More and more firms are starting to see that well trained and well organised staff are the key to the business. In turn this means there could be more demand for outside consultants to come in and provide workers with the key skills they need to complete an efficient job. As such a training consultant has a vital role to play in the future of some businesses, delivering advice and guidance on the short and long term future of departments and whole companies in some circumstances. This carries with it a considerable amount of responsibility and as such also a degree of legal risk. This means training consultant professional indemnity cover is something to think about if you are operating in the sector as a freelance or as a company.
The need for this kind of cover comes from the fact that some companies and clients may be minded to take legal action if they felt a consultant’s work had let them down, or worse still, actually cost them money. This is known as suffering a financial injury could occur if the wrong advice was given or if the advice turned out to be of little help.
While many disputes are ironed out amicably, consultants can sometimes face legal action. Indemnity cover will protect you against allegations you have made a mistake, error, omission, or simply committed an act of negligence in your everyday work as a consultant. Facing action like this is not a pleasant experience, no matter how valid the claims against you are. You will need to hire legal help to help you defend a case, and can even end up paying compensation.
Training consultant professional indemnity cover would pay the fees run up defending a legal case, and even compensation that may be awarded against you. It will not matter how valid or invalid the claim is, it will still have to be defended and will still be covered under a typical indemnity insurance policy.
Besides mistakes, this kind of cover also pays out if you are accused of unintentional defamation, breaching someone’s confidentiality or copyright, losing a client’s important data or documents, or even if an employee belonging to a consultancy firm is accused of acting dishonestly, and perhaps defrauding a client.
In exchange you simply pay a regular premium as you would do with any other kind of insurance. A typical policy can also be tailored to include retroactive cover, the words used for protection for claims which arrive in the future, but which backdate to before you even bought the insurance – useful for anyone who has been operating for a while without cover. You can also get run off or ‘overrun’ cover which will protect you for a set period after you wind down a business or change insurer, such is the late and often unpredictable nature of legal action.
Training consultant professional indemnity cover is therefore a flexible and useful shield against the financial impact of an unpredictable legal claim. You can often set your own policy limit, as a product will not pay out indefinitely, and the higher or lower your ceiling, the higher or lower your premium in many cases.
Many firms now increasingly realise that their biggest asset is their employees. This means more and more of them are making sure that their workers are properly trained. The more comfortable a workforce feels with doing their jobs, the more successful a company could be. This means there is a growing market for training consultants, who may either visit firms to pass on their knowledge or hold seminars and training sessions in another location which a variety of firms can attend. But as professionals in their fields they’re always expected to deliver a highly professional service and to pass on useful advice. If a client ever feels they have not done this or worse still, their advice was harmful, they may take legal action. This is why training consultant professional indemnity cover is potentially important for anyone working in this sector.
Although it probably sounds complex and intimidating to people who have not heard of it before, indemnity cover is really just an insurance policy which covers your legal costs if you are ever formally accused of making a mistake. One of the most common scenarios in which a consultant might face legal action is when a company feels the advice has lost them money. IE they have delivered training or advice which has actually somehow decreased profitability for a firm. They may then suffer what is known as a financial injury and seek compensation as a result.
Indemnity cover will pay out the costs of hiring legal help to defend such a case, and will even pay out the cost of compensation if this applies. Not every claim is valid, but virtually every claim will have to be properly defended and this often means hiring legal help. Few companies have unlimited savings on which to fall back on and pay lawyers’ bills, so this is when indemnity cover can be a lifeline.
Training consultant professional indemnity cover will also come with an appropriate policy limit which needs to be set by yourself. Larger companies need larger limits, perhaps running into millions of pounds, while smaller firms may only need thousands depending on what they feel they may one day need.
This type of policy will also protect against allegations that you have breached someone’s confidence or copyright. It even guards against allegations that a consultancy’s employees have acted dishonestly and perhaps stolen from a client. If you lose an important client’s data or documents, again you will be covered. Indemnity cover is essentially designed to pay your legal costs should you face any of the common law related problems faced by many businesses.
Training Consultant Professional indemnity cover can therefore be vital to some smaller businesses as it can be the difference between financial difficulty and being able to continue as normal while still fighting a legal case effectively.
Investing in training is seen as increasingly important by businesses big and small. Employees benefit and the firm itself can see a rise in productivity and efficiency. This means training consultants are in demand and their skills can sometimes command high prices. If something were ever to go wrong, the company may blame the professional and even take legal action to recover their costs. This is why training consultant professional indemnity cover is something for anyone in the business to seriously consider.
You may already have insurance for your buildings and contents and may have already taken out a form of public liability insurance. But legal protection is also a concern, and training consultant professional indemnity cover will pay any legal costs of defending a case if you were ever accused of making a costly mistake.
Court cases can be long, stressful, and expensive. Depending on what your business has in place as a contingency, it may even mean serious financial difficulty. In the worst scenario, it may even lead to the closure of your business. Provided you have sufficient cover in place, professional indemnity insurance will pay for your legal costs, meaning you may not even have to pay a penny past your excess.
This potentially means savings of thousands or even hundreds of thousands of pounds. This kind of policy will even pay out if the claimant is successful in court and awarded compensation. Normally this would have to be paid by you, but instead your insurance company would foot the bill.
To summarise exactly what this kind of policy covers, you will normally be entitled to claim if you are legally accused of making an omission, mistake, or committing an act of negligence. It will also normally cover things like breach of confidentiality, breach of copyright, or any case resulting from the loss or damage of a client’s data or documents.
This kind of policy is seen as essential by some professionals as certain types of organisation will not deal with the consultant if they do not have indemnity cover in place. A good example of this would be local councils.
Cover comes at different levels, as an insurance company will not pay out unlimited amounts of legal bills or compensation. So you may want £80,000 worth of protection, £100,000 of protection, or millions of pounds’ worth. It is up to you and is dependent on the size of your business.
Training consultant professional indemnity cover can therefore provide a vital safety net, and save not only stress but a large legal bill. Even if you don’t use it, you’re safe in the knowledge that you will be protected if an unpleasant legal claim was ever directed against you.