Whether your speciality is efficiency, sustainability or cost savings, the job of a management consultant can be a challenging and rewarding role. It can also involve taking on a wide variety of projects at different levels and at times can mean making recommendations and decisions which could make or break a client’s business. While most assignments and projects may go to plan, there will inevitably be some that don’t, and this is why management consultant insurance can be a useful safety net in certain circumstances.
If a client follows a consultants advice but later decides what they were told was of no use or actually lost them money, a client could ask for their money back or worst still, could launch a legal challenge and a claim for compensation, particularly if they feel their profits have been hit as a result of the advice.
Management consultant insurance can be bought which includes professional indemnity cover, a form of insurance which pays out for the legal defence of a case following a real or perceived mistake on the part of the consultant. The normal definition covers allegations of mistakes, errors, omissions or acts of negligence.
Court cases which arise when a client is not happy can be expensive as even the most invalid of claims will have to be defended properly. If a case is lost, and the claimant is awarded compensation by the court, there could again be a considerable bill to pay.
Professional indemnity as part of management consultant insurance would pay both the cost of compensation and the legal cost of defending a case, providing the combined total is within the defined policy limit. Beyond the policy limit any additional cost will be up to the policy holder, so it can be important to select a deal which is appropriate to the size of the business. So a company involving one individual freelance and a small handful of small to medium sized clients may want protection for hundreds of thousands of pounds, while a much bigger firm might want protection for millions.
Deals can also include a handy extra known as retroactive cover – this can provide protection for defending a claim which arrives in future but which dates back to something which happened so long ago it occurred before the insurance was taken out, although the policy applicant must have no knowledge of the impending claim when they take out their policy.
Management consultant insurance is a type of cover used by vast companies with hundreds of employees and by individuals just starting out with a handful of clients. It is a potentially extremely useful way of getting out of a law-related tight spot which could otherwise see some firms fall into financial difficulty or even fold completely.
Setting up a business can be a rewarding but time consuming process, and deciding what it is you exactly need to start with can also be difficult. Most firms rely on some form of insurance, and protection against theft and fire for premises and equipment is common, as is public liability insurance for some firms. Most forms of consultant may also want to bear in mind legal risks and the chances of being sued if something goes wrong. Indemnity insurance can guard against these risks by paying legal fees in certain circumstances. However, it can be difficult knowing exactly what level of protection is needed for certain firms, and going to a management consultant indemnity insurance professional could help.
An adviser like a broker can not only often find quotes from a number of different providers but also give some guidance about what kind of policy might be suitable for someone’s business. Indemnity insurance is a very wide product with some policies covering your legal bills and compensation costs up to tens of millions of pounds.
However, it can also be suitable for small scale businesses who are at an equal level of risk but who don’t necessarily need such comprehensive cover. Although the decision lies with the policy holder, a management consultant indemnity insurance professional could give you an idea as to what limit might be best suited to a company and provides a range of different products to choose from.
For example, some deals include public liability cover if it is needed, while others won’t. Others provide a legal advice helpline, while others won’t. Many firms provide an option for ‘runoff cover’, keeping an individual or company protected for a period after they have stopped trading or wound down a business in case they are sued at a later date.
These are just some of the common options and it could also pay to look closely at the circumstances covered – most deals protect against the likes of unintentional defamation and breach of copyright and confidence, plus claims of dishonesty and accidental loss of data or documents.
A management consultant indemnity insurance professional like a broker can’t choose a deal for you but they can help to outline the options and get a number of different quotes. The contacts and knowledge a broker has may not only save a consultant time but also money, as they may be able to get hold of deals the applicant can’t.
Professional indemnity insurance is not only seen as useful by many consultants and external experts, but as essential in certain sectors. Management accountants who are practising members of the CIMA must have a policy in place and this means getting suitable cover from an established provider. The options are numerous and it can help to know a bit about some of the various aspects of CIMA professional indemnity insurance before you take the plunge and get a policy.
Of course there is no guarantee that a management accountant will experience a legal claim, although it does happen. A heightened sense of legal awareness in today’s society means that people may be more inclined to seek formal redress if they feel they have been wronged.
The risks of being sued were once more associated with American business but in reality anyone in the UK who feels they have been damaged professionally or financially or even personally by someone’s actions can launch a legal case.
Whether or not the claim is valid it will have to be defended. Even erroneous claims which are born out of malice have to be defended if they are formally lodged, and this is where professional indemnity insurance can be particularly useful.
