The basic elements of management consultant insurance

July 16, 2009 · Filed Under Management Consultant Insurance 

One of the trickier tasks when setting up a business can be sorting out what type of insurance cover is needed. Some types of business actually need some types of deal in place by law, including the likes of public liability insurance and professional indemnity insurance. Examples of professionals which may need this type of cover by law include architects, solicitors, and accountants. Other professionals may not have to have protection in place as a matter of course, but may have been thinking about it thanks to some of the financial and practical benefits. Management consultant insurance is an example of this kind of cover which can provide tailored insurance just for this type of professional.

This kind of cover will normally include an element of indemnity insurance and also public liability insurance, often as an option or included in the price. Management consultants could be classed as one of the brands of professionals which are at risk of legal action, and may want their own personal policy to protect against this.

Indemnity cover cannot stop somebody from being sued but it can prevent some of the financial difficulties associated with it. It protects somebody in the event they are facing a legal claim following a mistake, omission, or act of negligence. This kind of cover will protect someone whether or not the claim is valid.

It will effectively pick up the cost of someone’s legal bills for defending the case against them, and management consultant insurance will even pay the cost of any compensation which happens to be awarded against the policyholder. This can at least mean that someone’s defence is taken care of by the insurance, which can make things considerably easier, particularly for businesses which do not have deep pockets.

For example it could pay out if somebody is accused of offering advice during an assignment which the client believes is not useful or which actually harms them financially after they have followed it. After claiming on a policy the management consultants legal costs would be covered right the way through a case to its conclusion, provided they stay within a set policy limit which is laid down when the cover is taken out.

To get this kind of insurance you can contact all sorts of insurance companies which specialise in professional insurance and can provide somebody with a number of quotes. The cost will be connected to the policy limit, which is important because naming an amount which is too low will mean somebody could end up under insured in a legal action, and if it is too high they would paying for a level of cover which they don’t really need.

These are the basic principles of management consultant insurance, which remain the same across all sorts of policies. The key element to remember is that they could save a business thousands of pounds all the way up to millions, should they face a costly legal action following a dispute related to an assignment.

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