Whatever your level of expertise and how long your business as a consultant has run for, a form of professional insurance might be something to consider if you would not be able to cover the costs of a legal claim. Although it is often associated with mortgage intermediaries and accountants, professional insurance with an indemnity element is relevant to anyone who provides professional advice. Fuel efficiency consultant professional insurance is a form of this kind of cover specifically tailored to a fuel consultant’s needs.
Some professions need to have an element of professional indemnity cover because regulatory bodies or the law will require it. For example solicitors, architects, and financial advisers typically have protection. But potentially any consultant could find cover useful, as legal action can be expensive.
To summarise, it will pay out in the event you face a legal claim because you have allegedly made a costly mistake, error, or committed an act of negligence in your day to day work. Mistakes can be costly for clients, and some may be minded to recover what they have lost through legal means.
Insurance like this is only active when a policy is fully active and has been paid for. So anyone who is cancelling their deal because they are changing to a new insurer or because they are winding down the business may want to use a ‘run off’ element as part of the policy to ensure they still have protection during a vulnerable period.
To give an example when runoff cover is needed, a professional insurance deal would payout for the legal cost of an action which arrived on a consultant’s door mat relating to a previous job which occurred before they retired or wound up the business three weeks ago. Just because someone is not trading anymore does not mean they cannot be sued, and this is why a period of runoff cover may be necessary.
Fuel efficiency consultant professional insurance deals also often provide protection against allegations that you have defamed someone or accidentally breached their confidentiality or copyright. Note that for the cover to work properly, the actions must have been non deliberate and not malicious, i.e. accidental. One exception to this is an element which provides protection in the event that an agency’s employee or employees are accused of acting dishonestly, perhaps because they are alleged to have stolen from a client, resulting in a legal case.
Fuel efficiency consultant professional insurance would not only cover the cost of legal bills and defending a case but also the compensation which might be awarded against you if the claimant is successful. Protection levels vary as well, and smaller businesses can get payout limits appropriate to their client base and the size of their contracts.
The use of fuel and energy is increasingly important to businesses and homes across the UK and the world. Whereas most companies once consumed fuel with hardly a second thought, more and more are now required to think more carefully, whether it’s because of government legislation or financial considerations. Therefore a fuel efficiency consultant has potentially no shortage of clients, and with the right expert advice can make a huge difference to how a business or organisation manages its energy use and minimises cost. But one wrong recommendation to the client could end in a legal battle, potentially involving a huge bill. So, fuel efficiency consultant professional insurance is something for anyone operating the sector to consider.
Whether you are a firm specialising in the sector or a lone freelance, there is always the risk that a mistake which is real or imagined can end with a letter from a client’s solicitor. For example, a fuel efficiency consultant might be taken on by a company to examine a range of new fuel types and recommend their usage and benefits. They may even be asked to choose a new fuel system for a range of vehicles. If a company later feels they have made an error in their judgement, they could take legal action and even seek compensation.
Fuel efficiency consultant professional insurance with an element of indemnity cover will pay your legal bills up to set limits. This means you would not need to worry unduly about the cost of hiring a solicitor to defend a legal action. So you would get help with the bills from the lawyers, meaning you do not have to dig into your own pockets to cover your defence. This is extremely important as long and detailed cases can sometimes run up bills running into hundreds of thousands of pounds depending on the case.
This type of cover typically protects you if you are accused of making an error of judgement, an omission in your advice, or simply committing an act of negligence. It will even cover for things like allegations of breach of copyright, breach of confidence, or the loss or damage of a client’s important data or documents which were entrusted to you. Therefore it covers many of the common pitfalls which people offering professional advice face.
To choose the level of fuel efficiency consultant professional insurance which is right for you, you will need to decide how high the ceiling on your policy should be. Insurance companies will not pay out forever, and how much protection you might need will depend on the size of your clients and their likely amount of profit which might be at stake if an error were to be made. However, a policy will normally protect you from the start of a case all the way through to the highest levels of court in the land. It will even protect against compensation should it be awarded to a client who claims.
Increasing media focus on the environment and oil and petrol prices means there is arguably more interest than ever in the fuel efficiency industry. Making better use of fuel is no longer just an environmental concern but also a financial one. In some cases, a company’s future may depend on their ability to reduce consumption or to at least use petrol and diesel more intelligently. In turn this has led to more work for fuel efficiency consultants, and arguably more demand for fuel efficiency consultant professional insurance.
Cover of this nature is potentially important for a freelance or fuel efficiency business because it will usually include professional indemnity cover. This is a type of insurance which kicks in if someone faces legal action following a mistake or act of negligence, and this can result in legal action from a company.
Say a fuel efficiency consultant is hired by a firm to recommend a new type of machine or engine which uses fuel more sparingly but provides the same results. The consultant may recommend a product in good faith which then turns out to be a disappointment and may even lose the company money. This could result in the company suing the consultant to recover what they have lost.
Fuel efficiency consultant professional insurance could help provide protection in that it will step in in such circumstances and pay any legal bills which arise and even any compensation which is awarded to that client. There will be limits as to how much a company will pay out, agreed at the start of the policy, but they will typically be more than adequate as long as a company is careful to select the right level of cover.
For example, a small freelance firm which only deals with small to medium-sized businesses may want a different level of protection compared to a company which deals with large multinational firms. So some policyholders might opt for a £100,000 limit, for example, while others will need a limit which runs into the millions.
Most policies include useful and potentially crucial extras such as retroactive cover, which provides protection for a claim which arrives backdated to something which happened before the policy began. Overrun cover is also available for any business which is winding down or changing to a new insurer. Timeframes can be potentially important – particularly where legal matters are concerned.
Fuel efficiency consultant professional insurance is available in exchange for a regular premium as with other types of insurance, and will also often include public liability cover, and even cover if someone is accused of breach of copyright or confidentiality. This is why many people operating in the industry see this protection as a vital component of their business.