors might run the risk of legal action if they ever made an error which lead to a company being offline and losing money. Computer contractor PII is a straightforward insurance policy which can guard against some other financial headaches associated with such incidents.
PII simply stands for professional indemnity insurance. This is a form cover which protects professionals in the event they are accused of making a costly error in their general business. It applies to mistakes, omissions, or allegations of acts of negligence. Any of these things might lead to a legal claim, i.e. being sued. Defending such a claim can often cost money as legal help may well need to be hired. A PII policy would pay for your legal expenses up to an agreed limit and even any compensation which may be awarded against you.
Computer contractor PII also typically covers a professional or business against claims they have lost or damaged important data belonging to a client or that they have breached someone’s confidence or copyright and also even guards against defamation actions. This is potentially useful for anyone who perhaps designs websites or deals with sensitive data as part of their contractual work on IT systems.
If you have to make a claim you simply apply in the same way as you would on something like a car insurance policy, contacting your insurer and explaining the situation. They then start to pay legal bills and will do so right the way through a case provided you stay within your policy limit. This limit is agreed as you take out your insurance and needs to be decided by you in relation perhaps to the size of your business and the nature of your clients. You can also often agree an excess with an insurance company, in much the same way again as a car insurance policy, and this can be used to control the cost of your premium.
Computer contractor PII may also include things like public liability insurance as an extra or even included in the price. Other things to consider include overrun or run off cover, which can protect you after you wind down a business or retire, guarding against legal actions which are arrive. You can also get what is known as retroactive cover, providing protection for claims which arrive in the future but which date back to before you even bought your indemnity policy.
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