Management Consultant Indemnity Insurance Professional

October 29, 2008 · Filed Under Management Consultant Indemnity Insurance Professional 

Providing advice for a living can be a rewarding and satisfying experience. A management consultant, employed to give training and tips to businesses and organisations, can help improve efficiency and ultimately sharpen a client’s financial performance. Mistakes are usually rare, but can happen despite all the preparation in the world. Unfortunately should a piece of erroneous advice lead to a client losing money, a consultant could face a legal claim. Thankfully, insurance policies exist to cover such circumstances. Cover is usually arranged through a  management consultant indemnity insurance professional.

Management consultant indemnity insurance applies to a legal case brought against a consultant which alleges they caused a client financial injury through negligence or error. It is designed to cover the legal cost of defending such an action. In some cases, legal bills can run to thousands of pounds or more. A company without cover could even face closure thanks to such a financial burden. Professional indemnity insurance is designed to relieve this pressure and allow a self-employed consultant or business to continue providing a full service while effectively defending a case.

A management consultant indemnity insurance professional will usually be able to organise a policy which also provides protection should a consultant face a legal claim that they have committed unintentional defamation through libel or slander. Cover typically also includes protection should a consultant lose or damage important business documents entrusted to them in the course of their work.

A policy will also cover other potential legal pitfalls such as an accusation of breach of copyright or confidence. Public liability insurance may also be part of the deal if required. In general, a professional indemnity insurance policy is designed to protect a management consultant against most of the more common legal threats, although the chances of being sued remain modest.

A management consultant indemnity insurance professional can therefore help provide effective peace of mind for a professional and deliver a policy which will help a firm or individual keep going, even in circumstances that would spell serious trouble for other companies. All a consultant has to do is decide what level of cover they need and pay the subsequent premium.

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