Management consultant insurance explained

May 30, 2009 · Filed Under Management consultant insuranc · Comment 

Why would a person need their own insurance policy because of their business? It depends on their line of work, and if they are an outside consultant providing professional advice, like a management consultant, they may run some risks which have not cropped up on their radar yet. As a consultant, a professional carries an amount of responsibility and duty of care to do a good job. If a client feels that the management consultant has failed them and worse still made a mistake, they could take legal action. Management consultant insurance with a professional indemnity element is a way of guarding against this eventuality.

Indemnity cover is really a complicated word for a type of insurance which pays your legal bills in the event you are sued. This might happen because a client has accused you of making a costly error, causing what is often called a financial injury. They may seek compensation, and management consultant insurance with indemnity will cover not just your legal bills but also this too.

Facing legal action will often mean seeking legal advice, and this will rarely be cheap. Indemnity cover as part of a general policy will pay for the cost of hiring legal help, up to a certain limit which is agreed when you take out the policy. Payouts are not loans, but straightforward cash from an insurance company in the same way you can expect money after a successful car insurance claim. It will cover all your legal related costs up to the limit, and right the way through the courts system so it does not matter how far your case gets.

It also does not matter how valid the claim against you is, and some will be completely without foundation, but might still need defending. The more high profile cases you may have heard about in the press can lead to compensation totalling hundreds of thousands or millions of pounds, but this is rare, and a policy limit with this amount on it won’t be needed by a certain number of businesses.

There are some extra elements to indemnity cover, which includes protection should you be accused of breach of confidentiality or copyright, defamation, which must be unintentional, slander, and the damage or loss of a client’s important data or documents.

Management consultant insurance with professional indemnity can also be used to cover you for a period after you decide to wind down a business or retire. This means you are not vulnerable to an action due to your cover ending just as you stop trading. Just because you are no longer working in the same capacity does not mean you will be immune if a legal claim arrives afterwards, relating to something which happened some time ago.

Basic guide to management consultant professional indemnity insurance

Sorting out the right kind of cover is essential for any business, whether you are a pizza delivery driver or a management consultant. Different kinds of policy are appropriate to different kinds of business, and indemnity insurance is an option for anyone worried about the legal risks of what they do. Specifically it applies to the chances of you being sued, or rather the financial implications if you ever face legal action. For anyone unsure about what it does, here is an outline of what management consultant professional indemnity insurance is.

Indemnity cover is not exclusive to management consultants and can apply to anyone who offers professional advice for a living. It covers you if you are formally accused of making a mistake in the course of your business, i.e. being sued.

Besides mistakes, which may result in legal action if they cost a client money, policies normally also cover omissions, acts of negligence, and other allegations. These are normally claims you have breached confidentiality or copyright, defamation and slander, and the loss or damage of a client’s data or documents.

Should you be formally accused of any of this, you simply claim on your policy, which will pay out towards your legal defence. Hiring legal help is hardly ever a cheap experience but is essential in many cases if you wish to defend an action effectively.

Management consultant professional indemnity insurance also typically pays out for the cost of any compensation which might be awarded against you in the event the claimant is successful. As you might have guessed, indemnity cover will not pay out for an indefinite amount and there will be a ceiling attached to a policy. Thankfully this can normally be specified by the policyholder, and the larger and more high profile a firm is, the larger they may want this ceiling to be. Of course a premium may be priced accordingly.

Management consultant professional indemnity insurance will also pay out no matter how valid the claim against you is an no matter how far through the courts system the case goes. Protection will be provided all the way up to the High Court if necessary, provided you are still within your cover limit. It’s therefore a useful and potentially vital safety net against the financial impact of a frustrating and costly legal claim.

Legal bills covered with management consultant professional indemnity

May 28, 2009 · Filed Under management consultant professional indemnity · Comment 

Anyone who has gathered detailed and expert knowledge can set up as a management consultant, offering their valuable experience to clients who need the advice of an outside source. Some may need you to retrain a section of the workforce, others may need you to even run a department for a period of time, while some will be looking for advice towards developing new business strategies. All of these things are challenging and rewarding, but all of them can carry hidden legal problems. Should you make a mistake, or even be accused of it, you could face legal action. While this is part of the job of being a freelance and part of being a management consultant, it is also unpleasant and potentially a financial disaster. Management consultant professional indemnity policies provide you with an invaluable shield against legal action by paying for your legal defence.

Many people decide that this kind of cover is useful simply just as a safety net. It will kick in if you are formally accused of making an error, omission, or acting negligently the normal course of your work. Should this have caused a client to lose money, they may feel they have suffered what is called a financial injury. This means they will take legal advice about getting compensation in some cases.

