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Contractor Professional Indemnity Cover: Better Safe Than Sorry

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As a recruiter, you would like to believe that everyone you put forward to your client for hire on a contract basis is honest and trustworthy.

While this is mostly true, 3C Global would nonetheless like to take the opportunity to remind our clients and recruiters alike – to ensure that any contractor which is placed on a project has, or is protected by, a professional indemnity insurance policy to protect against fraud and theft.

This gentle warning comes after reports of a serious security breach which occurred recently in the US Army. IT contractor Barrance Anthony has been convicted of making duplicates of files stored in the US Army IT system. Anthony was found to have accessed these files shortly after the termination of his contract on 8 December, 2016. In addition, he was also found to have made copies onto his own Amazon Web Services (AWS) system.

Furthermore, Anthony reportedly launched 40,000 cyber attacks, rendering one of the US Army’s systems inaccessible for two weeks and causing the Army to incur losses of more than USD$1.1 million.

Although incidents of this extreme nature are thankfully extremely rare, it is nonetheless a timely reminder for all parties in the contract chain to ensure that they have appropriate insurance in place in the event of an incident such as the one above.