Why buy training consultant indemnity insurance?

November 10, 2008 · Filed Under Training Consultant Indemnity Insurance · Comment 

UK companies increasingly rely on the expertise of external individuals to help improve businesses – many large corporations now think nothing of hiring an outside consultant to help them work on a special project, deliver a set deadline, improve efficiency, or manage a department through a crisis. Accordingly firms also hire professionals to provide training to their staff to upgrade skills and improve the abilities of a small group of workers or even an entire workforce. Although mistakes made while delivering training in such a manner are rare, they do happen, and a more litigious society means any errors might lead to a court case. This is why many professionals working in the sector take out training consultant indemnity insurance policy.

Legal claims are unpredictable and can crop up for a variety of reasons. Say a training consultant takes a group of workers through a detailed procedure, but makes a small mistake in the advice they give. Once the training is completed, the trainees employ what they have been taught but the mistake in the advice means they do not operate as efficiently as hoped – they may even lose a company money because of it. This may mean a company looks to recover their costs by taking legal action against the training consultant. Thankfully, a training consultant indemnity insurance policy protects the policyholder against being sued following a mistake, omission or act of negligence.

Cover is provided by the insurer who will pay any reasonable fees which are run up during the defence or the settlement of a legal claim. Certain limits will apply, depending on the level of cover which is taken out, but generally a policy is designed to stop a professional being crippled by a massive lawyer’s bill following a regrettable but straightforward mistake. It will also cover some other eventualities, typically being sued for libel, facing a claim related to breach of copyright or confidence.

Cover is often a good idea for anyone who gives professional advice, and is arguably crucial for someone who makes a living from passing on skills to someone else’s employees. While such legal cases are still relatively rare, they are a threat and a part of the modern business world – a training consultant indemnity insurance policy can protect against this threat.

Premiums relate to the level of cover taken out and excesses can be flexible – meaning there are polices to suit almost any budget. ‘Retroactive cover’ can even be arranged for claims that arrive which relate to past events – ensuring there is a complete safety net for anyone providing professional advice. So, although it may seem like an extra cost, a training consultant indemnity insurance policy is seen by many operatives as an essential tool in the general running of their business.