Of course you will need a legal defence, and to do this effectively it can help to not have to constantly worry about the legal bills associated with it. Management consultant professional indemnity picks up the tab, even covering the cost of compensation should it be awarded against you.

Of course there are some conditions, and these normally include that what you did was not deliberate or malicious. For example, a policy will normally protect you against claims that you have defamed somebody, with a condition that you did not defame someone knowingly. Other eventualities typically covered include the loss or damage to a client’s data or documents, although again obviously this will obviously need to not have been deliberate.

An indemnity policy like this normally also protects against the claim that you have breached someone’s confidence or copyright, and if you have employees as part of an agency, for example, any claim that they have acted dishonestly will also normally be covered.

Management consultant professional indemnity typically comes with a ceiling on the policy, beyond which the insurance company will not pay out. However, limits can normally be quite high, and you will need to make a decision about what amount would be suitable for your business. Companies dealing with higher level clients with a turnover in the millions, may need protection for millions of pounds, for example, while a lone freelance with a limited client list may not need this.

Why management consultants insurance?

May 27, 2009 · Filed Under management consultants insurance · Comment 

As a management consultant you may be required to undertake a variety of tasks for a client, from delivering a single day of advice and seminars, to a contract lasting for months and requiring you to help realign the entire direction of a department. No matter how big or small an assignment the client is, it will carry with it a certain amount of responsibility. The management consultant, as a professional in their field, is expected to deliver results and unsurprisingly a client will typically not be best pleased if they feel your advice is not worthwhile. Worse still, they may decide what you have attempted was a mistake or actually harmed their business, which can lead to legal action. Management consultants insurance with an element of professional indemnity can help guard against this eventuality.

Of course, the higher the risks and the higher the responsibility, arguably the higher the chance of facing legal action if something goes wrong. While being sued is hardly a common experience, it does happen and can be time consuming and expensive.

Even if you feel a claim against you is invalid, you will still have to defend it properly. Some clients may wrongly accuse you of making an error, some may be of the opinion that something has not worked as well as it should have done. Whatever the reasons, you will need to hire legal help if you face an official legal complaint.

Management consultants insurance with indemnity cover would pick up the cost of your legal defence, potentially saving you from q bill running into thousands of pounds or more. The money you would get to cover your legal help is not a loan, simply an insurance payout, and most policies will even cover the cost of compensation if it is awarded against you.

In exchange you simply provide your insurer with the premium as you would do with any other kind of policy, and this kind of insurance protects against mistakes, acts of negligence, or claims you have breached someone’s confidence or copyright. An ordinary management consultants insurance policy will often also protect you against unintentional defamation claims, and the accusation you have lost or damaged data or important documents belonging to a client.

How a computer contractor professional indemnity cover plan works

When starting out as an IT consultant it may seem unnecessary to get something like indemnity cover in place, particularly if you have a small number of clients which have ended up on your books due to word of mouth and recommendations, but as your business grows, your needs may change and you may find that getting a greater form of protection is necessary. Computer contractor professional indemnity cover can be simple to arrange and inexpensive, and will pay the cost of your legal bills should you ever face an action.

Being sued may not seem particularly likely depending on your circumstances, but where does happen it can sometimes appear without warning and can be lengthy and costly. A solicitor’s letter may arrive relating to something which happened months ago, which has since led to a client losing money due to something they see as an error committed by you. No matter how valid the claim is, it will have to be defended, and this will normally mean hiring legal help.

Indemnity cover would kick in and cover the cost of your legal bills if this happened, and normally applies to a mistake, error, omission, or act of negligence. It normally also protect you should you face a claim that you have breached confidentiality, breached someone’s copyright, or that you have lost or stolen important data belonging to a client. In short, it is designed to pay out for some of the more common legal pitfalls which can affect a business.

Once a policy is active it will cover your legal bills up to a certain limit, and this can be quite considerable. Some larger firms may have protection running into millions of pounds. Not every company will need this, but you will need to decide what protection you need and this can be based on the size of your clients and how your business is run. Note that the limit of your policy will normally include a provision that you will get payouts towards compensation, should this be awarded against you.

There is a risk of being under-insured if you specify a limit which is too low, but of course if you choose a limit which is not appropriate, there’s also the chance you will be paying for a high level of cover which you do not really need.

