IT Contractor Professional Indemnity Insurance: What You Need to Know
IT contractor professional indemnity insurance will protect IT experts in the event that negligence or mistakes cause a client to take legal action.
Anyone who is working within the field of Internet technology and computers should seriously consider procuring IT contractor professional indemnity insurance. Much like similar indemnity insurance packages, there are several reasons why an individual might require this extra level of protection. Some of the potential variables addressed by these packages will include:
- Negligence (such as making an error when developing a program).
- An accidental breach of confidentiality.
- An event that causes information or personal data to be lost or otherwise corrupted.
- A client loses money due to the actions of an IT contractor.
As some of these situations can result in lengthy legal proceedings and substantial financial burdens, professional indemnity insurance is always a wise choice.
Is it mandatory for an IT contractor to possess indemnity insurance?
This is an important question to address, as there are some instances when professional indemnity (PI) coverage might not be warranted. However, it is still critical to point out that the majority of IT professionals will need to possess some form of coverage; particularly if they regularly work on large projects or are employed on a freelance basis. It is simply a question of risk. Even smaller IT firms will likely need to have a basic level of professional indemnity insurance. Legal and financial costs could otherwise prove to be crippling.
A growing number of clients now require that the individual or firm in question possesses IT contractor professional indemnity insurance so that all parties are covered in the event of an accident or mistake. Thankfully, these packages are quite flexible and it is normally possible to encounter one which suits entirely unique needs.