As a high-pressure job, the role of a management consultant can be both difficult and exhilarating. Quality training and preparation usually means everything goes smoothly, be it passing on new skills to a team of people or conducting an in-depth performance analysis for a firm. Mistakes are rare, usually because the nature of the business means communication breakdowns, misunderstandings and mix-ups are not commonplace. However, this is an area where a slip-up can be very costly indeed, and this is why many advisers take out management consultant insurance as a way of ensuring they have protection should the worst happen.
A problem can quickly turn into a crisis if a client realises they have lost money because of a mistake made by a management consultant. Some will be minded to seek compensation through the courts for their loss and this can mean a long and complicated legal case. A client may even choose to sue simply because they are unhappy and not because they have suffered a loss as a result of the actions of a management consultant. Unfortunately even these invalid claims will need to be defended, and this can lead to a big legal bill.
Management consultant insurance policies will not only pay the costs of defending a claim, they will also pick up the tab in respect of any compensation awarded to a client, up to limits set out at the start of the policy. Besides straightforward mistakes made on the job, cover will also be provided for other pitfalls such as libel actions following unintentional defamation, accusations of breach of copyright or confidence and even dishonest actions committed by a consultant’s employees.
Some experts working in the area will deal with high-level problems being experienced by high-profile clients. This can mean masses of responsibility and this can lead to a need for a higher level of cover. In this sense management consultant insurance can act in much the same way as other types of insurance. A policy holder must decide what amount of legal fee and compensation cover they want – be it £50,000 or £1 million, with premiums increasing accordingly.
Other extras which may or may not affect cost include whether public liability is included or not, and whether any tailored time periods are applied to the policy. These might include what’s know as ‘run off’ periods for consultants retiring, stopping trading or changing insurer. Another option is ‘retro active’ cover for any claim which arrives relating to an event which took place before the policy was even taken out.
Although risk is part of any job, it can always be managed and an insurance policy can help minimise the impact of an otherwise stressful and costly legal claim. This is why even smaller firms and independents choose management consultant insurance.
Seeking the right kind of insurance cover for a new business can seem like a tricky chore at times. A range of policies, providers, and cover levels can sometimes combine with jargon to create what might seem like a maze. Some products are less complicated than they first appear, for example. Indemnity insurance is one type of cover which need not be daunting and which can be organised with relative ease. Some choose to seek out cover themselves, while others choose to get help from a management consultant indemnity insurance professional, such as a specialist broker.
Such specialists can get a range of different quotes from different providers and pass them on to an applicant for a decision. This can save time and help a consultant choose what level of cover is right for them. As a professional, a management consultant can expect to carry out duties such as running projects for companies and managing teams of people in an effort to improve performance. Should they fail in their task due to an error or act of negligence there is always the possibility of legal action, particularly if the mistake leads to a client losing money. It is this legal action management consultant indemnity insurance guards against in that it will cover legal fees within the policy’s agreed reasonable limits.
A management consultant indemnity insurance professional might be able to suggest what level of cover will be suitable for a business. Typically levels from around £50,000 upwards can be selected, right the way up to millions of pounds which would suffice for some larger cases running for long periods. Remember a policy can payout not just for any legal costs but for any compensation amount awarded to a complainant. For this reason a careful and considered judgement, perhaps related to the size of the businesses and the size of its typical clients, is perhaps needed when deciding on a cover level. However, putting a policy in place need not be a complicated experience, particularly if expert advice is sought. One day it could prove vital to the survival of a business if a significant legal claim happens to land on the door mat.
Although it might be what many management consultants thrive on, the profession itself carries an enormous amount of responsibility. A professional can sometimes have the future of a client’s business in their hands. A wrong recommendation can have serious consequences for the firm, and this means the job itself carries a certain amount of risk. Legal cases are a real and significant threat, if not a certainty, and as such many professionals in the sector opt for management consultant professional indemnity insurance – a form of insurance which actually aims to protect a business from the consequences of being sued.
A management consultant can take on jobs for clients which include strategy, structure and human resources issues. Sometimes they will be responsible for helping to form detailed goals and processes for a company, designed to help it improve its financial performance. This means an error in their advice could actually lead to part of a business failing and result in a company losing money, which is sometimes called a ‘financial injury’. The firm concerned may then seek redress through legal action – an expensive proposition for all concerned, including whoever must hire legal help to defend their cause. This is where management consultant professional indemnity insurance can help.
