How security consultant professional indemnity acts as your own financial protection system
Legal issues are often misunderstood and many businesses may not fully appreciate what the risks are when it comes to the chances of being sued. Security consultants may be better briefed and know the consequences of failing to properly protect a client and fill their requirements. Property and people may be a risk, meaning an error can lead to someone losing money or worse still saying a lax procedure or system has led to someone getting hurt. Security consultant professional indemnity cover is an insurance policy which would guard your business by paying legal bills if you are ever accused of making such an error. You may think that it is unlikely, but when they do happen legal disputes can be expensive.
For example, a consultancy might be hired by a relatively new company to recommend how best to protect their new premises against the chances of being broken into. You may set up a CCTV system for them and even recommend a series of door locks. Should that CCTV system later fail due to a wrong installation, the client could take legal action if they find their insurance was invalid after a theft.
This is why security consultant professional indemnity cover is important as being sued can lead to a compensation order against you. In the worst cases this can involve thousands of pounds of pay out and court appearances. You may need to hire legal help, and this is what indemnity cover pays for. In simple terms it pays your legal costs up to set policy limits, and even the cost of compensation which may be awarded against you.
Besides simple mistakes, a security consultant will also be protected against claims that they have breached confidentiality or copyright. It also guards against defamation claims, allegations that a firm’s employees have acted dishonestly, and will even cover you if you are facing action because you have lost or stolen someone’s important data.
Security consultant professional indemnity cover can therefore provide your own safety net against the threat of legal action. It can even be tailored to cover you if you get a lawyer’s letter announcing a legal action in future which relates to something which is so historical it happened before you even bought the cover, known as retroactive protection.
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