Management and business consultant insurance
Professional indemnity insurance
Professional indemnity insurance covers the cost of defending your business against allegations of professional negligence (such as giving your client incorrect or wrongful advice) and any compensation or damages subsequently awarded against you.
Example of claims include:
- You produce a report for a client on restructuring their operations to lower costs. The changes directly attributable to the recommendations you have made result in higher costs for the client and they take legal action against you for the poor advice.
- You produce a strategy report for a client in relation to growing their sales, but the tactics end up losing them business. They take legal action against you to recover the lost income.
This is essential insurance for all management advisors and business consultants and insurance cover is available with limits ranging from £50,000 to £5m.
Public and product liability insurance
Public and product liability insurance covers the cost of defending your business (including damages awarded against you if unsuccessful) if someone is injured, or their property damaged, which arises from you going about your business or supplying products.
Examples of claims include:
While visiting a client’s office, you accidentally spill a cup of coffee over their smartphone and laptop. You are sent an invoice for the cost of replacing them.
A client slips on a wet floor and injures themselves while visiting your workplace. They make a personal injury claim against you seeking compensation.
If you regularly visit client premises as part of your consulting activities, you may need this cover. Limits range from £1m to £5m.
Employer’s liability insurance
Employer’s liability insurance is a legal requirement if your business has employees. It covers your business against claims for injury or illness suffered by employees arising from their employment.
An example of a claim would be:
- An employee trips over a computer cable at your office and is unable to work for several weeks due to the injury. They make a personal injury claim against you seeking compensation.
If your consultancy employs staff, you need this cover. Cover for £10m.
Office insurance covers your office buildings, office contents and computer equipment against accidental damage (including theft) whilst on your business premises. You can also choose to cover your business equipment (such as laptops and mobile phones) on a worldwide basis, and insure your business against loss of income and/or additional trading expenses following events such as damage to your property.
Directors and officers insurance
Directors and officers insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided in respect of the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. If you are a director of a business or management consultancy, you may want to consider this cover. Limits range from £100,000 to £5m.
Occupational personal accident insurance
Occupational personal accident insurance provides a weekly payment if you are unable to work due to temporary total disablement (subject to a 14 day deferment period).
In the event of loss of limbs, sight, speech, hearing, permanent total disablement or death, a lump sum would be paid out.
If you would struggle to maintain an income if you were unable to work following the accident, you should consider having occupational personal accident insurance to help ease the financial burden. Limits from £100/week to £500/week for temporary total disablement (£25k lump sum to £100k lump sum for permanent total disablement).
Legal representation and employment disputes insurance
Legal representation and employment disputes insurance pays your legal and representation costs, together with any award you are required to pay, following an employment dispute – for example, with another dance teacher that you employ in your business. It also pays costs and expenses for certain crisis management, identity fraud, official investigation, corporate manslaughter, pollution and data protection issues. Limit of £100,000.
Cyber and data risks insurance
Cyber and data risks insurance pays the costs of restoring data and equipment, informing clients, meeting ransom demands and loss of your net profit following a cyber attack. It also pays your legal defence costs and damages you are legally liable to pay to other parties. If you hold confidential information about your clients and their projects on computers and other internet connected devices, you should consider to this cover.
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