Such policies simply cover the cost of legal expenses incurred as part of a defence to a case following a consultant’s error or omission in the normal course of their work. To qualify for a successful claim the error or omission must be accidental and not deliberate, ie malicious. Other things are also usually covered, such as allegations of defamation through libel or slander or cases related to alleged breach of copyright or confidentiality. Should a management consultant lose important documents belonging to a client or damage them, this will also be covered.
Another handy element of professional indemnity cover involves compensation payments. Should a policy holder lose a case aimed against them and then face a payout to the complainant their insurer will also meet this payment on top of the legal expenses cover. Of course, certain limits apply, and these will normally affect the cost of the premium. For example a policy with £500,000 in total cover is likely to cost more than one with £50,000 in cover.
For any management consultant changing jobs or insurers, ‘run off’ cover is available, which provides an additional period after a professional stops trading or otherwise requires an extra bridge of time allowance. Such added detail can prove crucial in certain circumstances as legal cases can be stressful and expensive, if not thoroughly damaging for some businesses. Management consultant professional indemnity insurance can therefore help a company negotiate almost any sort of legal storm, in exchange for a straightforward premium. In the long run, such an expense could save some businesses thousands of pounds or more.
Few businesses or freelancers go into the management consultancy business lightly and many firms like to have every angle covered, and this can include minimising legal risk. This is why many professionals in the sector tend to opt for a carefully considered management consultants insurance policy with professional indemnity cover.
Professional indemnity insurance is sometimes called PII or can simply be included into a broader, more general policy for a firm. Cover might include public liability insurance as well as any protection for a businesses premises and / or equipment. The indemnity part of the cover is arguably just as important as other insurance elements, and can be crucial in some circumstances.
Professional indemnity policies are designed to help a company or freelance management consultant should they face a legal challenge related to an alleged mistake or omission they made in the normal conduct of the business, such as making an error in the training of a group of a client’s employees that leads to them losing money. Even legal actions that have no basis will have to be defended, and in some cases the costs associated with this can be very high. Some businesses might find fighting a claim is so expensive that they end up in serious financial difficulty themselves.
Management consultants insurance that includes professional indemnity cover will pick up the cost of defending such claims, within agreed limits, and will even pay out any compensation which happens to be awarded to a client. It will even cover against a range of claims which includes being sued for libel after defaming someone. Breach of confidentiality and the infringement of any intellectual property rights will also normally be covered by a policy.
Management consultants insurance can be put in place in exchange for a straightforward premium paid in instalments or in one payment. Once in place it can take away the worry of what would happen to a firm should it face a significant legal claim and, even worse, a substantial compensation order. With the knowledge that an insurer will pick up the bill in such circumstances, a management consultant can therefore concentrate on the job in hand with added confidence.
Although some may be confused over what it is or even think it is an unnecessary expense, professional indemnity insurance, also known as PII, can be a vital safety net for a business. Besides keeping clients generally satisfied while balancing the books and managing employees, a computer contractor business actually has other concerns related to the general operation of the business. Although not a certainty, the possibility of a legal action at some point during the lifetime of the business is a relevant concern, and this is why some freelancers and larger firms take out computer contractor professional indemnity cover.
An indemnity insurance policy is geared towards protecting the business in the event it faces a legal claim from a client saying they have lost money because the contractor made a mistake, omission or committed an act of negligence. This can be important because more and more firms are more legally aware and inclined to seek redress through the courts should they suffer what’s sometimes referred to as a ‘financial injury’.
A simple error like deleting a client’s files or not installing software correctly could mean a firm loses thousands of pounds or more, leading them to file a compensation claim. Some companies may be merely dissatisfied or wrongly blame a contractor for something that goes wrong. Even these invalid claims must be defended, sometimes at considerable expense. It is these types of circumstances professional indemnity cover seeks to guard against.
Besides straightforward errors that might be made on a job, an indemnity product will also cover the legal expense of defending a claim for breach of intellectual property rights, or an accusation of breach of confidentiality. A company may also defame a client or other party thorough libel, leading to legal action, and this will also normally be covered. One feature particularly handy for IT firms is the provision of protection should a claim arise relating to loss of a client’s data.
Other handy elements will also normally include public liability cover – useful for contractors which expect to be completing work in public places. Worldwide cover can even be arranged for companies that expect to undertake work in foreign countries.
Time is an important consideration when it comes to legal matters and indemnity cover can be arranged to protect against one or two unwanted surprises. Legal claims can sometimes arrive with no prior warning and can sometimes relate to an event or events which took place weeks or even months before a solicitor’s letter actually arrives. For this reason many people look for computer contractor professional indemnity cover which is ‘retro active’ and guards against claims relating to something which happened before the cover was bought.
