Elements of management consultant professional indemnity cover
Consultants big and small provide a valuable service their clients, using specialist knowledge to make recommendations about how they run their business or train their staff. Management consultants can even be asked to make recommendations about how the hierarchy of a company works or how they should run certain sections of it in future. Occasionally they can have the future of a company in part in their hands, and their advice is likely to be taken seriously as they are seen as an expert in their field. While this all makes a business viable, it also means management consultant professional indemnity is a type of cover which anyone operating in the sector might want to consider.
Professional indemnity insurance or PII, is a straightforward type of cover policy which will pay your legal fees in the event you are formally accused of making a mistake in your day to day business or role. It protects consultancy firms and individuals as appropriate, and normally applies if someone is effectively sued because they have been accused of making a mistake, omission, or even committing an act of negligence.
Management consultant professional indemnity pays the legal bills run up defending such an action, as even completely invalid claims will have to be defended if they are lodged formally. Cases can sometimes run on for months or even years depending on their complexity and the nature of the complaint. If your defence fails, the complainant may be awarded compensation, and professional indemnity insurance will even pay this out for you. It also does not matter what level of court your case reaches. Provided you are still within the policy limit, for example, a policy would pay out for your legal defence even if your case ended up being heard in the high court.
It is important to note that an indemnity policy will not pay out indefinitely and there will be a limit to it. You will need to decide this and select what is right for your business. Too small a level and you could end up being under insured and picking up the cost of any legal expenses at the back end of a case. If you decide a ceiling which is too high, you could end up with a premium which is too expensive for a level of protection you do not need. Insurance companies can help you decide and it can help to look at the size of your clients and typical contracts agreed with them.
Management consultant professional indemnity can also protect you against claims that you have breached confidence or copyright or even if one of your employees has acted dishonestly if this applies. Some insurance companies will even throw in public liability insurance as an extra. Therefore it is possible to protect your business against a range of legal eventualities for an effective cost.
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