- Tuesday, 24 July 2012 11:55
- Written by Troy Stevens
In the harsh, competitive business world, every company strives to be one step ahead of the rest. This can range from undercutting opponents to offering that little bit extra, and recently firms across the nation are attempting to outdo each other in the ever changing area of IT.
This is great news for contractors, because the more investment made into IT results in more contracts and higher earnings for IT contractors. A contractor’s professional position relies on working within a contract basis, and with greater investments within technology; far more contracts will become available.
This huge plus point for a contractor does however highlight the necessity and importance of contractor insurance. Now insurance for contractors ranges from protecting their professional indemnity to covering them in any HMRC ‘IR35’ cases, and with an influx in IT contracts comes an increase in proper protection.
The most popular form of contractor insurance is Professional Indemnity Insurance (PI Insurance) and this is a policy bought by thousands nationwide. The policy is an annual cover that covers a contractor if any errors or mistakes are made whilst on a contract that results in financial loss for another party. This scenario could be potentially devastating as cases of negligence being made against a contractor could result in millions of pounds worth of costs. This is where PI Insurance comes into play, covering all costs and efforts should a claim of negligence occur.
With promising advancements in technology investments, IT contractors are looking at a future of long contracts and a rich supply of work, but this may come at a cost, thus it is vital that contractors purchase the correct, necessary insurance.