IT Industry - Business Insurance for contractors and consultants in the Technology Sector

Technology, IT Consultations and Suppliers

Anyone working in the technology sector, either as an advisor, consultant or a supplier is likely to be aware that having the right insurances in place is a great way to have peace of mind about your business. Not only does this peace of mind help you to feel confidence in what you are doing, it also extends to your client who can feel sure that they are employing someone who they can trust – even if things go wrong.

Because unfortunately, things do go wrong even when both parties have the best intentions. As an IT consultant, you job is to provide advice to your clients on their technology, IT and communications requirements and as such you have a duty of care to them to provide the best solution for their needs. Part of this duty of care also extends to their personal information and intellectual property. If there are any breaches relating to this information or anything which will cost your client money, you may find yourself being sued for negligence.

This is where professional indemnity insurance comes in. This is a type of insurance which will cover you for the legal costs associated with your client's claim and will also pay the damages or compensation up to the limit of your policy. For more information on this just give us a call on 03333 211403.

Your client may decide to bring a claim against you for a number of reasons, however the most common types of mistakes or omissions tend to relate to infringements of intellectual property, loss of documentation, problems with software and general negligence related to your work.

This might mean that you have promised to complete your work by a certain date, which you are unable to keep to. This could cost your client money while they are unable to use their IT systems.

Complaints regarding your work could be taken to the Communications Ombudsman, if you are unable to work it out with your client yourself. Your client may choose to take this path rather than hire a legal team. In this case any dispute can be resolved fairly according to the principles of the Ombudsman who will also consult with Ofcom.

If you have PI insurance, you will be in a much better position to negotiate this with the best possible representation.