What Is Professional Indemnity Insurance

Recently information was released saying that the Public section information technology contractors are liable to face severe professional indemnity because of drastic data loss. For people working in Information Technology sector, for them data is very crucial and loss of data can lead to a huge financial issue. This is the situation in which the importance of professional indemnity insurance comes in to the picture. This policy covers the entire loss beard by the IT Company due to unethical breach of data.

 

Different companies have different profession ranges with varying risk levels. One should clearly understand the fact that higher risk of data breach higher is the need for having strong and wide professional indemnity insurance coverage.

Analysis

Before providing insurance, the company deeply analyses the process followed by the information technology sector for handling information. Based on the security level and other criteria or ensuring the safe transfer of information the professional indemnity insurance offers a policy to the concern company.

Premium Varies

If the insurance company finds that the IT sector asking for insurance is lacking in the security of their data then the coverage offered by the insurance is less. Whereas, if the insurance company finds that the IT sector asking for insurance has a very strong security for data transfer and almost negligible chance for data breach then the coverage offered to such companies is high. 

Companies Should Also Analyze the Insurance

Along with the Insurance Company it is the IT sector also that should clearly analyze the benefit offered by different data insurance companies. This will help them to identify the company that will provide best coverage at the most appropriate premium amount. This is a very important step to ensure the insurance company is good and will provide expected benefit at the time of data breach or any other misfortune.