What can go wrong?

A broad church, this area can include anything from executive coaching through to interim financial management. The central risk is the same: the client trusts in and relies on the expertise of the professional, the advice they give turns out to be incorrect or negligent and the client suffers a loss or damage as a result. Sometimes, however, a simple difference in opinion or expectation can cause friction and ultimately a claim against the consultant – whether unfounded or not – which needs to be defended.

Cover considerations

Depending on the specific nature of the activities undertaken, premiums can be extremely low and cover wide but it’s worth seeking expert advice – for example many wordings will exclude bodily injury or property damage – to ensure the business is properly protected.

What are insurers looking for?

Experience and a good claims history are expected and the insured should also be able to demonstrate they protect themselves from misunderstandings with their client by, for example, using standard contractual terms and conditions and following up key decisions and directions in writing.

Insurers may ask for details of largest contracts and assurance that the income from any single client isn’t relied on disproportionately as this can lead to ‘undue influence’.

They will also be interested in any access to client money.