Legal cases might be more associated with solicitors, architects and private doctors, but the reality is that anyone who offers their professional advice for a living may also want to consider their legal liability. In recent years this has become relevant for the likes of graphic designers, advertising and marketing and PR agencies, and all sorts of independent consultants. Interim managers also fall into this category as there is the chance that they may face a significant legal challenge in the event that an assignment goes wrong and a client blames them for a loss of profit. But there are options and interim manager professional insurance is a straightforward form of cover which can guard an individual or firm against some common pitfalls.
Interim manager professional insurance will often include professional indemnity insurance, often simply referred to as PI or PII. This normally covers you against claims for loss or damage made by a client or a third party in the event that you make the mistake or are accused of making a mistake.
Because a hired consultant is expected to deliver a specialist professional service, clients may be minded to explore their legal options if they feel what you have done as part of a contract has been below the standard they expected or worse still has cost them money. For example, an interim manager might be hired to take over the department of a company which has been suffering following the resignation of its full time manager. However, should the assignment result in the department actually performing poorly and costing a client money, they may be minded to sue.
Interim manager professional insurance will even cover claims which are invalid. This means that the payouts are not conditional on the claim against you being approved by the court. Even if you lose a case, your legal bills and compensation will be covered, all the way up to the agreed policy limit.
Deciding how much protection you want is important when you take out the policy, as a payout limit which does not cover all your legal costs in the event of a case means you would have to pick up the difference. Interim manager professional insurance must include a limit which is appropriate to your business, so you can avoid being over or under insured.