Professional indemnity insurance – are you covered?

August 30, 2010 · Filed Under Professional indemnity insurance · Comments Off 

Any business where you: give advice; work with client data or documents; or work within a client’s premises, may benefit from having the peace of mind offered by professional indemnity insurance (PII or PI insurance).
Policies may differ between providers and there are typically limitations, so when considering a policy you may wish to compare what is offered for the premiums.

Do you need insurance?
If you are a professional, PI insurance may be your lifeline and it might mean the difference between you losing your business and keeping it. When you stop to consider how much legal costs may add up to if a client takes you to court, you may be able to see why insurance may be so valuable to you.

There are some professions where having professional indemnity insurance is compulsory, such as if you are an accountant, broker or solicitor etc.

Do you have thousands of pounds to spare?
Ask yourself where you might get your hands on thousands of pounds if say you were accused of slander. It might be that when you are accused of slander it was a slip up on your part and you in no shape or form meant to damage your client. However the client may not see it this way and the little accidental slip up on your part may potentially end up costing you your business. An insurance policy typically provides insurance against accidental libel and slander cases and often pays towards the costs of being taken to court, subject to a successful claim for costs being made and policy limits.

Looking for an insurance policy
Insurance providers realise that there are numerous types of business and different sizes of business. For example, you may work alone or you may have many people working alongside you in your business. Therefore, with some providers you are able to tailor the insurance policy to the size of your business and your needs. The type of business you are running is also a consideration when looking for professional indemnity insurance.

You may also wish to take into account that some insurance providers offer public liability insurance in with your policy, while others may ask that you add this in for a little more each month in premiums. Public liability insurance protects your business against the possibility of a member of the public making a claim against you for loss or damage caused to them whilst on your premises.

There is typically a limit to the amount that the professional indemnity insurance pays out towards your costs, if a claim has to be made. Check the small print and the terms to find out if the policy provides adequate cover, otherwise potentially you may still have to find a great deal of money towards the costs yourself in the event of a claim.

Management consultants professional indemnity insurance facts

August 23, 2010 · Filed Under management consultant professional indemnity insurance · Comments Off 

Management consultants professional indemnity insurance is specifically aimed at anyone in the management consultant business.

The name of this type of insurance policy may be a bit of a mouthful to say, but management consultants professional indemnity insurance may be a financial lifeline. Designed for businesses, the policy typically protects against the financial fall out of a claim being made against you for such things as negligence or libel and slander.

Court costs may be the death of your business if you have to find the money from your business reserves. This is where the insurance policy comes into its own, if needed.

What is professional indemnity insurance?
Policies may vary among the different insurance providers so therefore it may be in your best interests to check the policy features and benefits and never just assume that what one provider offers is offered by another.
What does an insurance policy typically cover?

Your client may accuse you of libel or slander against them and if the company decides to take you to court, the cost of the case might run into many thousands of pounds. If you do not have insurance, could your business afford to pay for these costs?

Data and documents loss
Management consultants professional indemnity insurance typically may often cover data or document loss of your clients.

When working with clients and their data there is always a risk. If data or documents are lost or are compromised, then, again, a court case may be brought against you.

Wrong advice or recommendations
Typically your job as a management consultant means that you are giving advice and recommendations to clients. If you were to accidentally give the wrong advice and the client lost a lot of money due to making decisions based on the information given by you, potentially a court case may be brought against you. Again if you do not have insurance to rely on you may need to pay the court costs from your pocket.

Management consultants professional indemnity insurance may be worth considering, especially when you compare the often competitively priced cost of it to the amount of money you might have to find yourself if a claim is made against you. A policy may of course cover a great deal more than outlined above and not all insurance providers may offer the same benefits.

How management consultants insurance may help

August 18, 2010 · Filed Under Management Consultant Insurance · Comments Off 

Your role as a management consultant may vary. One day you may be working with a very small firm and the next a multi-national company. The tasks you do typically vary too. You may carry out data collection, research and give advice. Your actions however may put you at financial risk sometimes and this is where management consultants insurance may help.