Computer contractor professional indemnity cover normally also allows you to specify an excess, which can be used to reduce the cost of your premium if necessary. You can also normally enquire about getting public liability insurance included with your deal. Common extras also normally include what is known as overrun cover, allowing you to have protection after you wind down a business or retire, guarding against any periods which would otherwise leave you vulnerable and without protection. Retroactive cover can also guard against things which happened in the past, for which you only receive notification of after you bought the policy.

Why some firms need computer contractor public liability cover

May 25, 2009 · Filed Under computer contractor public liability cover · Comment 

With the industry virtually changing by the week, the work of a computer contractor can be an exciting and profitable business. Working as a freelance or adviser is also beneficial for those who enjoy a varied lifestyle, and those who prefer a mix of different challenges. But those working as outside experts also carry with them a large amount of responsibility to their clients, and therefore may also need to make sure they have the right protection in place. Computer contractor public liability cover is something that many companies in the industry see as essential, depending on the nature of their regular business.

Public liability insurance can be useful to any firm which works in the public domain or has members of the public on its premises on a regular basis. To provide an example, a computer contractor might be hired by a local authority to help them analyse traffic patterns in the local area. This may mean going out into the public domain with council officers to test software and equipment. At this point you are vulnerable to any legal action a member of the public might take if they suffer an injury due to something the contractor has done, perhaps not taking proper duty of care when ensuring on site safety with regards to equipment, cables, or other risks.

Of course, the arrival of ‘no win no fee’ solicitor’ services may mean there is a higher chance of facing legal action if there is no accident. Even the most invalid claims will still have to be properly defended, and computer contractor public liability cover will pick up the cost of your legal defence, and even any compensation which may be awarded against you.

However, a computer contractor public liability cover policy will have a limit which you must set when you take out the policy. This will be directly related to the size of your business and the regularity with which it operates in public. The more you deal with the public and work in public, the more likely you are to need a higher ceiling of perhaps hundreds of thousands of pounds or more.

Using computer contractor professional indemnity insurance brokers

Getting the right professional insurance in place can be a bit of a challenge, particularly for those who have not bought before and may be unsure about what they really need. Indemnity insurance is a product which pays out for your legal defence, for example, and can be useful for professional advisers including computer contractors. There are a number of extras available on most policies and there are cover limits and other options to negotiate, so some people may turn to computer contractor professional indemnity insurance brokers.

Brokers are simply middlemen, between you and the insurance company, who have access to a number of policies and firms. You simply tell them what you want, and they will then go and obtain a number of quotes from different providers. In simple terms using one is a quicker version of doing the rounds yourself, where you may spend a considerable amount of time contacting a number of different people for a number of different quotes.

Indemnity insurance brokers may be able to give you an idea of what is appropriate for your business, although all indemnity policies have the same core element. They will pay out for your legal defence should you be formally accused of making a mistake, omission, or act of negligence in your general day to day business. This applies whether you are a computer contractor or any other professional adviser who may need this sort of cover.

They may ask you a little bit about the nature of your business, your turnover, if you have any employees, and how you agree contracts and deals with your clients. Once they have this basic information computer contractor professional indemnity insurance brokers will then go off and find out what deals are available for you.

You can also ask a broker about some of the extras with this kind of policy, and may ask them for tips on agreeing a cover limit for you, as indemnity insurers will not pay out indefinitely. You can also enquire about getting public liability insurance as part of your deal, and also about things like retroactive cover, an element which will protect you against a legal claim which arrives after you have taken out your policy, but which applies to something which happened before you even bought it.

Computer contractor professional indemnity insurance brokers are therefore a wary of finding out how much it will cost for the right insurance for your business, and could save you time when it comes to getting a good value deal. If you are unsure, you can check with them what each policy includes, as many will also cover you for defamation, breach of confidence or copyright, and even the loss of a client’s data or documents.

Getting an effective computer contractor professional indemnity cover plan

Deciding on what you do and do not need when setting up a business can be no easy task. Insurance cover will be needed for equipment, and you may need public liability protection depending on the nature of your work. Computer contractors also carry a certain degree of responsibility which means they are at risk of legal action if they make a costly mistake. This is why computer contractor professional indemnity cover is another thing to consider, particularly if you feel you would not be able to pay for a legal defence.

Indemnity cover is simply a phrase for a type of insurance which will pay out for your legal defence. Getting it need not be any more complicated than arranging a common car insurance policy, and may actually even be more straightforward. You may be asked to provide information about the nature of your business, its turnover, and who you regularly deal with client-wise.

You will then be asked to select the cover limit, and this can be hundreds of thousands or even millions of pounds. In most cases an indemnity policy will pay out if you are formally accused of making a costly mistake, error, or omission, i.e., being sued.

