Setting up management consultants insurance
Being taken into a business and entrusted with improving it is a big responsibility, but is often a rewarding and enthralling challenge for a management consultant. Whether somebody is delivering a one-off training session or working for a business over a period of time, their work is expected to deliver results. Although on many occasions assignments will be complete smoothly and satisfactorily, it has been known for external consultants to fall foul of disputes with clients. This is a risk for anybody who provides their advice on a professional basis, which has certain legal risks which not everyone will have considered. Management consultants insurance can help protect against some of these hidden risks by paying someone’s legal fees in the event they have to defend a case.
Management consultants insurance will typically include an element of professional indemnity cover. This is a complicated-sounding name which simply refers to cover which backs up your ability to pay for your legal defence bills in the event you are sued. It applies to allegations you made a mistake in the general conduct of your business. If a dispute is not sorted out, legal action can ensue, which can be time-consuming and expensive for those who don’t have protection.
Cases can drag on for weeks or months, depending on the nature of the complaint, and may get quite far through the courts system, running up significant solicitors’ fees. Worse still, if the case is lost you may be ordered to pay compensation to the client.
Management consultants cover normally includes protection if somebody is accused of making a mistake, error, or omission. It also typically protects against accusations you have accidentally breached confidentiality or lost a client’s data or documents. Some other important extras include protection if the policyholder if is sued for libel or accused of acting dishonestly.
Management consultants insurance always comes with a top limit, which is the maximum amount of legal fees and compensation your policy will pay out for. You can often actually define this and it’s important to get the right amount, so it can be crucial to consider the size of your business and the type of clients you deal with to get the right level of cover and policy cost.
Comments
Leave a Reply