How security consultant professional indemnity cover protects against legal claims
Businesses can take a all sorts of measures to minimize risks, from detailed and effective health and safety precautions, to saving up cash for when times are tight. A security consultancy needs to provide a top notch service to clients while also keeping an eye on its own stability, and security consultant professional indemnity cover can be a cost effective and valuable way of protecting against unwanted surprises.
This is a type of insurance which will protect your business if it ever faces a legal claim following a mistake or omission. In simple terms it pays your legal costs, meaning you do not have to spend thousands of pounds on hiring a legal team if you ever face the prospect of being sued.
This is important as a lot can be at stake on certain jobs, particularly if you specialise in making sure business premises are secure and well protected. One slip up can lead to a breach, possibly meaning a client loses a considerable amount of money and could even end up out of business for short periods. If they think you’re to blame for this, they may mount a legal challenge to recover their costs.
In such circumstances a security consultant professional indemnity cover policy would kick in and pay not just the costs of hiring legal help, but also meet any bills which are run up paying compensation to the client if their claim is successful.
A policy covers acts of negligence and general mistakes, but also normally covers for things like breach of confidentiality or copyright, and will even guard you in the event you faced a legal claim that one of your employees has acted dishonestly.
You will need to select the level of cover appropriate to your firm, as security consultant professional indemnity cover will not pay out costs or compensation indefinitely. So you might want protection for tens of thousands, hundreds of thousands or even millions of pounds. Think about time frames too – options normally include ‘retroactive’ protection for claims which arrive in future but which date back to an event which occurred before you bought the policy. Run-off cover is also used as a buffer zone as you change insurer or your job, so there is no period when you are vulnerable to an historical claim.
Comments
Leave a Reply