Guarding your business with management consultant indemnity insurance
Working as a management consultant can be a challenging business. A professional may be relied on by a company to deliver fast and visible results. Whether in charge of a small section of a firm or a whole division, the consultant is expected to have an impact and earn their fee. Even if delivering a short training session, a consultant will be expected to demonstrate that they have been worth hiring. In most cases clients are happy and an assignment can be considered a success. But occasionally ugly disputes can arise, sometimes turning into legal challenges. This means some people operating in the sector take out management consultant indemnity insurance as a precaution.
This is a type of cover which will protect an individual or entire company should they be accused of making an avoidable error, omission or committing an act of negligence. Everyone makes mistakes, but in a professional environment they can cost money and lose a client profit. Some may therefore be inclined to pursue a legal case in an effort to get compensation.
Some cases are settled out of court, negotiated amicably, or are simply sorted out with a little diplomacy. But if the error is significant enough a lawyer’s letter can arrive, followed by a court case. Management consultant indemnity insurance will pay for a policyholder’s legal bills while they defend a case, potentially saving them thousands of pounds or more.
Most policies will also provide money for solicitors help right the way through the court system to the conclusion of the case, although most products have certain limits attached. This means an insurer will not pay out an indefinite amount towards legal help. Levels of cover are available on a sliding scale, so a smaller company can opt for a lower ceiling of protection, leading to a premium which better matches their resources.
The cost of management consultant indemnity Insurance can also be altered by changing the excess on a policy and this works in much the same way as a house or car insurance policy works. When looking for cover, it can also help to look carefully at what is included in any policy you are interested in. Some insurers will include protection for unintentional defamation accusations, allegations of breaches of confidence or copyright, and will even throw in public liability insurance in some cases.
Management consultant indemnity insurance can also be arranged to to continue after a consultant retires or changes jobs and goes into a different profession. This is known as ‘run off’ cover, and will protect someone against any claims which arrive relating to something which happened some time ago. Retroactive cover is another extension of a policy which will cover a company for any past claims which arrive in relation to something which happened before a policy was bought.
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