Why do environmental consultants need insurance?
Legal claims for compensation
Environmental consultants advise and guide clients who wish to comply with regulations and sometimes base their business USP on their approach to environmental issues. Failure to meet expectations could result in a compensation claim against you.
Reputation and financial risks
A client’s accusation of wrongdoing is more than a spot of bother. It’s costly without the proper legal insurance cover, and without the correct handling, it can damage your business's future.
Accusations of causing property loss or damage
As an environmental consultant, you may be granted access to restricted areas of your client's business. If you forget to lock a door properly or knock over expensive equipment, you could be asked to pay for the damages or possible theft.
Contractual disputes and unpaid invoices
Self-employed environmental consultants are at risk of unpaid invoices or contract disputes, just like any other business. Clawing back what you’ve earned can be time-consuming and costly without the right help.
Professional indemnity insurance for environmental consultants
A critical cover for self-employed environmental consultants is professional indemnity insurance.
Environmental consultants provide guidance and suggest solutions for your client’s businesses, and professional indemnity will offer legal protection should you be accused of making a mistake or negligence.
Professional indemnity insurance can be a cost-effective solution for environmental consultatns who face potential exposures. The coverage can provide protection against high costs that may arise if you need to defend yourself.
What does environmental consultant professional indemnity insurance cover?
Professional indemnity insurance protects environmental consultants from claims or accusations of wrongdoing from their professional advice or work product.
Cover includes:
- Failing your duty of care
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example:
- Your client claims your advice put their business at risk by not complying with rules and regulations.
- You’re being held liable for financial losses of your client’s company following the implementation of your recommendations.
What professional indemnity limit do environmental consultants and agencies need?
When deciding on your professional indemnity limit, it's important to take into account your business activities. Factors such as the value of your client contracts, your contractual obligations, and potential financial consequences if your advice or recommendations are incorrect should be considered. This will help you determine the appropriate limit for your needs.
Switching your professional indemnity insurance
Typically, in the UK, if you cancel a professional indemnity policy, you can no longer claim against it.
Therefore, if you switch your environmental consultant insurance provider, be sure your new policy covers your past work; this is called “retroactive cover”.
Should I keep professional indemnity insurance if I finish environmental consulting?
It’s wise to keep your professional indemnity if you close your environmental consulting business. Claims against professional misconduct can surface months or years after you delivered the work.
If a past client sues you for damages and you have cancelled your professional indemnity, you will not be covered.
How long you keep your cover in place is up to you; consider the type of work you did and the likelihood that a client might bring a claim against you.
Public liability insurance for environmental consultants
Public liability insurance shields environmental consultants from claims of injuries or property damage.
Public liability insurance is essential if you are physically involved in your client’s businesses, having regular meetings, inspecting your client’s premises operations, dealing with their staff, or working in spaces exposed to the public.
It will protect you from claims of causing injury or property damage. This is usually a low risk for consultants who don’t offer manual services. But unfortunate accidents do happen, and public liability insurance for environmental consultants is an inexpensive peace of mind.
What does environmental consultant public liability insurance cover?
Public liability insurance is valuable when faced with injury claims and compensation demands.
Cover includes:
- accidental injury or death
- accidental property damage
For example:
- You may accidentally damage your client’s expensive piece of equipment while on a site visit
- While working with the client’s staff, an accident of a spilt drink caused personal property damage.
Other insurance environmental consultants buy
The insurance requirements for environmental agents vary based on individual circumstances. It is important to consider factors such as ability to handle tax or legal disputes, dependence on costly computer equipment for income, and options for covering business expenses in the event of illness. Additionally, the presence of employees should also be taken into account.
Commercial legal expenses insurance
Most commercial legal expenses insurance will protect environmental consultants against various tax and legal issues you may encounter due to your profession, which are not picked up by professional indemnity or public liability.
At Suited, we combined £100,000 of commercial legal expenses insurance with helplines and other tools to better assist environmental consultants in dealing with these issues. We call this Business Legal Protect, and it’s part of your subscription.
Business Legal Protect offers qualified advice and assistance with:
- Legal and tax matters concerning your business
- Criminal prosecution
- Compliance & regulation issues
- Help with unpaid invoices (over £200)
For example
- HMRC investigations into your tax affairs
- You need legal help chasing a client with a significant unpaid invoice.
- You wish to take a business partner or client to court over a breach of contract.
- You required guidance on compliance or regulatory issues for your business.
Electronic business equipment insurance
Nowadays, environmental consultants heavily rely on electronic equipment to provide their services. If your business is dependent on electronic equipment, it would be wise to consider getting electronic business equipment insurance.
Employers’ liability insurance
According to the law, if you employ individuals, whether full-time, part-time, contractors, or volunteers, it is mandatory to have employer's liability insurance.
This coverage is in place to provide protection for both you as the employer and your employees in case of any work-related injuries or illnesses.
Shopping for environmental consultant liability insurance
Whether or not you decide to use Suited environmental consultant insurance to protect your business, it’s worth keeping the following in mind:
Cheap environmental consultant insurance
When you're selecting environmental consultant insurance, it's important to consider more than just the cost. You deserve a dependable provider that puts your mind at ease. Suited delivers swift responses and multiple communication channels to provide the security you need.
The reputation of the insurer is important
At Suited, we know that having insurance coverage when you need it the most is crucial. We work only with financially stable insurers who possess an excellent reputation for paying out claims, with an A+ rating.
Many providers charge fees to amend or cancel
Some insurers may have low initial prices, but they may charge hidden fees for monthly payments or policy changes. At Suited, we don't have any additional fees, and you can cancel your policy anytime without incurring any extra costs.
Some policy wordings are restrictive or have a high excess
Other providers may offer lower rates, but they may not provide sufficient coverage. Our professional indemnity and public liability policies at Suited have no excess fees, ensuring you have complete coverage in case of any unexpected occurrences.
