Protecting a business is a complicated process these days, whether firms are looking to tighten IT security or simply have a better alarm system installed. But the very companies whose employees carry out this work run their own risks, as if something goes wrong with the security advice or equipment, the client can lose money following a breach. Some may seek to rightly or wrongly blame the security firm, and in the worst circumstances legal action can ensue. A way of guarding against the financial implications of this is to take out security consultant professional indemnity cover.
This is a kind of legal protection which basically pays your legal defence bills should you ever be accused of making a costly mistake. It will not matter whether or not the accusation is valid. The cover will still apply and will even pay the cost of compensation which may be awarded against you.
While security firms may be quite confident in their abilities, equipment, and employees, a simple mistake which leads to a vulnerable spot in a system can be exploited. If the client firm later feels this was an avoidable error, the client can seek redress for the financial injury they have suffered, to use a common legal term.
Indemnity cover pays out for the cost of your legal defence, which is hardly ever a cheap option, and can sometimes run into hundreds of thousands of pounds depending on the length and detail of the case.
The normal wording of a policy is that it protects against claims you have made a mistake, error, omission, or committed an act of negligence. It can apply to companies or will simply protect one freelance individual. But mistakes are not all it provides cover for. It will guard against claims you have breached someone’s confidentiality or copyright.
Should you be accused of losing or damaging a client’s important data or documents, a policy will also apply for this defence. Security consultant professional indemnity cover is available up to set limits, as unsurprisingly a policy will not pay out indefinitely.
This means deciding how much security consultant professional indemnity cover you would need, and often a good way of doing this is by looking at the size of your business and your clients. While some firms need protection for hundreds of thousands of pounds, others may need cover for millions in legal bills and compensation.
Legal issues are often misunderstood and many businesses may not fully appreciate what the risks are when it comes to the chances of being sued. Security consultants may be better briefed and know the consequences of failing to properly protect a client and fill their requirements. Property and people may be a risk, meaning an error can lead to someone losing money or worse still saying a lax procedure or system has led to someone getting hurt. Security consultant professional indemnity cover is an insurance policy which would guard your business by paying legal bills if you are ever accused of making such an error. You may think that it is unlikely, but when they do happen legal disputes can be expensive.
For example, a consultancy might be hired by a relatively new company to recommend how best to protect their new premises against the chances of being broken into. You may set up a CCTV system for them and even recommend a series of door locks. Should that CCTV system later fail due to a wrong installation, the client could take legal action if they find their insurance was invalid after a theft.
This is why security consultant professional indemnity cover is important as being sued can lead to a compensation order against you. In the worst cases this can involve thousands of pounds of pay out and court appearances. You may need to hire legal help, and this is what indemnity cover pays for. In simple terms it pays your legal costs up to set policy limits, and even the cost of compensation which may be awarded against you.
Besides simple mistakes, a security consultant will also be protected against claims that they have breached confidentiality or copyright. It also guards against defamation claims, allegations that a firm’s employees have acted dishonestly, and will even cover you if you are facing action because you have lost or stolen someone’s important data.
Security consultant professional indemnity cover can therefore provide your own safety net against the threat of legal action. It can even be tailored to cover you if you get a lawyer’s letter announcing a legal action in future which relates to something which is so historical it happened before you even bought the cover, known as retroactive protection.
Businesses can take a all sorts of measures to minimize risks, from detailed and effective health and safety precautions, to saving up cash for when times are tight. A security consultancy needs to provide a top notch service to clients while also keeping an eye on its own stability, and security consultant professional indemnity cover can be a cost effective and valuable way of protecting against unwanted surprises.
This is a type of insurance which will protect your business if it ever faces a legal claim following a mistake or omission. In simple terms it pays your legal costs, meaning you do not have to spend thousands of pounds on hiring a legal team if you ever face the prospect of being sued.
This is important as a lot can be at stake on certain jobs, particularly if you specialise in making sure business premises are secure and well protected. One slip up can lead to a breach, possibly meaning a client loses a considerable amount of money and could even end up out of business for short periods. If they think you’re to blame for this, they may mount a legal challenge to recover their costs.
In such circumstances a security consultant professional indemnity cover policy would kick in and pay not just the costs of hiring legal help, but also meet any bills which are run up paying compensation to the client if their claim is successful.
A policy covers acts of negligence and general mistakes, but also normally covers for things like breach of confidentiality or copyright, and will even guard you in the event you faced a legal claim that one of your employees has acted dishonestly.
You will need to select the level of cover appropriate to your firm, as security consultant professional indemnity cover will not pay out costs or compensation indefinitely. So you might want protection for tens of thousands, hundreds of thousands or even millions of pounds. Think about time frames too – options normally include ‘retroactive’ protection for claims which arrive in future but which date back to an event which occurred before you bought the policy. Run-off cover is also used as a buffer zone as you change insurer or your job, so there is no period when you are vulnerable to an historical claim.
Security, both technological and physical, is more and more important to different companies. Some simply want to secure a property, while others are looking to make sure their IT networks are secure. Whatever type of work a consultant does in this sector, they are likely to be taking on a large amount of responsibility. An error in an installation, or a wrong piece of advice, can result in a client suffering not the only an inconvenient and distressing breach, but also potentially losing money. Security consultant professional indemnity cover can help a professional avoid some of the more unpleasant aspects of a legal case, and will even help them pay bills run up while defending a case.
Indemnity cover protects against allegations that a business has made a mistake, acted negligently, or simply omitted something accidentally. Say, for example, a consultant is hired to review the security for a warehouse business. They may make several recommendations, but a break-in may subsequently occur via a weak spot which was not picked up on. The company in question may then decide to take legal action having decided the consultant was to blame.
Indemnity cover will pay for the cost of hiring a legal team to defend the accusation. Depending on how long the case goes on for, and the detail involved, legal costs can spiral and leave some people wondering how they are going to make ends meet. Security consultant professional indemnity cover will help someone pay bills up to set limits, and will even pay out compensation if it is awarded to a successful applicant.
To get cover a business simply approaches a provider and asks for a quote. Most insurance companies will need a bit of information about what the security consultancy actually does, what type of clients it deals with, and how it agrees contracts. Security consultant professional indemnity cover on a basic level normally includes some handy extras too, like protection for cases which arise because of a client’s data or documents being lost, or because of accusations of breach of confidentiality or copyright. Extra cover periods are also available for consultants who retire, wind down the business, or who have only just got around to sorting out cover and are concerned about the possibility of a claim arriving relating to a past event.