Management consultant’s professional indemnity insurance quotes

November 11, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

Obtaining management consultant’s professional indemnity insurance quotes may be relatively easy once you understand why such cover may be required.

Your exposures and risks

Unfortunately, your relationship with your clients isn’t something that can be safely forecast. Things can and do go wrong in terms of professional engagements and when they do, you may find that your client resorts quickly to legal process.

The costs of such actions against you may run easily into very large sums. Even if you win, you may be left with large residual legal fees.

Professional indemnity insurance (PII) typically may help you with some of the potential costs involved.

Cover provided

Typically, the cover available may help cover occurrences such as:

  • accidental loss of your clients data or unintentionally breaching their confidentiality;
  • product liability claims against you or claims for professional negligence / lack of duty of care;
  • an unintentional infringement of intellectual property rights;
  • etc.

It’s worth noting that typically such insurance only operates in circumstances when your infringement or errors (if applicable) arise from circumstances other than intentional criminal activity.

Management consultant’s professional indemnity insurance quotes may illustrate that the premium for such cover is relatively modest when seen against the potential risks you face and the costs you may incur if you are uninsured.

Some cover of this type may even include public liability injsurance protection – in case a member of the public that has suffered injury as a result of your activities, products or property, sues you.

Employers’ liability insurance

In many situations, if you have staff working for you, the law may oblige you to provide employers’ liability cover. This covers the costs arising from any accidents or injuries your staff may sustain in the course of their legitimate activities on your behalf.

Surprising as it may sound, the law does not define employees as being only those that have a contract of employment. In some cases, even people that are helping you on a voluntary basis may have the right to sue you for compensation.

Looking at what’s available by way of employers’ liability insurance cover when seeking management consultant’s professional indemnity insurance quotes, might be a sensible move. Some policies may ask that you buy this as an add-on, so never assume that it is automatically included within your PII cover.

The benefits of management consultants’ professional indemnity insurance

October 22, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

There is, perhaps, a slight danger that management consultants’ professional indemnity insurance is seen as a luxury and nice-but-not-essential accessory to your professional portfolio.

The reality

That logic and train of thought may be fine – right up until you find yourself being sued under any one of several categories including things relating to losses of data or documents, libel and slander, public liability or accidental breach of confidentiality etc.

The problem is that, as a management consultant, you will typically operate in close contact with your client. Through your fees, you will be helping position them for success and taking your rewards accordingly.

While things are going well, everybody may be happy with that situation.

However, if things go wrong, and that can happen very quickly, your clients may expect you to take responsibility for the consequences – and they may demand more than just a sincere apology.

If you don’t have management consultants’ professional indemnity insurance, you may find yourself in some cases facing insurmountable costs that could, potentially, bring your business down.

Keeping cover effective

It’s also worth keeping in mind that your potential liabilities don’t cease the moment your contract with the client does.

Client can, and sometimes do, take action a considerable period of time after a contractual relationship has been formally terminated.

If you have allowed your insurance to lapse, you may find yourself needing to deal personally with any financial implications arising.

A selling aid

Some potential clients may be positively influenced by your ability to show that you have this sort of insurance cover.

Others may, in fact, insist that such cover is in place as a mandatory component of any request for information or a proposal. Being seen to be rushing to put this into place at the last second may not create quite the professional impression you were hoping for – so thinking ahead may be advisable.

Conclusion

Like any insurance, management consultants’ professional indemnity insurance costs money. Yet those costs may typically be seen as being modest in view of the protection and peace of mind provided. Finding out more may be a useful investment of a few minutes of your time.

Protecting your livelihood with management consultants professional indemnity insurance

September 17, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

Unfortunately, running a business isn’t just about bringing the money in and keeping your customers happy. As part of the day-to-day running of your company, one thing you may need to ensure is that you have the necessary protection in place should something go wrong and a claim is made against you, your company or an employee. And that is where management consultants professional indemnity insurance is designed to help.

Management consultants insurance may be considered important for anyone who runs a business and wishes to protect it against potential financial losses caused by a claim being made against it.

In fact, with some trades, such as Accountancy, you are legally obliged to have the cover.

Policy benefits

Having risk management in place in the form of professional indemnity insurance may help your business survive if something accidentally goes wrong that causes perceived financial harm or other loss to another party. There are profession-specific forms of professional indemnity cover and, often, different levels of protection too.

Why professional indemnity insurance?

Consider this – would your business survive if it was faced with a claim of negligence against it? One claim could quite simply wipe out your business’s financial resources. But having the financial protection of professional indemnity insurance in place may help stop this (any claim paid would be up to a pre-agreed financial claim limit).

Is it really necessary?

You may believe that management consultants professional indemnity insurance is an expensive, unnecessary overhead. However, do remember that any business, no matter how well run, can face substantial claims against them.

