Management Consultants Insurance: Managing Litigation
Management Consultants Insurance: Managing Litigation
Whilst management consultants all over the UK happily advise their clients on how best to structure and operate their businesses, many continue to ignore the increasingly likely prospect that a disgruntled client may one day choose to seek recompense through the courts if something goes awry.
For example, one management consultant acted as an interim finance director for a customer. The customer subsequently sued when their company suffered a downturn. They claimed the management consultant's strategic advice was the cause of their financial difficulties.
Whether their claim is justified or not is somewhat irrelevant given that a huge legal bill will be awarded to both parties - whatever the outcome of the actual case. The sensible solution to any future threat of litigation is to take out an adequate professional indemnity insurance policy as soon as possible.
Management consultants insurance offers protection against claims for loss or damage by a client or a third party if a management consultant has made mistakes or is found to have been negligent in some or all of the services that they have provided. Give the scope of the management consultant's role, these can be wide-ranging.
One case involved management consultants advising on a large restructure who found themselves in trouble when their redundancy advice was not completely correct. The tax office found the redundancies could not be classified as such as the company re-advertised the positions shortly after. This meant the company had underpaid their tax.
Another case involved a management consultant who was employed to undertake a management survey of a large company. They had been collecting data for four months when disaster struck and the computer server that held this data failed and the data was lost.
All insurance policies of any type carry details of the insured risks, exclusions and conditions. Management consultants insurance is no different policies must be tailored to suit from the outset. Management consultants should consider potential liability timescales and who the sort of clients they may encounter - a freelance working with medium-sized clients may want a different level of protection than a large consultancy dealing with international firms with large turnovers. ENGINEER INSURANCE: Mistakes Can Be Costly. Very Costly Saving Money on Business Insurance Watch Uruguay vs France live exclusive Fifa World Cup 2010 live online on pc | Fifa World Cup 2010 live coverage on pc Don't Accept The First Insurance Policy You Are Offered Taking Out Taxi Insurance Extra Considerations for Your Motor Trade Insurance Housing Chickens Takes Some Basic Planning Watch St. Jude Classic presented by Smith & Nephew Leaderboard PGA Championship Live Stream Broadcast Online coverage Live golf tour June 10 - Jun Watch LPGA State Farm Classic Championship Live Stream Broadcast Online coverage Live golf tour June 10 - June 13, 2010 A Guide To Choosing Your Wedding Insurance Bajaj Allianz General Insurance-Mediclaim Policy Managing Your Insurance Portfolio Watch Live Coverage of US Open Golf