Finding management consultants professional indemnity insurance

It has to be acknowledged that management consultants professional indemnity insurance isn’t a description that trips lightly off the tongue! Yet the name is far more complicated that the reality.

The risks of being sued for professional activities

It would be nice to think that we can engage in our professional activities without the need to worry about the threat of legal action but sadly that may be a risky approach.

The reality is that as a management consultant, you work closely with clients and provide them with your advice and guidance to help them in their decision-making and business transformation.

If everything goes well, you typically will look forward to receiving your fees and hopefully, your client’s sincere appreciation for your services.

If things go wrong though, in addition to forgetting the praise, you may also need to anticipate legal action for damages of the generic professional negligence type.

Management consultants professional indemnity insurance may help you cover the potential costs of that possibility.

Risks covered

Typically, this form of protection exists to help with the financial costs you may face from legal actions and court awards arising from accidental or professional negligence. It may be important to note that typically this would not cover instances where you or members of your staff were guilty of intentional acts.

These types of policies may be able to offer you cover for things such as the loss of confidential client documents or data, slander, accidental contraventions of intellectual property rights, late delivery claims, libel and unintentional breaches of contract.

If this sounds to be something akin to overkill, then it might be prudent to remember that courts do not necessarily decide on damages based upon intention – they are more likely to be influenced by the losses sustained by your client. In other words, even if the incident was entirely accidental, you may still find yourself facing a huge compensation bill.

Insurance to help you sleep easy at night

If you’re engaging in professional activities then the cost associated with management consultants professional indemnity insurance may be a small price to pay for having that financial support in place.

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