This may normally happen when a client feels they have suffered a financial injury because of something you have done or failed to do as a computer contractor. A simple mistake can lead to someone losing data and therefore money, so it can pay to have a form of protection in place so you can have an effective legal defence.

Of course, legal action is not guaranteed to happen, but if it does occur it can be lengthy and expensive. Computer contractor professional indemnity cover will pay all your legal bills up to the agreed limit, and even cover the cost of any compensation which might be awarded against you.

Computer contractor professional indemnity cover can also protect you if you are accused of breach of confidence or copyright. It may also provide a payout if you are accused of unintentional defamation or slander. If you are a firm with a number of employees, should they behave dishonestly or be accused of it, you will also get protection.

What is computer contractor PII?

May 22, 2009 · Filed Under Computer Contractor PII · Comment 

It is easy to get tied up in jargon and phrases when you’re sorting out insurance cover for your business, and PII is a phrase you may have heard of but which you may not fully understand, or have never looked into properly. It stands for professional indemnity insurance, and it is a type of cover which pays out if you face legal action because of a mistake you have made professionally. Computer contractor PII is simply a form of this cover which is geared specifically towards computer consultants.

PII can be used by a company as a whole or by one freelance individual. It gives you financial support towards a legal defence should you ever face action because of an error you have made professionally. Typically this means being sued, to use a colloquial term.

Even actions which are completely invalid and unfounded may have to be defended properly in a court. This means hiring legal help and although cover can’t take away the action, it can remove the financial strain associated with it. The normal circumstances covered by this kind of policy are mistakes and omissions, acts of negligence, and claims you have breached confidentiality or copyright. It also normally pays out if you are accused of unintentional defamation, or if the employees of a computer contractor company are accused of acting dishonestly and perhaps stealing from or defrauding a client.

Computer contractor PII will normally pay out towards your legal defence no matter how far your case gets. Should you end up in the High Court, for example, it will still pay for your legal help, provided you are still within your cover limit. The limit applies because insurance companies do not agree to pay out towards an indefinite amount of cover should you need to use your policy. However, limits can be set quite high, to hundreds of thousands or even millions of pounds. Of course, not every company will need this, but you will need to decide what is suitable for you.

This kind of insurance also pays out towards the cost of compensation should it be awarded against you. Normally a policy will also allow you to add some optional extras to her, such as public liability insurance an protection for a period after you winds down a business or retire, as no longer trading is not a defence against a legal claim relating to something which happened in the past.

Computer contractor PII can also be arranged to protect you against things which happened in the past. This might sound strange, but is often referred to as ‘retroactive cover’, a clause which allows you to claim if you faced a legal action in future which refers to an event which happened before you even bought the insurance, although of course you will need to have had no notification you are going to be sued before you took out the policy.

Legal protection with computer consultants indemnity insurance

May 21, 2009 · Filed Under Computer Consultants Indemnity Insurance · Comment 

Many professionals may worry about legal risks but do little to actually find out how they can get protection against them. Computer contractors are a group which may provide a high level of professional advice and services, and as a result may sometimes run the risk of legal action if they get something wrong. A costly error could mean work or advice is useless, or worse still costs a client money. This is why many people see computer consultants indemnity insurance as a vital tool.

Some people may feel protection for contents and equipment is enough, while others may already be paying for a public liability policy. But being sued because of a genuine mistake can be unpleasant and expensive. To give an example, a computer professional might be hired to transfer data from one hard drive system to a completely new way of storage. In doing so they may lose company files by accident, costing the client money. The client may then decide to seek compensation through legal means.

In such circumstances computer consultants indemnity insurance would pay for the cost of your legal defence and even the cost of any compensation which would be awarded against you, up to certain limits.

When you face legal action you’re probably going to need legal advice, unless you plan to defend yourself. This advice can be expensive but crucial if you wish to defend a case efficiently. A policy will pay for your defence up to an agreed limit, which is decided at the start of your policy.

Besides mistakes, indemnity insurance typically pays out for allegations that you have breached confidence or copyright, acted negligently, or lost important data or documents belonging to a client. If you are a company with a number of employees, you would still be covered even if a client says they have lost out because an employee has acted dishonestly and perhaps stolen or defrauded a client.

Computer consultants indemnity insurance need not be overly expensive either, as depending on the limit you want, you should be able to get something which is affordable. The bigger your businesses and the bigger your clients and contracts, the higher level of limit you are likely to need. You can also select a number of options to go with your policy, including public liability insurance in some cases, and cover for after you have wound down a business or retired.

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