How management consultants insurance may help

August 18, 2010 · Filed Under Management Consultant Insurance 

Your role as a management consultant may vary. One day you may be working with a very small firm and the next a multi-national company. The tasks you do typically vary too. You may carry out data collection, research and give advice. Your actions however may put you at financial risk sometimes and this is where management consultants insurance may help.

What is insurance for management consultants?
Typically, when working as a management consultant you may be handling data that is sensitive. Inadvertently you may do something that causes data loss. If so your client may take you to court. This might end up costing you a great deal of money and insurance typically helps towards the costs, up to a pre-defined limit. A typical management consultants insurance policy may provide cover for such as:

  • a breach of your client’s confidentiality that occurred accidentally;
  • losing any documents or data of your client;
  • liability for products in the event that they caused injury to;
  • infringement of intellectual property rights that was unintentional;
  • defamation or dishonesty on your part;
  • public liability insurance may be included. (However, do note that with some insurance providers this has to be taken out for an additional cost).

You may wish to consider insurance when you stop to think that part of your job as a management consultant may include:

  • preparing proposals or presentations;
  • working at the client’s site;
  • offering solutions and recommendations;
  • managing projects of your clients;
  • assisting clients.

While you may be very careful in your work and do everything by the book it is possible that a slip up may occur. If you are taken to court by a client, potentially the fees and court costs may be large. In some cases you may be unable to find the costs and this may mean the end of your business. Having adequate insurance in place may make a difference.

Of course as with any type of protection, including management consultants insurance, what you get for your money may differ depending on the insurance provider. Always check out the small print and terms of the policy before purchasing to ensure that you know what the indemnity insurance may cover as well as any potential exclusions and limitations.

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