By Jo Best, 11 September 2003 14:56
NEWS With businesses increasingly ready to go to court to settle their grievances, IT consultants have been on the receiving end of litigation more than ever before. Professional indemnity claims for IT consultants have risen more than 40 per cent in the last 10 years, according to specialist insurer Hiscox, with smaller companies often bearing the brunt of the court cases. While even simple errors like wiping data can see IT consultants on the business end of a lawsuit, when the legal system comes down in favour of the consultant, forking out for a lawyer can still see them heavily out of pocket. Sam Franks, product expert for IT consultants at Hiscox, said in a statement: "Clients are becoming more litigious, with technology playing such a critical part in the day to day running of businesses they are no longer willing to let mistakes go and bear the cost themselves." "Many small consultants will only buy minimal professional indemnity cover and as the costs of PI claims escalate this is not sufficient," he added. "The claim and the costs of defending it can threaten their business and, often more importantly, their reputation."
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