And with Court awards rising sharply in recent years, it may be worth seriously considering professional indemnity insurance.

Buying it

So, where do you go if you want to buy professional indemnity insurance for management consultants?

Tailor made, bespoke insurance is available with some specialist professional indemnity insurance providers, meaning typically that you can often get cover that is specific to the nature of your business.

Even the tightest of run companies may face the prospect of financial ruin should a claim be made against it. Management consultants professional indemnity insurance may help alleviate this worry.

Choosing management consultants professional indemnity insurance

July 30, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

You may have already done your homework when setting up your business and know all about choosing management consultants professional indemnity insurance. However, if you are not sure what this is and what the benefits may be, then read on.

What protection does a policy offer?
In short, management consultants professional indemnity insurance provides protection to management consultant businesses in the event that they are sued and taken to court.

While we all do our very best to be professional, there may be times when a mistake occurs and these mistakes may be very costly.

Excellent book keeping may pay off
Whether you are running a small or large business, it pays to learn the skills of book keeping and documentation. Always ensure that any contracts have been well planned and you have made sure the client knows what your responsibilities are. You may wish to give careful attention to how you lay documents out and make a note of everything that you do for your clients. This might typically include detailing times and dates and exactly what you did. In the event of someone claiming against you this documentation may then be used to show exactly what happened and whether you did something that negatively affected your client.

Do providers all offer the same?
When you go looking for management consultants professional indemnity insurance, you may wish to bear in mind that not all insurance providers typically offer the same elements of cover.

For example, some insurance providers might offer higher maximum amounts if you were to claim, while some providers may give you what you perceive to be more for your money than others.

Typically a policy may protect you against the following, depending of course on the provider and the level of insurance you choose;

  • slander and libel cases;
  • public liability insurance may be included or you might need to pay more to have it added on;
  • defamation of character;
  • losing documents or data belonging to a client;
  • dishonesty;
  • accidental breach of confidentiality;
  • infringement of intellectual property rights deemed unintentional.

When choosing management consultants professional indemnity insurance, you might be saving yourself from a lot of stress and financial worry if the worst were to happen and a claim were made against your company.

Management consultants’ professional indemnity insurance explained

June 26, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

The recommendations made by management consultants may often involve the future wellbeing and growth of their client’s company. Management consultants’ professional indemnity insurance aims to ensure that any damages sought by the client as redress, should those recommendations not work out, could be covered.

Wide cover

Professional Indemnity Insurance or PII typically provides financial protection for a wide variety of professions and professionals against the financial consequences of being sued by their clients.

It provides cover for a wide number of eventualities that may arise as a result of the services provided. These typically include:

  • accidental breach of confidentiality;
  • loss of documents or data;
  • defamation;
  • libel or slander;
  • dishonesty by the consultant or their employees;
  • unintentional infringement of intellectual property rights.

Any of these may cause financial or reputation loss to the business of the client, whose response could be litigation for restitution.

Without management consultants’ professional indemnity insurance cover, you may find yourself personally liable for any such awards together with legal costs and fees.

PII cover may typically provide this kind of protection;

  • for you if you work on your own;
  • for your business partnership;
  • for any employees that you may have – though this would not extend to employers’ liability cover which you may need in addition .

Valued option

For many professions involving the provision of consultancy services, PII may not actually be mandatory.

However, clients may request that consultants provide their own cover. Even if they don’t though, in a competitive selling marketplace, potential clients and buyers may value a proposition that includes a comment about the existence of PII.

They may regard it as a sign of your personal responsibility and experience.

As a consultant, you may always endeavour to provide clients with exemplary work, to meet your commitments and achieve a successful outcome on each assignment.

Unfortunately in a high stress occupation, mistakes can and do happen though.

Making sure that you have the resources to cope with the financial consequences of any such mistakes may be that bit easier if you have the protection of management consultants’ professional indemnity insurance behind you.

Finding management consultants professional indemnity insurance

May 26, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

It has to be acknowledged that management consultants professional indemnity insurance isn’t a description that trips lightly off the tongue! Yet the name is far more complicated that the reality.

The risks of being sued for professional activities

It would be nice to think that we can engage in our professional activities without the need to worry about the threat of legal action but sadly that may be a risky approach.

The reality is that as a management consultant, you work closely with clients and provide them with your advice and guidance to help them in their decision-making and business transformation.

If everything goes well, you typically will look forward to receiving your fees and hopefully, your client’s sincere appreciation for your services.

If things go wrong though, in addition to forgetting the praise, you may also need to anticipate legal action for damages of the generic professional negligence type.

Management consultants professional indemnity insurance may help you cover the potential costs of that possibility.

Risks covered

Typically, this form of protection exists to help with the financial costs you may face from legal actions and court awards arising from accidental or professional negligence. It may be important to note that typically this would not cover instances where you or members of your staff were guilty of intentional acts.

