Interim manager professional insurance explained
In more uncertain financial times, more companies may find themselves in serious difficulty and acquire outside help in order to get back on a sure footing. Some may be more inclined to hire a professional consultant to provide advice about how they can fix problems and turn their fortunes around. An interim manager may be taken on to either look at one section of a company or simply all of it. Although most contracts pass satisfactorily and without incident, mistakes can sometimes be made which means interim manager professional insurance may be necessary for freelancers and firms operating in the sector.
This type of cover will often include professional indemnity insurance and public liability cover. It is available both for individual sole traders and larger companies providing management advice. The idea is to cover a policyholder if they face a legal claim from an unhappy client as a result of a mistake they have made, actual or perceived.
For example, the sales team of a particular firm may be going through a difficult time and be failing to drum up business. The firm in question may hire an interim manager to take charge of the team for a short period and pass on new knowledge and skills. If the process is unsuccessful, the consultant may rightly or wrongly get the blame, and some firms could seek financial compensation through a court case.
Interim manager professional insurance which includes indemnity cover will pay the legal costs of defending such an action. Limits and excesses will usually apply, but the protection will last all the way through the court process right up until the high court if necessary. It will even pay compensation if it is awarded in the event of a successful claim.
A policy will also provide someone with cover if they face a copyright or defamation claim or even a breach of confidence action. If an interim manager consultancy has a number of employees, the business will also be covered if one of those workers commits an act of dishonesty while on a job. With premiums typically flexible, interim manager professional insurance could be a serious consideration for anyone who provides this type of specialised advice.
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