Expect the unexpected

In an ever increasing world of litigation we are now seeing more and more companies pursuing claims for breach of contract which stem from a desire to free themselves from a contract they no longer want to honour. It is the technology sector that is seeing the brunt of these claims and can be incredibly frustrating when a firm is convinced that the project is going to plan and hitting the agreed milestones when suddenly, all contact stops and you are hit with a claim for breach of contract.

No one wants to defend a professional indemnity claim. The ‘rain cloud effect’ of litigation is not only bad for business reputations, the financial costs can run into millions.

In today’s business world even the most efficient and risk aware businesses are seeing claims brought against them, and that is why when arranging your professional indemnity cover you need to look at the following:

  • Professional indemnity claims can come from the most unlikely directions (following best industry practice is not necessarily going to prevent a claim)
  • Blue chip clients have more resources to launch a legal action – and the bigger the company, the bigger the claim is likely to be
  • Working for US based companies exposes suppliers to a more litigious environment
  • Following the changes in how business is transacted and the ease to trade internationally, Worldwide professional indemnity cover is critical
  • When arranging your Professional Indemnity cover ensure that the policy has a clear unambiguous definition of breach of contract and that you fully understand the cover provided by this section

Thanks to our partners at Hiscox for providing the information in this article.

If you would like any further information surrounding Professional Indemnity insurance or some real life claim examples please contact Ben Butler on 0118 916 5481 or complete an enquiry form.

Author: Ben Butler | February 26th, 2014

Contact the author

Ben Butler
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk