IT contractors need Professional Indemnity (PI) insurance. This type of cover is helpful for freelance workers, such as web & software developers, analysts, programming specialists, and telecommunications consultants. If these workers are covered, there’s no need to worry when they commit accidental mistakes while doing their job. The nature of their job is difficult; a single mistake, like a coding error, may lead to huge losses both for them and their clients.
Indemnity is a complex topic, but IT professionals or contractors should have a good understanding of it. Let this article guide help you learn why you should learn about IT professional indemnity insurance.
What is Professional Indemnity Insurance?
In a nutshell, professional indemnity insurance means the policy owner is protected from financial losses due to claims from another entity. There are different insurance policies offered for businesses in different industries, including the IT sector. In some cases, professionals may be required to hold such policy to do business in their area.
What’s in it for you?
Being a policy owner is like having a big person backing you up when you’re in trouble. For instance, if a claim is filed against you, your insurance provider will come to the rescue. They will conduct an investigation on your behalf, and also manage all the legal expenses as the investigation goes on. If you end up guilty after the litigation, the insurance company will pay for the claim. This, of course, depends on your policy’s coverage limit.
What does coverage include?
Contractor indemnity insurance coverage for those in the IT field includes any loss of data placed in your care. The coverage will also protect you in instances where you brought down your client’s system while doing some coding work. As this could mean financial loss on their part, they can sue you. Your insurer will come to your defence and handle the damages.
Professional or contractor indemnity insurance also covers breach of contract and unintentional breach of confidentiality. Find providers of PI insurance for freelance contractors. Be covered and enjoy peace of mind as you do your job.