Certain instances you simply cannot plan for, but may cost you a considerable amount of money if you don’t have cover in place. Complex legal arguments can go on for months or even years, so it can pay to have indemnity insurance in place to pick up the tab and to even cover the cost of any compensation which might be awarded against you.
In exchange for a regular premium, the insurance company will effectively pay the cost of your legal defence if you are formally accused of a mistake, error, omission or act of negligence. CIMA professional indemnity insurance also pays out in the event that somebody faces an accusation that they have acted dishonestly or that they have unintentionally breached intellectual property rights or confidentiality.
It’s also worth pointing out that many potential clients may not deal with a professional who does not have a form of indemnity insurance in place. For example some official bodies like a police authority or a council may not deal with a firm which does not have protection.
CIMA professional indemnity insurance can be bought from specialist cover providers which will supply a deal which matches what is required. Note that in some cases it can be sensible not to stick to the absolute minimum with this kind of cover – there is the risk of being under-insured if a firm takes out an inadequate payout limit which runs out in the middle of a legal case.
Guarding against unpredictable risks is what insurance is all about, and this is why many professionals who offer their services on a consultancy basis look at guarding against some pitfalls with professional indemnity policies. This is a kind of cover which can pay for your legal costs in the event you are accused by a client of making a mistake which has cost them money. Management consultant professional indemnity cover is a form of this kind of insurance specifically tailored to those offering management advice either as an individual or as a company.
Previously only associated with certain professions, professional indemnity protection is now popular with a wide variety of businesses offering advice. Because a firm does not employ a consultant as such, they may seek to take legal action to recover costs or get compensation if they feel aggrieved following a real or perceived mistake. Of course, in normal circumstances a company can simply sack an employee to get what they may feel is redress, but costly errors made by consultants can prompt legal action.
Being sued can prompt huge problems to those businesses which do not have some form of protection in place or which do not have considerable resources to spend on legal help. If they lose a case, they can be ordered to pay compensation to the client, and this can run into hundreds of thousands or millions of pounds depending on the circumstances. Legal cases can often drag on for quite some time in some circumstances, months or even years depending on the client and the nature of the case.
This is why management consultant professional indemnity cover can come with a limit in the hundreds of thousands or even millions of pounds. However, not all consultants need a limit in the higher reaches – some smaller firms with a limited turn over and smaller clients can often get a much smaller level of protection.
The premium itself is linked to the policy limit, and also the nature and size of the business. Providers may also ask a management consultant a bit about how they agree and contract assignments and a bit about the qualifications or knowledge of the consultant. This can all affect the cost of the insurance, but policyholders can often also specify an excess as well as the limit, giving them a further element of control over the quote.
Management consultant professional indemnity cover can guard against not just general mistakes but some common and specific scenarios like losing or damaging important data or documents belonging to a client, unintentionally breaching confidence or copyright on an assignment and can even pay out if a legal claim arrives which is so old it dates back to before the insurance was even bought, something known as ‘retroactive cover’.
Because of the nature of their business, many management consultants may already be aware of some of the risks involved when it comes to legal action. While most professional relationships go smoothly and without problems, there can occasionally be a dispute over a mistake or perceived mistake which can lead to a client taking legal action. This can be a particular risk if a client or customer of a management consultant feels they have lost money as a result of following their advice. Management consultants insurance is a product designed to guard against this, and for a straightforward premium can act in the background and be activated if you ever need it.
It can be bought not just for individuals but for freelance consultancy firms with several employees or more. In short, management consultants insurance typically includes an element of professional indemnity cover, paying out towards the costs of legally defending a case. This normally applies to claims that a consultant has acted negligently or provided erroneous information.
Indemnity cover is taken out by a wide range of professional advisers and is no longer limited to the likes of architects and graphic designers. Because many management consultants will operate at a high level within a business, any error can lead to a client losing a considerable amount of money. While the chances of a slip-up may seem slim, any legal action which does result from a mistake can be costly.
Up to the policy’s agreed limits, a consultant insurance deal will often pay for the legal advice and defence relating to a case and even the cost of any compensation awarded in favour of the complainant. This is particularly crucial as depending on the nature of a case compensation can run into hundreds of thousands of pounds or more and policies are often available which cover above and beyond this limit.
Cover can also include an element of public liability cover, perhaps thrown in or available as an optional extra for an additional fee. It can even include a retroactive element, covering any claims which arrive in future but which date back so far they apply to something which happened before the management consultants insurance was bought.
