Protecting your business with management consultants insurance is something that it is sensible to consider for any business owner. This form of professional indemnity insurance is designed to step up and help you in the event that the unexpected happens.
If you run a business, you may think that nothing will ever go wrong – for example, that you will never be sued or accused of negligence. No doubt you take great pride in your work and ensure that your staff do so too.
However, some things are beyond our control and things can, and do, go wrong. Claims may be made against you or an employee for any number of things (eg the loss of sensitive documents; negligence; slander or libel etc) so getting your business protected with insurance for management consultants could be a sensible option.
Different types of cover
Management consultants insurance can be another term for professional indemnity insurance (PII). There are different types of professional indemnity insurance policies available and, often, different levels of cover too, which can help protect you and your business against the financial fallout of a third party claim.
Typically the management consultants insurance policy can help defend a claim against you as well assist with the cost of any damages you become liable for. Having this form of risk management in place in the shape of a professional indemnity insurance policy may help your management consultancy business survive if things get rocky and a client sues you or one of your employees for damages.
This may potentially help keep your business running where it otherwise may fail.
Where to buy PI insurance?
So, where do you look for a suitable consultancy insurance policy? The good news is that getting covered can often be quick and easy if you go to a specialist provider rather than trying to go for a one size fits all PII type of policy that a traditional or mainstream insurer may offer.
Buying it from a specialist PII insurance provider who has expertise within your particular sector may help you find the most suitable cover to protect your livelihood – and your reputation.
You need to choose your management consultants insurance with care, and that is why business people like you may want to seek out a reputable provider.
IT consultants insurance can typically provide your business with invaluable financial protection against claims from third parties who believe that you have done something that it is detrimental to them or their business.
A typical IT consultants insurance policy provides cover against claims for such things as third party injury; negligence; loss of data or documents etc. Sometimes known as professional indemnity insurance (PII) (with public liability cover often included or added on), this business insurance helps provides protection in respect of any legal liability claim against your livelihood by assisting financially with court cases, legal defence and awards for damages – subject to your claim being satisfactorily accepted of course.
When choosing IT consultants insurance, there are a number of considerations that you need to take in to account:
- do note that as with most insurance policies, in the event of a claim, generally you will be liable to pay an excess on your policy. Ensure you know what this is;
- ensure that your policy covers all time frames. Often, there may be a delay between an event happening and the subsequent claim against you / your business. So, if you are in the middle of changing insurers or getting a new IT consultants insurance policy, ask your new provider if they will accept new claims for prior incidents. This is often known as retroactive cover;
- there are many PII policies offering different levels of cover, so ensure that you have an ample amount of protection. Do be realistic as to the amount of IT consultants insurance needed. Being under insured is almost as bad as not having insurance at all;
- policy features and benefits of an insurance policy will invariably differ depending on the insurance for IT consultant providers. Ensure that you check them to confirm the pertinent points of the IT consultants cover.
Of course, it’s not just about getting the most suitable insurance for IT consultants cover – there may be ways that you can help minimise the risk of someone making a claim against you. Common sense things, such as documenting expectations beforehand, (eg responsibilities, deadlines etc) may mean you can manage the workload and the relationship before any problems arise.
IT consultants insurance should be considered by anyone who runs a business as the benefits offered in the face of a claim may prove invaluable.
No matter how good you are at your job and how well you run your company, sometimes things go wrong. Then, you may be faced with a claim against you – with the knock on effect that your business may face financial ruin. That is why IT contractors insurance could be worth considering.
If you run a business, whether you are the sole employee-owner or you have staff, it can still make sense to ensure that you protect yourself against the unexpected. These sorts of unexpected things could include claims against you or an employee for perceived negligence; the loss of sensitive documents or data; plus other events that can crop up as result of you going about your business.
Certainly, in today’s litigious society, having some form of professional indemnity insurance (PI insurance or PII) in place could be a sensible idea.
Things can go wrong
You may think “it’ll never happen to me, my customers are always happy with what I do for them”. However, claims can be made against your business – such as where your customer suffers some form of loss because of actions – or lack of actions – carried out by you or an employee.
And if a claim is made against you, unless you have deep pockets to cover the cost of legal defence as well as potentially any compensation you may be ordered to pay, then your business will have to pay up.