These types of policies may be able to offer you cover for things such as the loss of confidential client documents or data, slander, accidental contraventions of intellectual property rights, late delivery claims, libel and unintentional breaches of contract.

If this sounds to be something akin to overkill, then it might be prudent to remember that courts do not necessarily decide on damages based upon intention – they are more likely to be influenced by the losses sustained by your client. In other words, even if the incident was entirely accidental, you may still find yourself facing a huge compensation bill.

Insurance to help you sleep easy at night

If you’re engaging in professional activities then the cost associated with management consultants professional indemnity insurance may be a small price to pay for having that financial support in place.

What is management consultants professional indemnity insurance?

April 23, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

Management consultants professional indemnity insurance is a form of insurance cover designed specifically for business people and professionals. It looks to offer you financial protection should you be sued for any one of a number of specified reasons.

Why would I be sued?

It doesn’t matter how careful and conscientious you are in the practice of your management consultancy, there is always the possibility that something will go wrong for either you or one of your staff.

It doesn’t take much to suddenly find you’ve an irate client on your hands.

If you think that’s bad, it’ll be as nothing compared to the troubles you may face if your client is sufficiently angry to sue you for damages under any one of a number of headings.

In today’s business world people are perhaps more inclined than ever to attribute blame when things go wrong and to seek compensation – that’s how you could end up in court. Even if your client (or probably ex-client by this stage) fails to win their case, you may still find a huge legal bill landing on your desk.

In a nutshell, that’s why management consultants professional indemnity insurance exists – to typically help meet the financial costs and awards associated with such legal actions.

Where am I vulnerable?

Your legal exposures may vary depending upon the exact nature of your business but typically include you being at risk of being sued due to:

  • breaching confidentiality (accidentally);
  • libelling or slandering a third party or client;
  • delivering a solution that caused consequential damages (product liability);
  • accidentally infringing intellectual property rights;
  • losing critical client data or documents;
  • public liability-related accidents.

This is far from a comprehensive list. If you are sued for any of the above reasons or others, then you may be making some very large payments unless you are covered for an insured-risk through a management consultants professional indemnity insurance policy. (Do note that in relation to the alter bullet point, public liability insurance may not always form part of a professional indemnity insurance policy and may have to be bought as standalone cover, so always check the policy wordings).

Would I be covered against everything?

All insurance policies of any type carry details of the insured risks, exclusions and conditions. It is typically highly advisable to read these carefully.

Some policies of this type may exclude cover under some categories of risk should you be proven to have intentionally committed an offence such as the deliberate publication of client confidential information.

Isn’t it expensive?

Little if any insurance is ever free but the cost must be weighed against the risks you run by continuing your business uninsured or under-insured.

Doing without cover may continue to appear to be the right thing to do – right up until you encounter a problem and are sued.

Management consultants professional indemnity insurance may be surprisingly attractively priced if you think about it in the context of the sums that may be awarded against you by a court or tribunal!

What is management consultants professional indemnity insurance?

February 1, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

What is management consultants professional indemnity insurance? Also known as PI insurance or PII, this protects companies offering advice or consultancy services. In some industries, having professional indemnity insurance will often form part of a contract between a supplier and the client in order to protect both parties against financial loss that occurs as a result of error or omission.

This may typically include things like:

  • a negligent act;
  • libel and slander that is unintentional;
  • infringement of intellectual property rights that is unintentional;
  • loss of documents or data;
  • unintentional breach of confidence or misuse of information.

These are all things that can happen, even to the savviest of business people with the best staff. And if you or your management consultants company is sued for damages as a result of one of these things, then:

  • your reputation could be destroyed;
  • unless you have PI insurance in place, you will have to pay for the costs of defending yourself and any awards made to the other party.

Management consultants professional indemnity insurance can typically help your business at times like this by providing assistance so that you do not lose out financially. (Of course, there is usually a pre-agreed excess that you will be liable to pay and limits to claim amounts). The alternative – funding the costs yourself – could see you seriously deplete your firm’s financial reserves or even see it go under.

The FSA definition of professional indemnity insurance

The independent non-governmental body the Financial Services Authority (often referred to as the FSA) defines professional indemnity insurance as “a liability insurance that covers businesses in the event that a third party claims to have suffered a loss as a result of professional negligence”. In layman’s terms, this means that the management consultants professional indemnity insurance can typically step in and cover at least some of any financial losses incurred by a company – subject to the claim being accepted by the insurer of course.

As with all insurance policies, management consultants professional indemnity insurance policy benefits and features can vary depending on who you buy your cover from, so do check the small print so that you fully understand what the PII cover provides. If you have any doubts, contact your provider.

Management consultants professional indemnity insurance explained

January 22, 2010 · Filed Under Management Consultant Professional Indemnity Insurance · Comments Off 

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.

Management consultants professional indemnity insurance explained

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

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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