Contractors Sued – Will more IT contractors be sued in the future

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Contractors Sued - Will they be sued more - liability insurance for contractors
Contractors Sued - Insurance for Contractors

Contractors Sued

Will there be more IT contractors sued in the future?

Will IT clients be more litigious in the future when projects go wrong. That’s especially if their clients sue them? They may look to make scapegoats of contractors.

More Litigation

There hasn‘t been too much litigation over software projects in the past. With so many projects going over budget or failing to deliver what was required, especially where new (and oversold) technology is involved, it is a surprise that there has not been more court cases.

Perhaps there will be more in the future.

The big question for IT contractors is whether companies sued, who have had contractors on their projects, will try to push the burden onto those working on the projects.

A lot more IT contractors have Indemnity Insurance these days.

They may need it in the future!

No Insurance

I remember at one company where I worked as Chief Information Officer, we had a project, that we outsourced to a software house, go badly wrong.

They canned it, mainly because the software house developers and management were incompetent. It cost several million pounds.

Ernest Saunders (he of Guinness fame) went round the room at the inquest asking the Finance Director, the Managing Director, and them myself, one by one, if we had Indemnity insurance.

I felt a chill, and the hairs going up on the back of my neck when it came to my turn to be asked.

I, of course, did not, as this was way back in 1998. However, I wondered whether he was being serious or not, as I didn‘t have a spare million or so.

One wasn‘t really sure with Ernest!

We may see more contractors sued in the future.

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