Professional indemnity insurance defends you against claims of negligence, breach of confidentiality, dishonesty, libel and slander. We offer up to £10,000,000 cover.
Helping your clients plan for the future isn’t easy. If things don’t go according to plan your recommendations will be under scrutiny, making you vulnerable to damaging negligence allegations.
So throw away your crystal ball and get something more reliable instead: consultants’ business insurance. If things do go wrong, it pays your legal costs and compensates your client. You know you’re protected, whatever happens.
Now’s a good time to remember an old adage. The one about ‘best laid plans’.
No matter how solid your advice, how innovative your strategies, or how detailed your plans, the thing you can rely on most is that something is bound to go wrong.
Unexpected changes might not always spell disaster, of course – you’re flexible and every plan A has a plan B. But if your clients’ businesses rely on constants, variables are going to cause problems for both of you.
If things don’t go according to (your) plan, it won’t be long before fingers are pointed, accusations are made, solicitors are involved and clients look for payback.
Even if you’re sure you’re right, a claim won’t go away if you ignore it. And there are no shortcuts. Something has to be done.
That’s where consultants’ professional indemnity insurance comes in. You need it because you have a business to run, because you have limited funds, because you’re not legally trained, and because your reputation matters.
What else is there?
Neither the Institute of Consulting nor the Management Consultancies Association specify a particular or minimum level of cover. So it’s up to you. Problem is, where do you start?
The thing to bear in mind is that, despite apparent similarities, every consultant is different and does different things. What’s right for some isn’t right for all and you need to think about what you do, as well as who you do it for and how much it’s worth. In your worst-case scenario, what could go wrong? What’s the most expensive mistake you could make?
If budget allows, you can never have too much cover. Defending you can cost tens of thousands of pounds – and that’s before you add the compensation bill from your client too. Your consultants’ professional indemnity insurance should be enough to cover all this.
It’s a tricky one to get right. Have a read of this guide or call us if you need more help.
Put simply, negligence claims and allegations made against you by clients and third parties. These will usually be because of mistakes you’ve made or things you’ve failed to do.
Specifically (but depending on the policy wording):
But that’s not all. Some professional indemnity policies can fix a mistake before your client is even aware of it, thereby preventing a claim in the first place.
If you have any employees, employers’ liability insurance is a legal requirement. If an employee suffers an injury or illness as a result of working for your company, they can sue it for damages. Your insurance can cover their compensation, plus any legal fees.
If you visit clients, or they visit you, consider getting some public liability insurance. This covers you if someone is injured, or their property is damaged, and you’re to blame.
Office and property insurance covers the things in your office (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the office (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up – it’s probably worth more than you think.
Business interruption insurance means you can still work when your office is out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.
If you’re a company boss, you can protect yourself with directors’ and officers’ insurance. Anyone can accuse you of not running your business with due care, and in the UK, company directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.