"Running a consultancy business in the UK offers incredible flexibility and the chance to work across diverse sectors. However, with that freedom comes responsibility - particularly when it comes to protecting yourself from potential risks. Whether you're advising FTSE 100 companies or helping small businesses streamline their operations, having the right insurance cover isn't just sensible; it's often essential for winning contracts and maintaining your professional reputation."
"Professional indemnity insurance is arguably the most critical cover for any consultant. This policy protects you against claims arising from professional negligence, errors in your advice, or breaches of professional duty. If a client suffers financial loss because they followed your recommendations, they could pursue legal action against you and defence costs alone can run into tens of thousands of pounds."
Running a consultancy business in the UK offers flexibility and opportunities across diverse sectors, but also exposes consultants to significant legal and financial risks. Many consultants operate as sole traders or via limited companies, placing personal assets at potential risk from client claims. Professional indemnity insurance protects against claims of professional negligence, errors, or breaches of duty and covers defence costs that can reach tens of thousands of pounds. Clients, especially large organisations and government bodies, often require minimum cover levels (typically between £1 million and £5 million) as a condition of tendering. Examples of risks include flawed advice, data breaches, and physical accidents in home offices.
Read at Business Matters
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