Do you need Management consultant employer liability cover?
As a business changes its needs often change, and this can apply to the administrative side of a firm as well, including the insurance it needs to have in place. Management consultants may often start out as a sole trader, effectively operating as a lone freelance, before developing a business and requiring employees. This may mean that their responsibilities change, and they may need to take out management consultant employer liability cover.
Employers liability insurance will cover a business in the effect they face action after an employee is injured at work or falls ill. Essentially anyone who employs people has to take out this kind of cover, with a handful of exceptions including if somebody is a management consultant who is the sole employee of a company which is limited and owns a minimum of 50 per cent of the company.
However, if somebody is a sole trader who sometimes uses temporary staff, they will have to take out cover. Those who have a number of full-time employees would definitely have to have this kind of insurance in place.
Management consultant employer liability cover will pay for the cost of any compensation which is awarded against the policyholder in the event an employee is injured or falls ill due to their work. Normally it will cover somebody whether or not the related incident happens on or off site.
Protection is different to public liability insurance, which will protect a business against claims from third parties, i.e. members of the public, who might be injured as a result of the work of the business.
As with other types of professional insurance, there will be a limit to the amount of protection someone can get, i.e. a maximum amount beyond which the cover will not pay out any more for legal fees or compensation. Anyone who has to take out employers liability insurance will have to have a policy limit of a minimum of five million pounds. Legal requirements also say that after somebody has got their insurance in place, they need to display it clearly where workers can see it.
Many insurance firms specialise in management consultant employer liability protection, and may be able to offer this and a number of other insurance policies including public liability and professional indemnity. To get a quote somebody will have to contact a potential provider and tell them a bit about their business and why they need the insurance. The nature of someone’s work may dictate the cost of the premium, as of course will the top policy limit.
Some insurance requirements are a simple fact of running a business but thankfully there is a competitive market for management consultant employer liability cover which means firms of most shapes and sizes will be able to get a deal which not only adequately protects them but which is within their financial means.
http://www.bytestart.co.uk/content/20/20_3/employers-liability-insurance.shtml
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