If you run a management consultancy business, you may think that nothing will ever go wrong – for example, you will never be sued; an employee will never act dishonestly; or you will never be accused of negligence. However, some things are beyond our control and things can, and do, go wrong. Management consultants professional indemnity insurance is designed to help protect you and your livelihood in circumstances such as this by protecting your business in respect of any legal liability which arises out of its exercise and conduct.
What are its benefits?
There are different types of professional indemnity insurance (PI insurance) and, often, different levels of cover too, which can help protect you and your business against the financial fallout of a claim being made against you (this may include any legal defence costs and help with damages awarded to the third party – up to the policy limits of course).
What to look for when buying cover
As highlighted above, there can be differing levels of cover depending on the PI insurance policy you buy including whether it is trade-specific (eg insurance for management consultants).
Things to look out for when comparing management consultants professional indemnity insurance may include:
- checking how much any excess would be in the event of a claim. Most professional indemnity policies will have an excess if you make a claim;
- the sum insured (ie the amount of cover you have) is of great importance as being under insured means you will have greater financial responsibility should a claim be made against you. Some of your clients may insist that you have a minimum sum insured in order to provide them a service, so do check;
- ensuring that your policy covers all time frames. Often, there may be a delay between an event and the subsequent claim. For example, if you are in the middle of changing insurers, ask your new PI insurance provider if they will accept new claims for prior incidents. This is often known as retroactive period;
- finally, remember when comparing policies that the terms and conditions of the insurance can differ depending on the providers. Therefore, always ensure that you check them to confirm the pertinent points of the insurance.
Having the peace of mind that you have management consultants professional indemnity insurance in place can help you focus on the most important thing – running your business.
If you are a management consultant, then your business typically involves, among many other things, giving advice to other your clients. These people rely on your expertise to help them make key business decisions. However, there may be times when your client may feel that you have mis-advised them or something that you have done impinges negatively on their business. Because of this, management consultants insurance – which is a profession-specific form of professional indemnity insurance – can be useful in helping protect you, your clients and your reputation.
Anyone who owns a business, whether they are the sole employee or they have several or even hundreds of staff – runs the risk of having a claim made against them. Things can happen, such as the loss of sensitive documents; negligence; defamation; incorrect advice; even third party injury – these are difficulties that any business could encounter at any time. This is where professional indemnity insurance (PI insurance) can step in and help.
Certainly, it doesn’t matter how well run your business is, sadly things can wrong. And that is why considering insurance for management consultants can make sense.
Getting suitable cover
There are a number of providers of PI insurance, so it may be good to shop around and compare PI insurance policies. Also, when looking for cover, it is important that you use a specialist provider of professional indemnity insurance rather than getting a management consultants insurance quote from a traditional insurer who may not have access to the specific cover you need to protect your business.
A specialist professional indemnity insurance provider can draw on their expertise within the PI sector, to help you access protection that meets your requirements. They will often be able to offer tailor made insurance so that you get exactly the level of protection you need (for example, they may include or add-on public liability insurance in order to widen your range of cover).
Always check that the cover will give you the right protection by looking at things such as the amount insured any policy excesses; exclusions; and any other relevant points of the management consultants insurance policy.
If you are an IT contractor, IT trainer or IT consultant, then it may make sense to protect your reputation and your business with professional indemnity insurance. You can get trade-specific professional indemnity insurance – IT contractors insurance – which will help protect you in the event that problems arise due to work carried out by you / or due to advice you have given to a client.
IT contractors insurance can also help you in the event of something else going wrong between you and client. However, do note that policy terms and conditions can vary among professional indemnity insurance providers, so you need to check your cover to make sure you have the protection your business needs. What is standard within one policy may not be with another.
Following is a snapshot of just some of the cover a typical insurance for IT contractors policy may provide:
- loss documents or data;
- accidental breach of confidentiality;
- libel and slander;
- the supply of deliverables;
- unintentional breach of contract.
Professional liability cover can be crucial for your business. Certainly, should the worst happen and a claim is made against your company for one of the sort of situations listed above, then you may find yourself having to dig deep in to your pockets in order to pay for any loss or damages awarded to the claimant – plus your legal defence costs too.