What is insurance for management consultants?
Typically, when working as a management consultant you may be handling data that is sensitive. Inadvertently you may do something that causes data loss. If so your client may take you to court. This might end up costing you a great deal of money and insurance typically helps towards the costs, up to a pre-defined limit. A typical management consultants insurance policy may provide cover for such as:

  • a breach of your client’s confidentiality that occurred accidentally;
  • losing any documents or data of your client;
  • liability for products in the event that they caused injury to;
  • infringement of intellectual property rights that was unintentional;
  • defamation or dishonesty on your part;
  • public liability insurance may be included. (However, do note that with some insurance providers this has to be taken out for an additional cost).

You may wish to consider insurance when you stop to think that part of your job as a management consultant may include:

  • preparing proposals or presentations;
  • working at the client’s site;
  • offering solutions and recommendations;
  • managing projects of your clients;
  • assisting clients.

While you may be very careful in your work and do everything by the book it is possible that a slip up may occur. If you are taken to court by a client, potentially the fees and court costs may be large. In some cases you may be unable to find the costs and this may mean the end of your business. Having adequate insurance in place may make a difference.

Of course as with any type of protection, including management consultants insurance, what you get for your money may differ depending on the insurance provider. Always check out the small print and terms of the policy before purchasing to ensure that you know what the indemnity insurance may cover as well as any potential exclusions and limitations.

Why take out IT consultants insurance?

August 11, 2010 · Filed Under IT Consultants Insurance · Comments Off 

IT consultants insurance may also known as professional indemnity insurance (PI insurance). This is a form of protection that with most professions you do not have to take out by law, but it may be wise to do so (and some professions will require that you have it in order to practise).

A policy typically gives you insurance against a number of events that may lead to your clients taking you to court. Court costs soon add up, so the insurance is potentially a type of safety net against financial ruin.

Sticking by the rules
Even if you stick to all the rules something may happen that you have no control over. You may lose your client’s data and even though it was an accident, your client may wish to take you to court, especially if this loss of data had some serious ramifications to their business.

The same may happen if you are accused of slander or defamation of character. IT consultants insurance may generally cover accidental situations such as these.

Things to remember when considering insurance
There are some things to remember when you are considering taking out IT consultants insurance. The first of these is that the insurance may not help you if you do something intentionally and you are found guilty in court. In this case you will typically be liable to pay the costs yourself.

Also bear in mind that all insurance policies typically come with terms and conditions, along with exclusions. The exclusions are usually what you cannot claim on your insurance policy for. The limitations generally state how much you may be able to claim, in the event of making a successful claim for one of the events covered in the insurance policy.

If you fail to take out IT consultants insurance and the worst were to happen could you afford to bear the potentially large costs that may be involved? You may even end up losing a great deal more than your credibility; you might lose your business to pay for your mistake.

What is IT contractors insurance?

August 4, 2010 · Filed Under IT contractors insurance · Comments Off 

As an IT contractor you are responsible for many different aspects of your clients and as such you may be a prime target for lawsuits or claims against yourself, or your company. With this in mind anyone who runs a business managing data and advising on the IT matters of others may wish to consider IT contractors insurance. So how might this insurance help you?

Let’s first take a look at some of the many things that your IT contracting company may be faced with.

Your client’s data
Firstly, information technology means you are working with your client’s computers and telecommunications systems which store large amounts of data. If something were to happen to this data such as it falling in to the hands of someone else, and it was in your safekeeping, you might face legal action. If your IT contractors insurance covers data loss, typically you have your insurance policy to help you when it comes to court costs (up to set limits of course).

Accidental breach of confidentiality, libel and slander
The same policy may also provide protection in the event that you breached confidentiality. Again the company or person you are working for may sue you, and without insurance, courts cost, including any awards made to the other party, typically have to come out of your own pocket. These may add up to a large sum, which in the worst case scenario might see you losing your business.

Your clients might also take you to court for libel or slander (if you accidentally wrote or said something about your client that was incorrect and / or which had a negative effect on their business) – again the typical insurance policy for IT contractors may provide financial protection in cases such as this.

Public Liability Issues
Public liability insurance may be included in with your IT contractors insurance, or you may have to pay a little more to purchase it separately. If your contracting job brings you into contact with the public, this insurance may be well worth having. If a member of the public was injured and it was seen to be your fault, a court case may be taken out against you. The insurance can help with the bulk of the associated costs of having a claim made against you, even if it doesn’t cover them all. When taking out the insurance or indeed any insurance, always check the small print of the policy. There are always limitations as to how much the insurance policy pays out in the event of a successful claim.