While many businesses have a form of professional indemnity cover in place, many may be not fully aware of the options on their policy and exactly what it can do for them. Typically a policy goes beyond simply covering any legal bills which arise from mistakes made on a job. They can be used to cover different vulnerable time frames and can even include extra types of insurance. Computer contractor professional indemnity cover will often be no different and will also be quite flexible depending on the insurer.
While a typical professional indemnity policy protects against legal bills including compensation following mistakes or acts of negligence, many cover providers can provide a level of public liability insurance with their deal. This could be useful for computer contractors who have recently started to regularly work in the public domain or who have taken on a premises which is regularly used and visited by the public.
Many people often also associate computer contractor professional indemnity cover with wiped hard drives and broken networks, but it can also pay out if the policyholder is accused of accidentally breaching copyright or confidence. An intellectual property infringement could occur if an IT contractor hired to produce a website accidentally reproduces one which is identical or could be perceived to be identical to one which is already in existence and was produced by a rival firm.
Professional indemnity insurance also often pays out if the policyholder is accused of defaming somebody through libel, a potential danger when it comes to Internet publishing, and which can also be useful for some computer contractors.
Other common options include what is known as retroactive cover. This is a useful tool which allows the policyholder protection for legal claims which are lodged with them in future but which relate to something which happened in the past, so long ago that it applies to a period before they even took out the cover. Of course, for this to apply, the policyholder must not have had any notification that a notice might be imminent before they took out the policy.
There is also runoff cover, which can be arranged to provide protection for a firm after it has stopped trading or while it is inbetween insurers. An extra period of protection can simply be attached at the end of a policy, which can be helpful for a computer consultancy which is worried about the possibility of any claims arising after it has wound down. Just because a firm has decided to swap insurers for a time or because an individual is thinking of retiring does not mean that they will be immune to legal action relating to something which happened in the past.
Computer contractor professional indemnity cover can therefore be more flexible than many first believe – it can also include an excess, as with a common car insurance policy, which can be of use to anyone looking to bring down the cost of their premium.
Public liability insurance is an often underestimated and misunderstood product which applies to a greater number of businesses than many people believe. It can be helpful to any company which regularly deals with members of the public and or operates in the public domain. Furthermore, it can be crucial for companies which operate business premises regularly visited by members of the public. Consultants including IT specialists often fall into this category, so computer contractor public liability cover can be crucial to some firms in the sector.
Public liability cover exists because British law imposes a duty of care upon some people, typically including property owners, employers, and other traders. The duty of care part refers to the responsibility of the business or property owner for making sure that anyone who comes into contact with their work is safe. Those who are found to have breached that duty or fallen short could be open to being sued as part of a legal case.
Computer contractor public liability cover provides legal protection against such claims, effectively paying the costs associated with defending an action. It can even pay any damages which might be awarded against you. Depending on the circumstances and the incident, these can be quite considerable and in the worst cases would see a firm put into serious financial difficulty if they did not have protection.
The price of this kind of cover depends on how big your computer contractor business is, where you regularly conduct assignments, what you normally do, and how many people you employ. The bigger your business and the more often it deals with the public and in public, the higher the price of the cover might be.
While a business can minimise its chances of facing legal action by following good practice and health and safety rules, it can still be at risk of facing a legal challenge, either valid or invalid.
Computer contractor public liability cover can protect against the legal bills which would be run up defending a case, and even if you don’t need it, it can be a valuable safety net. Furthermore, some clients may not deal with a firm if they do not have public liability insurance in place. Local authorities are one common example of this.
Sorting out the right kind of cover for your business can be time-consuming and frustrating if you don’t already know exactly what you need. Professional advisers like computer contractors may need more than just protection for their buildings, contents and equipment on the road. Because of the nature of their work they may need an indemnity insurance policy, which can protect them if they face certain legal claims following mistakes and other incidents. One way of sourcing an effective and affordable policy is by using computer contractor professional indemnity insurance brokers.
Brokers are essentially middleman, like agents, who act between policy applicants and a number of insurance companies. You simply approach them and inform them of your rough requirements. They may even be able to offer you some guidance as to what kind of policy might be most appropriate for your business. They will then contact a number of insurance companies and negotiate different prices which you can then choose from. Some may be cheaper than others, and some may provide more detailed protection than others.
Using computer contractor professional indemnity insurance brokers can save time because otherwise any ringing around would have to be done by the policy applicant. Many of them will have specialist knowledge and contacts, and may be able to get access to deals you would not.
Of course you’ll have to have some idea of what it is you are after before you approach a broker. A typical professional indemnity insurance policy will pay out in the event the policyholder is accused of making a costly mistake, error, or omission in their day-to-day business, and also often protects against allegations of acts of negligence. It pays for the legal defence of a claim, and even any compensation which might be awarded against the policyholder.
