Management consultants insurance

October 27, 2008 · Filed Under Management Consultant Insurance 

A management consultant may be called on to provide a client with a variety of services. These can involve anything from sorting out specific business problems to using coaching techniques to improve the skills of key figures in a firm. They may operate as a self-employed freelance or as part of a company. Either way, they are usually hired to give specialist advice which is likely to be trusted and relied on by a client. But should a mistake be made resulting in a client suffering a financial loss, a consultant can end up on the wrong end of a legal claim. This is where management consultants insurance can play a vital role.

Management consultants insurance will step in if a specialist is accused of making an error or acting negligently and faces a court case. Defending such cases, even successfully, can be an expensive proposition. Management consultants insurance which involves professional indemnity insurance will step in and pay legal bills which are run up during such cases. This can relieve the stress and anxiety associated with being tied up in a court case, allowing a consultant to continue providing a top service to other clients.

A policy which incorporates professional indemnity cover will usually also provide protection in the form of public liability insurance and cover if the person or business is sued for libel or slander having committed unintentional defamation. A management consultant can often be entrusted with vital documents or data from a company. If these are lost or damaged, resulting in a case, cover will also be provided here. Other possible pitfalls including unintentional breach of confidence or copyright will usually also be covered.

Some consultants will have been trading for a while but only just got around to sorting out insurance or will be concerned about what happens to their protection when they change jobs or retire. In these cases some policies can cater for historical claims and even a legal action related to an event which took place before the policy was purchased. Management consultants insurance therefore allows a professional to carry out the best possible job without fear of what would happen in the unlikely event they are sued by a client.

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