There are probably as many different types of consultant as there are business problems to solve.
If they share one thing in common, though, it is likely to be their need for adequate insurance – especially to protect them from the fallout that occurs and financial losses that might be suffered by their clients if mistakes or errors are unwittingly made.
Consultants insurance is not going to prevent all mistakes or slip-ups from being made, of course, but it is going to protect you and your business against action taken by those of your clients that believe you have been responsible for some financial loss they may have suffered.
To shine the light on some of the issues and problems likely to be faced by a consultant in this regard, it might be helpful to look at the particular situation of computer consultants and their need to protect themselves against allegations of professional negligence in the work that they do.
Computer consultants themselves may be offering a whole range of different skills and services, whether as consultant or contractor – work ranging from technical advice and project management, to programming and software development.
These consultants might be working as a sole trader self-employed basis or they may be responsible for running an entire agency of computer specialists.
Whatever your role and whatever the size of your business, you might want to protect your professional standing and financial security with consultants’ professional indemnity insurance – it is a specialist insurance product we are proud to offer here at constructaquote.com.
Why choose constructaquote.com?
- It might take some time before any mistakes are spotted and a claim made against you – so the availability of retroactive cover may be welcome news
- Consultants work on many different sized projects, so we offer flexible levels of consultants’ insurance
- We have made insurance for small businesses our speciality for the past 25 years and now service more than 33,000 policies each year
- To judge from the 95% of our customers who rate our services as “good” or “excellent” we are evidently doing a good job
- Be reassured that all of our contact centres are based in the UK.
How can consultants’ insurance help?
Continuing with our example of the computer or IT consultant, it may become clear how even the slightest error or mistake might lead to a faulty response from the hardware or software you have developed and installed.
A small mistake, maybe, but it might be costing your client many thousands of pounds in lost business whilst operations are delayed until the problem is fixed. You may be held liable for those losses and, if you are considered to have been negligent, may be ordered to compensate your client for the losses.
The IT specialist is merely one kind of consultant, of course, but similar principles and similar risks are encountered by all types of consultant.
Consultants’ insurance is designed to provide protection against claims of professional negligence involving all such consultants.
Employers’ liability insurance – who needs it?
Mention has been made of the possibility of your running a specialist agency in which you employ others.
As far as those employees are concerned, you have a particular responsibility for ensuring that their working environment and the jobs you ask them to do remain safe – that they suffer neither personal injury at work nor contract an illness or other medical condition as a result of their employment.
It may take a number of years for some of those illnesses and conditions to manifest themselves, but as their employer, you may still be held liable and ordered to pay a substantial amount in compensation.
In order to protect the rights of employees in claiming any such damages, the law requires that, from the moment employment begins, you to hold a minimum of £5 million employers’ liability insurance – on pain of a £2,500 fine for every day that you fail to have that cover.
Although the legal minimum is £5 million, here at constructaquote we go that extra mile by ensuring that cover of up to £10 million is included as a standard feature of our policies.
Public liability insurance – who needs it?
As if professional liability and employers’ liability were not enough, the business consultant also has a duty of care towards members of the public at large.
If a member of the public – including your customers, suppliers and any visitors to your business premises – suffers an injury or has their property damaged as a result of what they claim to be your negligence, you may again face claims running into many thousands of pounds.
Indeed, public liability claims have the potential for assuming such considerable amounts that the typical amount of public liability insurance required by any small business is a minimum of £1 million – and may be considerably more than this, depending on the particular nature and size of your business.