Consultants

Professional Indemnity Insurance for Consultants

You have built up years of knowledge, working for other people. You may be looking for a new challenge in life. Perhaps you have been made redundant recently or been forced to retire. What about “going out on your own”?

You find many people are asking for your advice and expertise. Former competitors hear you are no longer employed, they ask if you would like to come in and consult on a special project. They offer you a short term contract with extremely attractive fees.

Starting your own consultancy business which offers an individual’s expertise to people who need it, is a growing area. Professional people build up huge amounts of skill, experience and knowledge. Why waste it? You are in control. Take the challenge.

However, there is a risk with offering advice as a consultant. If you make a mistake or do not provide the advice that is needed, you could be liable for the financial loss suffered by your client.

If an angry client who has suffered a financial loss based on your advice, may take legal action against you. The result is that you could have to pay for this loss. Not just this, but you may need to hire a lawyer to help defend you. Your client can also include their own legal costs and other investigation costs. If it ends up in Court, you may have these costs to pay too!

Being sued may seem unfair, but the fact is you are at risk for this happening if you are running your own business. The “buck stops” with you.

One way to make sure you are protected from such a loss impacting on your business is by purchasing something called Professional Indemnity Insurance.

This insurance protection can really help to offer a consultant like yourself, the peace of mind for both you and your client. It will make your client much more reassured and happier knowing that if any of your advice causes them a financial loss due to your negligence, that they will be reimbursed by your insurance company rather than getting very little from a bankrupt professional.

It will also help you of course, so that you can breathe easier knowing your Professional Indemnity Insurance will take care of any mistakes or even just allegations made by a disgruntled client. Your insurance company will be responsible for paying your client the amount they can prove you caused them to lose due to a breach of your duty of care. It will save you time and the additional expenses that you may have had to instead devote to defending the matter on your own.

This form of cover is the most important insurance coverage you will need as a professional consultant. You may also want to add business insurance or public liability insurance for additional protection but your first priority should be adequate professional indemnity coverage.

The cost of a Professional Indemnity insurance policy varies with different insurers, and so too does their cover. It is a good idea to consult an expert insurance broker to look around to find you the deal that suits your needs best. This will also save you time and money, and probably give you the best coverage in the long run because Insurance Brokers will compare not only Insurer’s rates but also their policy coverage.

Cooper Professional Risks Pty Ltd trading as CPR Insurance Services can do all this for you. They have access to over thirty different insurers including Lloyds of London so that any Profession can be catered for. Whether you are a small sole trader to a large consultancy business, we can find the right deal for you.

So call us for help. CPR are experts who will save you.

  

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