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Modern protection

30 April 2009 / Peter Causton
Issue: 7367 / Categories: Features , Profession , Insurance / reinsurance , Technology
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Peter Causton examines new types of claims in the modern world

When people refer to a professional indemnity claim, they are usually thinking about a claim against a traditional type of professional, such as a solicitor, surveyor or accountant, who normally carries compulsory insurance.

However, we are seeing an increase in technological convergence, whereby computing, media and communication networks are interlinked. Increasingly, business itself is being conducted in digital media spaces across a network of interconnecting devices. This is affecting traditional professional service sectors as well, with IT rapidly affecting their method of provision.

However, despite the expansion of media and IT businesses in the UK they are often the last to see the need for professional indemnity insurance. Contracting parties are increasingly demanding insurance cover as part of the contractual negotiations, but it is not compulsory. Cover can be obtained for:

      
      ●     technology and telecoms companies;

      
      ●     broadcasters and publishers; and

      
      ●     direct marketing companies.

Media and technology professionals need to consider obtaining insurance if they are to

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