Information technology is a fast moving and ever changing industry. As an IT contractor it is likely that the work your carry out will fall in to one of the following categories:
- Packaged Hardware / Software Provision
- Development of Bespoke Solutions
- Consultancy / Project Management
- Outsourcing
- IT Recruitment
- Internet Services
The following is a list of trades that would be suitable for cover under a technology and media Professional Indemnity policy wording. The list is not exhaustive but this will cover most areas of expertise in the field :
When professional indemnity underwriters look at an IT risk there are a number of factors that they will take in to consideration before providing a quotation:
Size of the firm – This is mainly established in two ways, the number of directors and staff and the gross annual income of the firm.
Qualifications and experience – Underwriters will look for a mix of qualifications and experience and a CV of the directors or principals will often help underwriters when they assess the risk.
Potential for loss – Underwriters will want to try and understand what would be the immediate financial loss, and other consequences, if data is incorrect, a system fails or becomes unavailable for any period of time. Experience has shown that the majority of the litigation against IT Companies occurs because of;
- Failure of the software / system to do the job which it was intended for.
- Failure to deliver the system on time.
- Failure to deliver the system to budget
As a result of this a client may either :
- Withhold some of the fees due or claims the return of the purchase price.
- Claim for a direct financial loss arising from negligence of the IT Company and perhaps even for consequential losses also.
