Avoid the potential for legal bills with interim manager professional indemnity cover
As the financial climate darkens, some companies may feel they need outside help in order to make it comfortably through the bad times. Others may already be in trouble and be looking for an extra pair of hands to get their employees back on track. An interim manager can therefore expect to be busy in times of financial uncertainty. Some people may be tempted to go into the business because of their past expertise, but it is important to be aware of some of the legal risks, and some people take out interim manager professional indemnity cover as a precaution.
This is a type of insurance which applies if someone makes a mistake, omission, or commits an act of negligence. Many companies will not hesitate to instigate legal proceedings if an interim manager they have hired gives bad advice, or makes a recommendation which ends in them losing money.
A firm might hire an interim manager to train a group of employees in how to drum up new business. If after the manager leaves, their advice proved unpopular and unsuccessful with workers, the company could lose money and be minded to sue for what is known as a financial injury.
If such a circumstance arose, a professional with interim manager professional insurance would be able to get their insurer to pay for the legal costs of defending the claim. Subject to certain limits, the cover company will essentially pick up the tab for the legal help you need, and will even pay towards compensation which may be awarded.
Different levels of cover are typically available, and here it is important to choose what is right for you. Say, for example that an interim manager has protection for £100,000 of legal bills, but has to fight a case which costs £120,000 to defend, they must pick up the remaining £20,000. This is known as being under-insured.
Interim manager professional indemnity cover could save a business in the right circumstances, particularly if they have to fight a long and complicated case. Policies typically include some handy extras like protection against defamation, breach of confidence or copyright, and the loss of a client’s documents. This is why many people turn to this sector of the insurance industry to ensure they need not overly worry about legal bills if they are ever faced with a serious allegation.
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