Working as a computer contractor can be an attractive proposition given the ongoing pace of growth and change in the UK IT sector. Whether trading as a larger firm or as an individual, a computer professional must work hard to secure clients and then deliver a professional service. Getting it right can be hugely rewarding but the process of running such a business is not without risk. Besides keeping clients happy, a firm must also consider its safety and insurance responsibilities, and may want to consider computer contractor public liability cover.
Public liability cover will step in should a member of the public make a legal claim following a mistake or act of negligence. For example a contractor might be asked to install a new network in a library by a council. An employee may leave a wire trailing while completing the work, which a member of the public could trip over and suffer an injury. This might lead to a claim for compensation which will need to be defended.
Hiring a solicitor or lawyer to defend a case can be expensive, and this is why many companies which might take up work in the public domain choose computer contractor public liability cover. Many local authorities and other businesses will actually not consider any contractor which does not have such a policy in place.
One key feature of computer contractor public liability cover is that it will often also pay out any compensation which is awarded to a successful complainant, up to certain agreed limits. For example if a firm has £200,000 public liability cover and faces a case costing £80,000 and resulting in £30,000 damages, they will not have to pay a penny, save any agreed excess. Of course, had the case and compensation combined costed more than £200,000, the firm would have been in danger of being under-insured – a factor each new policy holder must consider carefully when getting cover. Provided they opt for the correct level, a firm can therefore go on building and running the business without the worry of what would happen if they faced a legal claim from a member of the public.
Getting everything in place to make sure a business runs smoothly is rarely an easy task, and the computer contractor business is no different. Apart from ensuring a top service for every client and trying to secure new business, a company or individual freelance must also deal with headaches like tax, bookkeeping, electricity bills, supply issues, employees and other necessary administration like getting the right insurance. Indemnity cover, providing protection in the event that a contractor faces legal action, is important but getting the right deal can be time consuming. This is why some people turn to computer contractor professional indemnity insurance brokers.
Brokers will ask some basic questions about the nature of the business and will then contact a number of providers to get a series of quotes. This can help make life easier for the potential policy holder as it can save them time. Besides filling out an initial form, all they will then have to do is decide what level of cover they will need and decide which quote suits them best.
Looking for professional indemnity insurance in this way can ensure it does not break the bank for smaller businesses. It can also help someone to get an overview of what’s on offer from various firms quite quickly. Professional indemnity insurance is not something that should be rushed into, however. Potential policy holders must check what is included with each product, although a series of regular features make up the bulk of many policies.
A computer contractor firm or freelance can usually expect to be covered in the event that they face legal action following a mistake or omission committed during the normal conduct of their business. Also normally included will be cover for things like infringement of intellectual property rights, breach of confidence or even any dishonest actions of contractor’s employees, should they lead to a legal claim.
Computer contractor professional indemnity cover will also step in if a claimant is awarded damages after a legal victory, meaning it will not only pay the cost of defending a court case, it will meet the cost of any compensation awarded should this defence prove unsuccessful – there is no requirement for a case to be won in order for the insurance to apply. Limits and excesses will apply, however, as with more regular types of insurance. The sizes of these will depend on the individual policy holder.
So, computer contractor professional indemnity insurance brokers can help a firm or individual shop around for the right type of cover for them. A broker can be the first step towards putting exactly the right type of cover in place. Once secured, the policy will allow a computer contractor to go on doing the job they enjoy without worrying unduly about the legal clouds gathering if they make an error.
When setting up as a private IT professional, many people going into the industry might think they will get through most of their careers without making a mistake which harms a client. Most will probably be right in this but the reality is that mistakes can still happen, even with the most detailed and professional amounts of planning. How many people do you know who have accidentally deleted or lost important data belonging to themselves or someone else? It is easy to do both in the home environment and while out doing an IT professional’s job. Losing data is just one example of what can go wrong. Therefore many IT professionals working on a more casual or hire basis go for what is known as computer contractor professional indemnity cover.
In a nutshell, indemnity cover is designed to help guard against what happens if someone is sued by a client following a mistake. This usually happens when a client has suffered a ‘financial injury’ – ie lost money. A simple failure in a network or incorrect installation of software can end in a business losing cash, and they may be minded to therefore recover what they have lost through a court case. Such action means the contractor will normally have to hire someone to defend their case, and this can in turn cost thousands of pounds or more. A form of computer contractor professional indemnity cover will pay for these costs, up to certain agreed limits and in some cases can help a business stay afloat even in the face of a significant legal case.
