Professional indemnity cover might be a completely alien term even to some quite experienced professionals. But many businesses rely on it heavily to provide them with essential protection should they ever face an unfortunate set of circumstances. Many firms fear the threat of a legal claim, and quite rightly given the costs involved, but they need not unduly worry should they have the right type of insurance policy in place. Interim manager professional insurance is therefore something for anyone working in the industry to consider, as a policy with professional indemnity protection could one day save their business.
This type of cover normally qualifies you for a payout if you are formally accused of making a mistake, omission, or committing an act of negligence in your general business. As a professional, you are expected to deliver a highly specialised service and if a client feels you have not lived up to expectations they may take action to recover compensation. Worse still, they may feel they have lost a considerable amount of money due to a serious error, meaning you could be faced with a long and expensive legal battle possibly resulting in compensation costs.
Interim manager professional insurance with an indemnity element will simply pay your solicitor’s fees if you are ever accused of making such a mistake. They even protect against a broad range of legal outcomes, from allegations of defamation to accusations that you have breached someone’s copyright or confidence. They even protect you if you are accused of losing or damaging a client’s important data or documents.
You will need to simply choose what level of protection you think you need, as an insurance company will not pay out for legal bills indefinitely on a policy. So a firm dealing with just a handful of small clients may want legal protection for bills running into the thousands rather than hundreds of thousands. Note that a company will even pay out to cover the cost of compensation on your policy, meaning if a client is effectively awarded damages having successfully sued you, the insurance company will pay them.
Interim manager professional insurance is therefore a lifeline to some firms who may rightly or wrongly be accused of making an error. You can even arrange protection which lasts for a period after a business has wound down or you have changed jobs, protecting against any unwanted historical claims.
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.