Suing UK Freelancers for Mistakes
Will more companies end up suing UK Freelancers for negligence for mistakes they make?
Furthermore, will they take advantage of the Professional Indemnity Insurance that most contractors now have?
Matalan, the retailer, have written off more than 20 million pounds on software which they bought. This was on the advice of their IT adviser Kurt Salmon Associates.
They bought new merchandising software on the advice of Kurt Salmon but have now decided just to upgrade their current systems.
They appointed Kurt Salmon in 2001 and got rid of them in 2004 and are now suing them.
Perhaps it is their fall in profits of 30% that has put Matalan in bad humour.
Suing Those Supplying IT Services
However, it does seem to be a trend now that companies are looking to sue those supplying them with IT services which they don‘t like or don‘t implement.
Recently the Government came to a multi-million pound financial settlement with EDS over systems that were faulty.
Suing IT Contractors for Negligence
One wonders how long it will be before the end client themselves, or by those selling services to the end client, will sue IT Contractors.
For instance, if there were IT Contractors involved in giving the Kurt Salmon advice might Kurt Salmon consider suing those contractors?
It has now become pretty much compulsory in many places to insist that IT Contractors have indemnity insurance.
One suspects that it is just a matter of time that we hear about IT Contractors getting sued by their client. That would be for supplying a system, or part of it, that doesn‘t do what they want.
That seems to be true of a lot of new systems that get built.
Professional Indemnity Insurance
Clients suing UK Freelancers may happen a lot more in the future.
Now that most of them have professional indemnity insurance it could make it more worthwhile.
Furthermore, that could push premiums up for contractors.
For more freelancer insurance advice see Insurance.
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