Different cover levels are available for different premiums and excesses can be agreed as well, which can also increase or decrease the cost. Within these limits, indemnity cover will even pay any compensation which might be awarded to a successful claimant. Computer contractor professional indemnity cover will also guard against a range of other legal eventualities, such as facing a case related to alleged breach of confidence or intellectual property right infringement. With such bases covered, a computer contractor can then get on with providing a professional service without wondering what would happen to their business if they were sued following an unfortunate mistake.
Going it alone as a self-employed IT professional or founding an entire company is no mean task. It involves courage, planning, and having a sound business mind. Laying the right organisational framework can often secure the future of the business, even though administrative tasks can seem tedious. Putting business insurance in place is therefore arguably as necessary as getting hold of the right equipment. One of the typical types of cover taken out by freelance IT professionals and firms is computer contractor PII, or, to give it its full title, professional indemnity insurance.
Although indemnity insurance might be more associated by some people with doctors, engineers, or other professions, the increasingly legally-aware nature of today’s business world means it is now at least considered by almost every type of company which offers advice to clients. Indemnity insurance is designed to guard against some of the legal risks that could see an individual or business facing a very large legal bill following a claim by a client or other party. It typically applies to any claim made following a mistake, omission or act of negligence. Although the contractor themselves may not be at fault at all, and a client may lodge a complaint just because they are unhappy, such accusations will still not be cheap to defend in court – meaning even a company which is facing an invalid claim will often still have to pick up a bill.
Computer contractor PII will pay the associated legal costs of defending a case. For example a contractor might make a mistake in installing a network firewall for a company which means the client then loses valuable data and sues. The contractor then finds they must hire a defence solicitor which costs them £30,000 during the course of the case. An indemnity policy will pick up this bill entirely, provided it falls within the agreed limits of the policy.
In this sense PII is not much different to more usual insurance policies. It can be set to cover certain limits – say £50,000 of legal bills, £100,000 or £1 million, for example. An excess will also normally be agreed between the policyholder and the insurer – which is an initial amount which must be paid before the cover kicks in. So an excess of £1,000 means the first £1,000 of a £30,000 legal bill will be paid by the policy holder with the insurance company picking up the remaining £29,000.
Computer contractor PII can also be extremely useful in that it will often cover more than cases which result from straightforward mistakes. It will typically also cover accusations that a contractor has breached someone’s copyright during the conduct of their business or that they have committed a breach of confidentiality. The possible dishonesty of any employees of a contractor will also normally be covered. It is thanks to this relative flexibility and detail that a policy will therefore help form an effective legal blanket for almost any IT-related business.
Handling a large IT security operation or simply installing an effective firewall system is usually a fairly simple task, especially for a professional IT consultant. The right training and planning usually ensures everything goes smoothly and to the benefit of the client involved. But mistakes do happen, even when the best in the industry are carrying out the job. Losing a client’s data or accidentally damaging their network could lose a company a substantial amount of money in some circumstances. This leads many professionals to get computer consultants indemnity insurance as a precaution.
Although indemnity cover will not simply fix a problem immediately, it will pay the potentially large costs of hiring legal help to defend a case following a consultant’s mistake, omission, or act of negligence. How much financial help is given will depend on the individual policy as different levels of cover are available. For example, a consultant may decide they need £25,000, £50,000 or £100,000 of cover for potential costs, whereas a larger company with many employees might want protection up to £1 million or more, with premiums typically being priced accordingly.
Computer consultants indemnity insurance will also normally go beyond mere mistakes. It will cover a whole range of legal eventualities such as an action for defamation, an accusation that intellectual copyright has been infringed, and even cover for the costs of defending a claim for compensation following an act of dishonesty from an employee.
Sometimes a legal claim will arrive a long time after an event has taken place, and may even date back to when an insurance policy started. For example a computer consultant may start trading one month, complete several jobs for clients, finalise an insurance policy in the third month, and then receive a legal claim dating back to month one. Thankfully many insurers allow policyholders to select a ‘retroactive’ cover feature for such circumstances, which protects against historical claims. For the same reasons, ‘run off’ or ‘over run’ cover periods can normally be arranged for when a computer consultant changes jobs, stops trading, retires, or switches insurer. With almost every angle covered, a computer consultants indemnity insurance policy will therefore protect a professional against unfortunate legal pitfalls, allowing them to concentrate on completing contracts without worrying about the possibility of litigation if a mistake happens to be made.