The importance of Professional Indemnity Insurance (PI Insurance) has been hammered home this past month, with IT contractors being in the firing line from major corporations.
As many will already know, Natwest incurred horrendous loss due to technical error earlier this month, resulting in a total breakdown of the company, grinding branches to a halt nationwide. This ‘error’ was of course due to IT failures resulting in mass loss of information and disruption to the bank’s customer and information backlog. Now as a major corporation housing huge computer systems and a vast amount of data, IT contractors are used frequently to keep on top of these technical servers and systems. Now it is terrible to think of the claims of negligence that Natwest may have filed against these contractors, and without full PI Insurance, the financial damage that could well have been huge.
Here at Qdos, we advise contractors and freelancers to avoid the worst, the huge Natwest ordeal highlighting the importance of the PI Insurance policy. For freelancers, Qdos Professional Indemnity Insurance will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence. For total peace of mind we highly recommend this cover and premiums start from as little as £147 (including tax). This is a quality example of the cover that is essential to any freelancer, contractor or self-employed professional.
In addition, having PI Insurance will bolster the perception that you are in business on your own account, therefore aiding your IR35 position. Plus it will give your clients the reassurance that there are sufficient resources to handle any recourse in the unlikely event of an alleged breach of duty, adding value to any tender.
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