The ins and outs of management consultants insurance
As with any form of insurance, you may need management consultants insurance because it is an unfortunate fact of life that things can, and do, go wrong.
That’s life
Whether you work alone or with a consultancy partnership, you may never be 100% certain that the consultancy services you provide for your clients are always going to go exactly according to plan.
Something unexpected may crop up that can be attributable to you through something that you did or failed to do. There may be consequences that result in financial loss or damage to the client
It may be rare today to find a client who reacts to such financial loss with a fatalistic - ah well that’s life - shrug of the shoulders.
Court cases
These days, clients may well try to minimise any losses by suing the people or person they think is responsible.
If this turns out to be you or your company, then you may find yourself in court defending yourself against a claim for damages.
This could be as a result of:
- negligence on your part, something you did wrong or didn’t do at all;
- unintentional breech or copyright or misuse of confidential information;
- libel or slander;
- legal liability for the loss, erasure or destruction of documents or data;
- a dishonest act by you or one of your employees.
Of course, if you have employees then you may also benefit from the additional cover provided by employers’ liability insurance in the event that your employees sue you on an employment related issue.
If a case is found against you, then the protection of management consultants insurance may cover damages awarded against you as well as legal fees and expenses.
Optional cover
For some professions, PII cover is a mandatory requirement.
While this may not be the case for management consultancy, whether you are a self- employed or operate as part of a small practice perhaps with your own employees, having the protection that professional liability insurance cover can provide may typically be a sensible idea.
Life can be stressful enough without having to worry about the financial consequences of being sued. Management consultants insurance may be able to offer you peace of mind, thereby allowing you to concentrate on what’s important.