How Choosing Public Liability Insurance Boosts Your Reputation and Attracts Clients.
As a management consultant, in addition to diligently honing your skills, you should focus on ensuring that you appear as a competent, trusted ally that businesses can count on for effective solutions to their needs.
Also, a crucial part of creating that reputation or brand image for yourself is giving the impression that you are fully attuned to challenges, no matter how large or complex.
Well, the big question that a lot of people don’t ask is…
How exactly do you do that?
Our answer is…
You make sure your reputation in the market is positive in a variety of ways, you get feedback from happy customers through organic reviews, or you demonstrate your knowledge and skills through a blog where you share your ideas or industry updates.
There are many ways you can manage your brand image and reputation, and all of these go a long way in convincing a potential client that you are exactly the consultant they’ve been looking for.
However, there is one thing that can make or break a deal for them.
How prepared are you to weather a setback – this is a question most companies will actively ask themselves when considering hiring you as a consultant?
There can be many setbacks that a consultant must contend with. You may have a shortage of staff to attend to the customer’s needs; You may lack time to get the job done and so on.
But the biggest and most crippling challenge that people in the insurance industry risk facing is one that can arise after you’ve started a job, or even after you’ve finished it — the risk of a customer being dissatisfied with you work or believe your work has harmed their business.
The legal risk
No matter what type of consulting business you run, the risk of a lawsuit is always one you should be prepared for.
Remember that a customer can file a lawsuit against you if you feel that you have not lived up to their expectations.
It is not necessary for them to think that way. You may have done more than can reasonably be expected of you and the customer may still have a claim against you.
In a situation where you are faced with a legal claim, liability insurance comes to the rescue – to cover your legal fees, which can be quite a hefty sum.
Unfortunately, many consultants make the mistake of ignoring insurance at the outset.
Usually this happens because the consultant is extremely confident in his abilities and believes that there will never be a situation where a client will be dissatisfied.
Again, remember that a client can also be INADEQUATELY dissatisfied with your work. You should therefore secure your consulting business with the right consultant liability insurance.
When should you consider liability insurance?
This is the question many management consultants ask themselves when they are advised to take out liability insurance in their area to cover possible legal costs.
Well, the answer is that it’s best to get your coverage as soon as possible so your business is truly protected.
Remember that the insurance only covers projects that you started after the insurance coverage took effect.
If you previously started a project and it continued after your insurance coverage was completed, the project may still not be covered by the insurance plan. You cannot predict which customer will make a claim against you, so there is no reason to delay insurance.
There’s another good reason for you to think about insurance the right way – it boosts your credibility in the eyes of your future customers.
Let’s imagine a scenario where you are making an offer to a large customer. There is a good chance they will ask about your legal preparedness, expecting you to be fully prepared for any eventuality.
No company will want to take the risk of hiring a consultant whose business could collapse for lack of funds if a former client files a lawsuit against him.
Knowing that you have insurance that covers your basics shows the potential client that you are a competent business owner – a trait that is very important to them.
Thinking about legal protection insurance right from the start is also good for you in other respects.
As an independent consultant, you don’t have the luxury of unlimited finances that large corporations enjoy. That means the amount of money you can afford to pursue litigation is severely limited.
However, you cannot leave a claim unchallenged as this would appear as an admission of guilt.
Since you don’t have great financial resources and can’t afford to use too much money from your business for legal expenses, the only option is to have a solid insurance plan to cover you so that it will absorb your litigation costs and your business saved from bankruptcy.
Do all self-employed people need public liability insurance?
Yes. The decisive factor for the need for public liability insurance is not your turnover, but the question of whether you come into contact with the public or not. If your activity brings you into the vicinity of the public, then you must also take out business liability insurance as a self-employed person. However, many insurance providers take your sales into account when calculating your insurance premium.
Securing your consulting business with liability insurance should be a priority for you.
Postponing this can be a dangerous mistake; Finally, legal fees can prove to be extremely onerous expenses, and without insurance to cover them, there’s a good chance your entire business capital will be expended fighting your litigation.