You could then potentially face paying out a five or even six figure sum, as well as having your reputation tarnished.
The good news is that IT contractors insurance may typically help pay for the cost of defending you against any claims made against your business, as well as damages.
And insurance for IT contractors can not only help protect you financially, but can also help keep the reputation of your business intact.
What sort of cover can it provide?
The policy features and benefits of IT contractors cover will vary depending on the provider, but a typical policy may provide you with protection against claims for such things as:
- accidental breach of confidentiality;
- loss of data or documents;
- product liability;
- libel & slander;
- unintentional infringement of intellectual property rights
Getting a suitable deal
If you are considering IT contractors insurance, then you need to make sure that you purchase it from the right place. Specialist providers of professional indemnity (professional liability) insurance will typically have unlimited expertise in the sector. This often means that they can give you access to suitable cover, helping you protect your business properly.
Protecting yourself and your livelihood does not have to be a time consuming exercise. By using a specialist provider of IT contractors insurance, they can help you find the most suitable PII solution for your business.
Professional indemnity insurance is something that may be worth considering. You may also hear it called PI insurance or even PII.
If you run a business, you may think that nothing will ever go wrong – for example, you will never be sued or accused of negligence. However, some things are beyond our control and things may sometimes go wrong.
PI insurance typically provides your business with protection in respect of any legal liability which arises out of the exercise and conduct of the business. Having that peace of mind can leave you free to concentrate on running your business.
With some professions, PI insurance can be legal requirement of some trade bodies. Whether it is obligatory or not to your business, it is important that you choose the right PII policy with which to protect your company.
Levels of protection
There are different types of professional indemnity insurance – some may specifically be tailored to meet the needs of your particular industry – and, often, different levels of cover too. These can help protect you and your business against the financial fallout of a claim.
Consider this – would your business survive if it was faced with a claim of negligence against it? One claim could cost you a substantial financial sum and, in the worse case, even bring your company to its knees. But having the financial protection of this insurance in place may help stop this.
A professional indemnity insurance policy may help take away the stress that a lawsuit against you would cause and provide financial assistance with legal and compensation costs.
The cost of cover
You may feel that PII is an expensive, unnecessary overhead. However, it may be worth seriously considering professional indemnity insurance as it need not cost a lot – unless it is a legal requirement of the trade you are in, in which case, shopping around for the most suitable deal regularly may be an option.
If you are considering this insurance, then you need to ensure that you buy it from the right place. Specialist providers of professional indemnity insurance often can offer tailor made policy options so that you to get the protection required.
What is management consultants professional indemnity insurance? Also known as PI insurance or PII, this protects companies offering advice or consultancy services. In some industries, having professional indemnity insurance will often form part of a contract between a supplier and the client in order to protect both parties against financial loss that occurs as a result of error or omission.
This may typically include things like:
- a negligent act;
- libel and slander that is unintentional;
- infringement of intellectual property rights that is unintentional;
- loss of documents or data;
- unintentional breach of confidence or misuse of information.
These are all things that can happen, even to the savviest of business people with the best staff. And if you or your management consultants company is sued for damages as a result of one of these things, then:
- your reputation could be destroyed;
- unless you have PI insurance in place, you will have to pay for the costs of defending yourself and any awards made to the other party.
Management consultants professional indemnity insurance can typically help your business at times like this by providing assistance so that you do not lose out financially. (Of course, there is usually a pre-agreed excess that you will be liable to pay and limits to claim amounts). The alternative – funding the costs yourself – could see you seriously deplete your firm’s financial reserves or even see it go under.
The FSA definition of professional indemnity insurance
The independent non-governmental body the Financial Services Authority (often referred to as the FSA) defines professional indemnity insurance as “a liability insurance that covers businesses in the event that a third party claims to have suffered a loss as a result of professional negligence”. In layman’s terms, this means that the management consultants professional indemnity insurance can typically step in and cover at least some of any financial losses incurred by a company – subject to the claim being accepted by the insurer of course.
As with all insurance policies, management consultants professional indemnity insurance policy benefits and features can vary depending on who you buy your cover from, so do check the small print so that you fully understand what the PII cover provides. If you have any doubts, contact your provider.