Management consultants professional indemnity insurance explained

December 26, 2009 · Filed Under Management Consultant Professional Indemnity Insurance 

Perhaps you have heard of management consultants professional indemnity insurance and wondered if it is worthwhile?

The risks you face

Did you know:

• that a client could sue you if you provided professional advice that subsequently proved to be materially inaccurate and which caused them losses as a result?
• you could be held accountable and sued for damages if you accidentally release confidential information belonging to a client into the public domain?
• that a third party could sue you if you accidentally use materials that are their intellectual property right without their permission?
• you may easily be sued for libel, slander or defamation of character, if your verbal or written observations that are critical of others are leaked to the parties concerned?
• that someone accidentally injured as a result of your activities (e.g. a collapsing chair in your office or tripping over your equipment) could sue you for damages under the provisions of ‘public liability’?

However unlikely you believe these events may be, in reality something like this or similar happen. And then you could end up in Court. Courts have little sympathy for excuses along the lines of “it was unintentional” and may make punitive financial awards against you based upon their perception of the damage suffered by the other party.

Management consultants professional indemnity insurance

Professional indemnity insurance coupled with public liability insurance is designed to protect you from the financial consequences of the above risks.

The amount of cover is variable depending upon your requirements and, of course, the higher the level of cover required, typically the more expensive the premium will be.

Deciding what level of cover you may realistically require will vary depending upon the nature of your business and to some extent, the extent to which you are prepared to live with risk.

Guessing is typically not a good idea. There are specialist providers of professional indemnity insurance offering their products over the Internet. Their sites typically offer a wealth of information and the opportunities to obtain fast quotations.

So, if you don’t like running your business on a day-to-day basis hoping that you ‘stay lucky’, finding out more about management consultants professional indemnity insurance may be a sensible move.

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