Setting up a business can be a rewarding but time consuming process, and deciding what it is you exactly need to start with can also be difficult. Most firms rely on some form of insurance, and protection against theft and fire for premises and equipment is common, as is public liability insurance for some firms. Most forms of consultant may also want to bear in mind legal risks and the chances of being sued if something goes wrong. Indemnity insurance can guard against these risks by paying legal fees in certain circumstances. However, it can be difficult knowing exactly what level of protection is needed for certain firms, and going to a management consultant indemnity insurance professional could help.
An adviser like a broker can not only often find quotes from a number of different providers but also give some guidance about what kind of policy might be suitable for someone’s business. Indemnity insurance is a very wide product with some policies covering your legal bills and compensation costs up to tens of millions of pounds.
However, it can also be suitable for small scale businesses who are at an equal level of risk but who don’t necessarily need such comprehensive cover. Although the decision lies with the policy holder, a management consultant indemnity insurance professional could give you an idea as to what limit might be best suited to a company and provides a range of different products to choose from.
For example, some deals include public liability cover if it is needed, while others won’t. Others provide a legal advice helpline, while others won’t. Many firms provide an option for ‘runoff cover’, keeping an individual or company protected for a period after they have stopped trading or wound down a business in case they are sued at a later date.
These are just some of the common options and it could also pay to look closely at the circumstances covered – most deals protect against the likes of unintentional defamation and breach of copyright and confidence, plus claims of dishonesty and accidental loss of data or documents.
A management consultant indemnity insurance professional like a broker can’t choose a deal for you but they can help to outline the options and get a number of different quotes. The contacts and knowledge a broker has may not only save a consultant time but also money, as they may be able to get hold of deals the applicant can’t.
As many of them likely have busy schedules, management consultants may not always get around to researching how indemnity insurance works and how it can protect their business. A helping hand from a management consultant indemnity insurance professional can show the way, and contacting a broker or specialist insurance company should tell you all you need to know.
Indemnity cover, as a guide, pays out towards legal fees following a successful claim. This will apply if you have been accused by a client of making a mistake, an error, omission, or committing an act of negligence. The mistake must have been made during the normal conduct of your business, which may involve dealing with a number of high-profile clients and making important recommendations. As a hired expert, a management consultant is expected to deliver a professional service, and if a client feels they have been let down or lost money they may take legal action.
Indemnity insurance is designed to protect against this eventuality and it will pay for your legal help in defending the case and even stump up the cash for compensation which might be awarded. Although certain limits apply, it is therefore designed to ensure your company stays on its feet financially even in the face of a significant legal claim.
Unprepared businesses may find they are quickly in debt or facing the wall if they have to suddenly fight a legal action and even pay compensation. Management consultant indemnity insurance professionals can help you get cover designed to prevent this situation by covering the cost of hiring solicitors to fight your case. Besides general errors, it will also protect against allegations that a consultant has breached someone’s confidence or copyright, or that one of their employees has acted dishonestly.
A management consultant indemnity insurance professional can therefore help you iron out your policy limits and also tell you exactly what is covered by a deal. Some will include public liability insurance and others can be arranged to include retroactive cover for past events, or even run off cover for when you change insurer or simply decide to wind down a business.
Seeking the right kind of insurance cover for a new business can seem like a tricky chore at times. A range of policies, providers, and cover levels can sometimes combine with jargon to create what might seem like a maze. Some products are less complicated than they first appear, for example. Indemnity insurance is one type of cover which need not be daunting and which can be organised with relative ease. Some choose to seek out cover themselves, while others choose to get help from a management consultant indemnity insurance professional, such as a specialist broker.
Such specialists can get a range of different quotes from different providers and pass them on to an applicant for a decision. This can save time and help a consultant choose what level of cover is right for them. As a professional, a management consultant can expect to carry out duties such as running projects for companies and managing teams of people in an effort to improve performance. Should they fail in their task due to an error or act of negligence there is always the possibility of legal action, particularly if the mistake leads to a client losing money. It is this legal action management consultant indemnity insurance guards against in that it will cover legal fees within the policy’s agreed reasonable limits.
A management consultant indemnity insurance professional might be able to suggest what level of cover will be suitable for a business. Typically levels from around £50,000 upwards can be selected, right the way up to millions of pounds which would suffice for some larger cases running for long periods. Remember a policy can payout not just for any legal costs but for any compensation amount awarded to a complainant. For this reason a careful and considered judgement, perhaps related to the size of the businesses and the size of its typical clients, is perhaps needed when deciding on a cover level. However, putting a policy in place need not be a complicated experience, particularly if expert advice is sought. One day it could prove vital to the survival of a business if a significant legal claim happens to land on the door mat.
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.