Why is insurance for management consultants important?
As a management consultant, you need to be an agile thinker who can provide quick solutions to your clients changing needs. But, despite your hardest efforts, sometimes briefs can go awry, and the client may not feel that your work has yielded the expected results.
When this happens, your client will want answers. These discussions can get heated in no time and can lead to disputes over money and compensation – costs that can harm you and your business and cause undue stress and financial worries.
Your reputation is everything, and clients will trust you based on your flawless track record and referrals received from other satisfied clients.
If someone challenges this and incorrectly accuses you of wrongdoing, clearing your name can be an exhausting and expensive process which can not only cause financial worries, but can distract you from your work and cause a knock-on effect of displeased clients.
Professional indemnity insurance for management consultants
Keeping you one step ahead of any such dispute, professional indemnity insurance (PI) is legal cover for management consultants which provides legal assistance and covers any associated expenses should you find yourself defending your case. It will also pay any compensation if you are found to be liable.
Whether you work as a contractor or run your own business, professional indemnity insurance acts as the safety blanket between you and a business-busting fine.
It responds to accusations from unhappy clients regarding professional misconduct, negligence, duty of care breach, mistakes, confidentiality breaches and more.
And it’s not just the financial protection that management consultant PI insurance offers. Being in a challenging situation with a client can bring a lot of stress but knowing that you have a legal team behind you at all times dealing with the problem, can be life saving.
Do management consultants need public liability?
If part of your job is visiting clients and carrying out work at their premises, or if you engage with their property in any way, you will want to make sure your livelihood is protected with public liability insurance.
Providing an even stronger level of support, public liability insurance will protect you against accusations of causing an accident leading to an injury or property damage. This is the case for causing any kind of damage or injury while out and about in the course of your business but also at your own premises if you have any.
Be aware that if you employ staff, you will need employers’ liability insurance by law.
What does business insurance for management consultants cost?
It is surprisingly inexpensive to protect yourself with professional indemnity and public liability insurance. With Suited it only costs a few pounds a month.
That is a great value if you consider the cost of an hour with a solicitor to discuss a potentially litigious situation with a client. And it is rarely possible to squeeze the entire discussion in one hour. Needless to say that if a conflict develops, the legal costs will far exceed what you’d have ever paid for liability insurance.
Suited also includes free and unlimited access to a number of telephone helplines that can assist with matters such as legal issues or tax enquiries. There is also counselling, identity theft and negative PR help, should you ever need it.