Every policy comes with a limit, and some firms will feel that they need protection for millions of pounds worth of compensation and legal bills, while smaller companies may want less protection. Whatever your needs, a broker is likely to be able to help you in some way.
Computer contractor work may be most legally risky when carrying out maintenance to networks and hard drives, or perhaps when attempting to remove a virus from the system. However, besides mistakes on jobs like this, a typical indemnity policy may provide protection against the likes of allegations of breach of confidence or copyright, claims the employees of a consultancy have acted dishonestly, and may even include public liability insurance.
Computer contractor professional indemnity insurance brokers can get access to policies which include protection for all of these elements and more. They can often find some of the cheapest prices in the market and can help ensure that you get a deal which not only protects you adequately but also does not cost the earth.
Insurance is often seen as quite a dry topic and something of a hassle to arrange for many businesses. But some forms of cover are not as complicated as they first appear, and can also provide an extremely valuable safety net once in place. For example, computer contractor professional indemnity cover can be sorted out quickly and is more flexible than many people think.
Providing freelancers and firms with comprehensive background protection, it pays out in the event the policyholder faces a legal claim following an allegation of a mistake in the conduct of their business. Contractors can be vulnerable to legal action if they make an error which leads to a client losing money. Many firms would not be able to simply absorb the cost of hiring legal help, and many would face significant financial difficulty if ordered to pay compensation.
Computer contractor professional indemnity cover is available for straightforward premiums and can provide protection for legal action and compensation. Although it includes strict limits beyond which an insurer will not pay out, it normally protects against a very wide variety of circumstances. This normally includes allegations a computer contractor has lost an important client’s data or documents, claims they have unintentionally breached confidence or copyright, and even allegations a firm has somehow defamed somebody.
Normally the only conditions are that what has been done has not been deliberate, i.e. that it is not malicious. This means deliberate mistakes which were aimed to damage somebody will not be protected against, unsurprisingly. But if a claim is approved then the policyholder can simply expect their legal fees and compensation connected with the case to be paid for by the insurance company, up to the policy limit which they set at the start of the cover.
Computer contractor professional indemnity cover can even include retroactive protection – meaning the policyholder can guard against claims which arrive in the future which date so far back they refer to something which happened even before the cover was purchased. Similarly, run-off cover can guard someone for a period of time after they have stopped trading or simply moved to a new job, meaning potentially vulnerable time periods can be protected.
Whether your specialist area is internet marketing, hardware and networks, or data storage and distribution, the work of a computer contractor can be extremely useful to businesses who do not have the necessary skills in-house. But knowledge and organisation are typically not enough for many businesses, and it can be sensible to have a few other things in place to run in the background. Computer contractor PII is one option, as it can provide valuable protection in the event that you ever faced a legal claim.
Standing for professional indemnity insurance, PII is popular with many experts and companies which provide professional advice on a consultancy basis. In summary, it pays out towards your legal defence and even any compensation that might be awarded against you should a client accuse you of doing a poor job and losing their money.
Legal claims often arise because someone feels they have suffered what is known as a financial injury, because of something someone has done or failed to do. Computer contractor PII normally protects against claims from clients that you have made an omission, error, or even committed an act of negligence. Other circumstances in which this kind of cover will pay out typically include allegations of breach of confidence or copyright, claims you have committed defamation through libel, and even the dishonesty of any employees you may have.
Many of these situations will require hired legal advice, which can be expensive. The PII element would pay out for the cost of your legal defence and advice, and even any court order which saw you ordered to pay money to a claimant who is successful.
While the prospect of facing a legal case is not guaranteed, if it does happen to a business it can be extremely damaging for a variety of reasons. It can take up a considerable amount of time to organise, and depending on the detail and type of the case, it may drag on for months or even years. This is why many professionals have found it is vital to have a form of professional cover in place which can pay for the legal costs.
One of the key benefits of this type of cover is that it does not matter what level of court your case reaches. Provided you are still within the clear policy limit, you will still get your protection whether you are at an initial hearing or have ended up at the High Court.
The policy limit is particularly important because it is often set by the policyholder at the start of the cover. Beyond this point an insurance company will not pay out any more towards legal bills or compensation, so its important to select something which is right for the business.
Computer contractor PII can also include public liability insurance, protecting you in the event you face a claim from a third party, such as a member of the public, following an incident either on your own premises or in the public domain off site.