This could run in to thousands and thousands of pounds – money you’d have to find yourself. Substantial costs may wipe out your business, depending on the sum awarded and how profitable your enterprise is.
So, investing in protecting yourself and your business against the ramification of such claims can make sense. In fact, you may find that some clients may only work with you if you have IT contractors professional indemnity insurance in force, as this protects them too.
Surprisingly, for the cover that a professional indemnity insurance policy could offer you, premiums may often be realistic.
Getting covered with an IT contractors insurance policy can give your business financial protection. And by using the services of a specialist provider, you will often be able to access a suitable deal at a suitable price.
IT consultants insurance is a trade-specific professional indemnity insurance policy. Professional indemnity insurance (PI insurance) is something that many businesses will have, whether through choice or because it is mandatory to their profession (such as if you are an accountant). This insurance can give you peace of mind that should something go wrong and you are sued by a client, your business finances (and hopefully your reputation) will remain intact.
IT consultants insurance can generally provide cover against unsavoury situations that may occur such as accidental breach of confidentiality; defamation; libel; slander; dishonesty of an employee; loss of data or documents; unintentional infringement of intellectual property rights; wrong advice etc.
Public liability insurance may also form part of a PI insurance package or can often be purchased as an add-on to enhance your company’s protection.
Why do I need it?
Something as everyday as you providing consulting work on a computer system that then all goes horribly wrong may see your client sue you for damages. Not only will a court case be stressful, but your reputation and your business finances could be seriously compromised if your client is awarded damages.
This is where IT consultants insurance may be able to help, typically by paying towards the costs of defending you against any allegations made against your company, as well as any damages that are awarded.
In a nutshell, the policy can help defend a claim against you as well as cover you for any costs you become liable for. Certainly, having this form of risk management in place in the shape of a professional indemnity insurance policy may help your business survive if things get rocky and a client sues you or your business.
As mentioned in the opening paragraph, in some professions, professional indemnity insurance is mandatory. You may also find that some clients will only work with you if you can show that you have a PI insurance policy in place. This gives them protection that, should they need to sue you, they know they stand a chance of getting any costs awarded, if their claim is successful!
It can be a dog-eat-dog world out there and society seems to be more litigious than ever. Protecting yourself with IT consultants insurance may be something worth considering.
If you run your own company then the benefits of professional indemnity insurance (PI insurance) should be seriously thought about. This cover can help protect your company against unexpected financial loss due to a claim made against it.
In some professions (such as accounting), professional indemnity cover is a compulsory requirement for all members in practice and can typically provide cover for their statutory and contractual obligations.
You may also find that some clients will only work with you if you have evidence of cover – this protects you and them in the event of a claim.
What it does
Minimising any financial loss is the key to professional indemnity insurance. It can help your business survive if something goes wrong. Keeping your business running with as little disruption as possible as well as minimising any financial loss may be achieved with professional indemnity insurance.
And usually, even the self employed can benefit from the financial protection offered by professional indemnity cover.
A claim can be made against your business where your customer suffers some form of loss because of actions – or lack of actions – on your part or that of an employee. Unintentional mistakes can and do happen even to the best of managed businesses, and yours is no different. The cover will typically help pay for the cost of defending you against any allegations made against your company, as well as damages. There will of course be limits as to how much you can claim.
Public liability insurance and sometimes employers’ liability insurance may also be part of your PI insurance package or can often be bolted on, potentially giving you all-round protection.
PI insurance quotes
Getting covered can be easy. It is important that you consider buying the cover from a specialist provider of professional indemnity insurance. Buying it from someone who has expertise within your particular sector can help you find the right product, rather than trying to go for a one-size-fits-all type of policy that a traditional or mainstream insurer may offer.
It makes sense to shop around and get a professional indemnity insurance quote – why pay more for it than you have to? This insurance offers a wide range of benefits, protecting you against the financial distress caused by third party claims made against your business, but there are competitively-priced options available in the market place, so take advantage of them!