Professional Indemnity Insurance for Business & Management Consultants

Giving advice to clients is how you make a living, but what happens if this advice goes wrong?

Why choose Hensure for PI insurance

01

Personal Service

Our business is not a call centre, but instead provides a personal service and dedicated team to assist with your queries.

02

Experienced Team

Our team has a wealth of experience and knowledge to help you and your business get the most appropriate cover for your needs.

03

Online System

Our full 24/7 quote and buy facility allows you to run a personalised quotation, at a time that suits you and your business.

Why does professional indemnity insurance for Business & Management Consultants make sense?

As a Business and Management Consultant, clients rely on your advice in order for them to reach their business goals. In many cases, the advice that you offer can lay the foundations for your client’s businesses to either thrive or to fall.

With the stakes so high, it is not surprising that when things do go wrong for clients, they can be aggrieved. If they end up feeling the advice that you have given them is negligent, they may choose to take legal action against you to recover the losses they have suffered.

Professional Indemnity Insurance for Business & Management Consultants can help to provide cover in the event that you are alleged to have been negligent in your professional service to your client, including giving poor advice.

Example Claim

A Management Consultant was engaged by a company to help with a restructuring project. The client was advised by the consultant that the work should mean that the client could see an immediate cost saving of £50,000 per annum. Unfortunately, the company actually lost more money as a result of the restructure and began proceedings against the consultant, claiming that he had miscalculated by likely effect of the restructure. The consultant had professional indemnity insurance cover in place and was able to leave it to solicitors to defend his position. The claim eventually settled for £25,000 with a settlement of £15,000 to the client and £10,000 in solicitor’s costs. It’s worth knowing that even if you’ve done nothing wrong, and your client’s allegations are entirely unfounded, you will need to defend these claims professionally. In doing so, you’ll have to engage specialist legal advice – and this costs serious money!

Contact us today for further advice and guidance on PI Insurance for your business.

Professional indemnity insurance for Business & Management Consultants

  • Company Size – this will be one of the major factors that an insurer will look at when determining the price to charge for your insurance. This can be established in two ways, the gross annual income of the company and the number of partners/directors/employees.
  • Qualifications and experience – insurers will be interested in understanding how much experience that you have in this particular profession. If you have less than five years’ experience, then they may wish to see a copy of your CV to ensure that you are comfortable with the risk.
  • Type of work – insurers will want to know the split of your annual income derived from each discipline that you get involved in.
  • Retroactive exposure – does the business have an exposure to claims arising from past work, whether in the current business or a previous company?
  • Claims experience – the claims experience is an important factor in the assessment of a risk. This information reflects on the type of work carried out by a company. It also reflects the quality of the company’s work, experience, staff & internal risk management.

A typical Professional Indemnity Insurance policy for Business & Management Consultants will normally cover the following areas:

  • Breach of Civil Liability
  • Negligent act, error or omission
  • Unintentional intellectual property rights infringement (other than patents)
  • Unintentional breach of confidentiality
  • Unintentional defamation
  • Loss of third-party documents or data
  • Computer virus transmission
  • Negligence of sub-contractors
  • Bodily injury or property damage arising from breach of professional duty
  • Defence costs
  • Irrecoverable fees
  • Court attendance costs

Your policy coverage may vary between insurer.

Professional Indemnity

  • Professional Indemnity provides cover for claims that arise as a result of the work you have completed or advice you have given.

Public Liability

  • Public Liability provides cover should members of the public receive an injury or property damage due to your work. This protects your business should a compensation claim be made, also covering any legal costs that result from this.

Employers’ Liability

  • Employers’ Liability provides cover for compensation claims and associated legal costs, arising from employee injury or work-related illness.

Cyber Insurance

  • Cyber Insurance provides support in the event of cyber-crime and unintentional data breaches, offering cover against the cost of revenue and fines.

Directors and Officers

  • Directors and Officers insurance policies protect you financially against any claims that are made against you personally in your position as a director, partner or officer of your business.

Legal expenses insurance

  • If you were involved in a legal battle, knowing that any money you spend on legal bills would be reimbursed could make all the difference. Legal expenses insurance does just that. It ensures that your business remains financially stable after a legal case by helping to compensate the business for incurred costs.

 

Contact us to find out more about the right cover for your business.

Even if you have done nothing wrong, and your client’s allegations are entirely unfounded, you will need to defend these claims professionally. See how we helped a client here.

PI insurance – Everything you need to know

Professional Indemnity Insurance covers legal expenses incurred in defending a claim against you, even if the claim is false. It will also cover the compensation awarded, should they win their case, and the cost of any losses that they incurred as a result of your negligence.

If your business ceases operations, there is still a chance that a claim could be made against you in the future. PI Insurance can provide run-off cover to ensure that these claims are still covered and you are still protected.

You can buy short-term PI Insurance cover, but it comes with a significant risk that must be considered.

Professional Indemnity Insurance works on a claims made basis, meaning that the insurance policy that you hold at the time the claim is made is responsible for the claims and any associated costs. If you cancel the policy after your contract has ended, and a client then makes a claim against you after this time, you do not have any insurance to cover this and will be solely liable.

You must hold insurance at both the time the incident occurs, and the time that the claim is made, to be protected.

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R K Henshall & Co Ltd, The Grove, Mill Lane, Wheelock, Sandbach, Cheshire CW11 4RD.

Copyright © Hensure | Hensure Business Insurance Consultants is a trading name of RK Henshall & Co Ltd. www.rkhenshall.com. RK Henshall & Co Ltd are authorised and regulated by the Financial Conduct Authority. Registration Number: 308865. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, A.Brown FCCA. Company Secretary: A.Brown FCCA. www.fca.org.uk. Written quotations, policy terms, conditions and exclusions are available on request. Privacy policy, Cookie policy, Terms, Complaints Procedure, Consumer Duty Statement

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