Consultants are a valuable source for businesses because they offer a deep level of expertise that can help boost profits and improve sales. Consultants are not just limited to businesses; they can be doctors, architecture, professors and lawyers as well.
Being a consultant is tough because you are looked upon as a source of reliable information and guidance. However, mistakes are commonplace in different industries and consultants are not immune to them.
The Importance of Professional Indemnity Insurance
Consultants provide their clients with expert advice. Business consultants are essential because they guide managers about the steps that should be taken to help their enterprise grow.
However, when consultants make mistakes, it can land their clients into legal trouble. It is important to have professional indemnity insurance for such situations. Professional indemnity insurance can protect you against a legal case if your client suffers a loss, as a result of a consultancy error by you.
Sometimes clients follow instructions incorrectly or are insistent upon following instructions differently, which results in them experiencing a loss. Professional indemnity covers all your legal costs in case a client decides to sue you for negligence.
At times, the damages businesses are required to pay exceed more than they can afford and small-scale businesses are unable to pay when faced with these types of situations.
Professional indemnity insurance helps you feel more confident in your work, without having to worry about damage done to clients or having to face legal problems.
It also helps save your reputation because you’re able to quickly settle the case before it becomes an issue in the public eye.
Although professional indemnity insurance is used to cover negligence, it can also be used to protect against defamation, loss of documents, intellectual property and dishonesty.
If an employee of your firm accidentally loses important documents pertaining to confidential client information, it can land you in legal trouble.
Similarly, if an employee accidentally sends an email to the client bad-mouthing them, it can not only result in losing the client, but may mean having to deal with legal issues.
Since most business owners are busy and do not have time, professional indemnity covers legal representation as well.
If you are a consultant looking for professional liability quote or general liability insurance quotes, book an appointment with 365insurance today.