How an Interim Manager Professional indemnity cover policy works
Ending up with a massive legal bill after a long and expensive defence of a compensation claim is the nightmare of many businesses. It can bring some smaller firms to their knees, so many choose to take out forms of insurance which can help protect them against this risk. Working as an interim manager often involves taking on a large amount of corporate responsibility, meaning there is a chance you may face a court case if something goes wrong. Interim manager professional indemnity cover will pay your legal costs if you ever face a claim after a mistake.
This insurance will normally also apply if you make an omission during your regular work, or if you commit an act of negligence. Some companies will not hesitate to take legal action if they feel you have done a job far below what they are expecting. Even worse, you may give them advice which ends in them losing money.
For example, a company might hire an interim manager to help employees improve their efficiency. If the advice proves wrong and actually ends up making them less efficient, the firm may feel they have lost out and could sue you for the money they have lost.
Interim manager professional indemnity cover would pay your legal costs, and even any compensation which would be awarded to the claimant if they were successful. Subject to agreed limits, a policy will pay for your defence team all the way through a case.
Different levels of cover are available, from a few thousand pounds up to millions of pounds for larger businesses. The key thing to consider here is that if you take out a cover level which is insufficient, you would end up picking up any difference after the policy hits its limit. This could mean you successfully defend a case but still end up with a bill, meaning selecting what is right for you is very important.
Interim manager professional Indemnity cover will normally also protect you against claims of unintentional breach of copyright or confidence, and may include public liability insurance. You will also be guarded against any cases which relate to unintentional defamation. Loss of a client’s documents or data will also normally be covered, meaning almost any legal eventuality you are likely to come across does not need to mean you will also face a financial crisis.
Comments
Leave a Reply