Professional Indemnity

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Computers are a very important part of our daily lives. They are used more each day as new uses are found for them. Given their great importance, there’s also a need to keep these machines operating properly. After all, if a computer system goes down, there’s likely to be a wide impact for both users and operators of the system. Professionals known as IT contractors have become important to assure that these computer systems continue to operate. IT contractors are professionals who make recommendations to clients based on their personal expertise. They may offer advice on creating a computer system for a business. The advice may focus on the viability of a particular piece of software in the current computer set-up. IT contractors may also simply provide education for those businesses needing to learn the system.

IT contractors provide an important service by dispensing their influential advice but, as with many things, sometimes things do not go as planned. Maybe the advice given to the client was the wrong advice and produced serious problems because of it; sometimes computer systems can crash and leave a business floundering until the problem is rectified. This could cause a business to lose quite a bit of income. In these situations, the business may choose to file a negligence claim against the IT contractor. If the court finds the IT contractor responsible, they could be ordered to pay out a large monetary award. Often times this alone can cause the IT contractor’s business serious harm.

For an IT contractor, having professional indemnity insurance can be a great benefit. When a claim is filed, an IT contractor will need to secure legal representation. This can be quite expensive and financially draining. However, if a contractor has professional indemnity insurance coverage, then the insurance will reimburse the legal expenses up to the limit of the policy.