As we all know that IT contractors offer services and counseling to the professionals and a lot of other clients. To do so, they must ensure that they have a proper insurance cover to protect them from any unwanted situations like a contractual liability, any error in financial responsibility etc. A lot of clients prefer that the IT contractors should have the IT contractors insurance before hiring them. These days this cover has become a necessity for the IT contractors to run their business smoothly and have regular clientele.
While on job, you as an IT contractor can misplace some important papers, any of your advice might not work and as a result your client ends up with a huge loss and many such untoward incidents can occur. So if you have this indemnity insurance, it becomes the responsibility of your insurance company to take care of the legal costs and the compensation money that needs to be paid to the client. The compensations in these kinds of cases can be really high and leave your company financially crippled and also the legal costs are huge too. So if you don’t have IT contractors insurance, you will have to pay all this from your own pocket and as a result you will end up losing your business.
Lawyers these days are very skilled to file a case against you even if it is not your mistake but the sub contractor’s. So, you need to make sure that if you are hiring a sub contractor, he must also own this cover as it will lessen your liability and also your insurance rate will be lower.
