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Why HR consultant insurance is the resource you really need

14/11/2019

HR consultant insurance is a must-have resource for human resources consultants.

As an HR consultant, you're a people person: getting the best out of the workforce, finding solutions, and making sure no rules and regs red lines are crossed.

But while you're busy looking after everyone else, who's looking after you? If you haven't yet filled the role, HR consultant insurance makes for the perfect candidate.

That's because HR is sometimes a tricky thing to get right – even for professionals like you. And that leaves you open to accusations that you didn't do your job properly.

Think about it. There are the shifting sands of employment law to contend with. Staff recruitment and training, with their complicated contracts and lengthy Ts&Cs. Plus there's your client's data and confidentiality to protect, as well as unexpected issues like missed targets and extra costs.

Still, don't think you need HR consultant insurance as back-up? Read on.

Things just got personnel

HR projects, big or small, one-off or ongoing, can involve large sums of money. Overall, there's a lot to get right. And a lot to get wrong.

If your client doesn't see proof of promised returns or is fined by an employment tribunal because you advised them incorrectly, it's likely they'll file a claim against you, arguing you've cost them money.

This is what we insurance people call a breach of your duty of care.

Even if you're sure you haven't done anything wrong, you can still be dragged into a dispute. It's an inconvenient truth that some clients are all-too demanding – and very quick to point the finger of blame.

In such situations, the result can be a stiffly worded solicitor's letter that can't be ignored. At the very least you'll have to defend yourself. Worse, if a court deems you're liable, you'll have to compensate your client for their loss too.

All this spells financial – and reputational – trouble for your business.

How can HR consultant insurance help?

The main thing to remember here is that you're not on your own. If there's an accusation you made a mistake that's impacted your client financially, professional indemnity (PI) insurance has your back.

It's always a good idea to check the specific wording, but any HR consultant professional indemnity insurance policy worth its salt should cover you for:

  • Negligence or breach of duty of care.
  • Misstatement/misrepresentation.
  • Libel and/or slander.
  • Employee dishonesty.
  • Breach of confidentiality and/or data protection.
  • Intellectual property or copyright infringement.
  • Passing off someone else's work as your own.
  • Computer virus transmission.

Claim game

If there's a claim, your insurer pays for a legal expert to drill down into the detail and fight your corner. Should that lead to an out-of-court settlement, you're covered up to the limits specified in your policy. (It's important to get your level of cover right.)

If your claim does go to court after all, you're still fully covered. Your insurance pays your legal costs and compensates your client – whether or not you're in the wrong.

In your line of work, you know all about resources. And although insurance may be the kind of resource you don't have to call upon very often, when you do, you'll be thankful you have it. So will your bank balance.

If you've got any questions, it always helps to speak to a friendly voice. Call us on 0345 222 5391 and our own, er, human resources will be happy to help. Or you can click here for a quick HR consultant insurance quote.

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