Consultants, architects and any business that provides crucial advice can find themselves open to a wide world of risks in the modern era. Mistakes can cost businesses thousands of pounds and in some cases can lead to closures. Mistakes, of course, can happen and you’ll want to ensure that if one does you can rest assured that your business and your clients will be protected from the consequences. This blog explores how you can do that and the importance of professional indemnity insurance.
What Risks Do Consultants and Professionals Face?
Whether it’s potential data breaches, legal battles from negligent advice or breaches of contract, you can find yourself facing heavy legal costs and reputational damage if your trust with a client is broken. You have multiple touchpoints where you can be opened up to a dangerous situation and the impetus is on you to reduce the chances of any issues that you could face.
How Can Consultants Protect Themselves?
With a wide variety of dangers in play, it’s crucial you do all that you can to keep your business safe to protect your pocket and your reputation. So, what can you do to keep yourselves safe?
Stay Up To Date With The Latest Legislation
This may seem a silly thing to suggest, but ensuring you keep on top of the latest changes in your field can be the difference between your business blossoming or folding. Regardless of whether you’re an architect, accountant or another advice based business, laws and legislations can change leading to a completely different process than what you’re used to.
Find the relevant communities or publications within your sector so that like-minded individuals can keep you in the loop on how changes will affect you and what you can do to stay ahead of future tweaks.
Protect Your Data
Cyber has become a topic of debate within the past couple of years, as several high profile attacks have led to hefty fines and ransom demands. All lines of advice-based businesses will hold personal data of some kind, so it’s crucial that you are following the correct procedure to keep data safe.
Ensure you have back-ups in a safe and separate location, encrypt your data so even if it is found it cannot be accessed and only give access to those that require it. One of the most common ways that hackers enter your database is by exploiting wormholes that the computer companies plug with updates. By updating your PC when prompted you can reduce the risks of attack dramatically.
Train Your Employees To Follow These Rules
Whilst you’re living to the standards we’re listing and driving your business forward, your employees will need to embody these standards too. As an employee of yours, they are part of the reputation and need to continue to deliver upon the great work that you do.
Professional Indemnity Insurance: Protecting Consultants
Then of course, you’ve got professional indemnity insurance. There to protect you when you need it most if your protection attempts happen to fail. Covering against a world of risks, a policy can protect from the likes of:
- Breach of duty – if you breach your duty of care and find yourself with a legal battle against you, PI insurance can protect you from the financial costs that could otherwise be the end of your business
- Civil liability – this protects you from the responsibility of payment to an aggrieved party due to violation of civil law, tort of breach of contract. As a consultant, this can be crucial to keeping you safe
- Legal costs – if you’re deemed to have provided inadequate advice, services or designs that cause your client to lose money you could face legal proceedings. Legal costs are here to protect you from the costs incurred by these types of claims
With the costs of these legal proceedings able to snowball at quite a speed, a high-quality professional indemnity insurance policy could be the saviour your business needs during its darkest hour.
Want An Insurance Quote?
If you need a quotation for your professional indemnity insurance cover or just want some advice as to what type of cover you need, then get in touch with Coversure Nottingham today. You can call us on 0115 837 5592, email firstname.lastname@example.org or head here for our full contact details.