Management consultants’ insurance explained

OK, so let's get all our ducks in a row. We need to take a helicopter view and square the circle. That way we can make sure we're targeting the low-hanging fruit moving forward.

Oh puh-lease…

And that’s the problem with business jargon.

There might be something substantial, something valid in there but the message is easily lost – or dismissed altogether. And when the message gets lost (stick with the analogy here), so can your credibility...which is when fingers of accusation are pointed. It's also when management consultants' insurance can help.

Truth hurts

Frequently, your job involves seeing the clearer picture and getting down to the nitty-gritty. However, you can still face scepticism and even open hostility when communicating your findings and making recommendations to your clients. Even without all that jargon.

Even though they've asked for your help, that doesn’t mean you’re on to a winner straight away. Just because a client has made the choice to use you doesn’t mean they’ll simply accept whatever you have to say. They expect results and a return on their investment.

So, what happens if your glitzy presentation after weeks of detailed research, interviews and analysis falls on deaf ears? What if your client dismisses your findings and says they aren't worth the spreadsheet they're written on?

Worse, you run the figures and make a series of recommendations that your client then acts upon. Only things don't go to plan and they end up in a worse financial position than previously. Plus they say it's your fault.

It's at (bad) times like these that you need management consultants' insurance.

How management consultants' insurance helps

So, what are your realistic options if you're accused of not delivering what was asked or getting it wrong?

In truth, you don’t really have any. To avoid getting an unfortunate reputation as just a know-it-all charlatan, and to protect your livelihood, you’ll have to defend yourself against accusations of negligence.

You could pay for a solicitor (if you have money to burn), but it’s a far wiser and less costly option to buy a professional indemnity insurance policy instead. You might sleep easier at night too, just knowing it's there.

In the event of someone pointing the finger of blame in your direction, it'll meet your legal costs and pay for an expert to defend you. And, if it transpires you did miss something, it'll also cover any damages or compensation you’re liable for.

Not only that but you get the protection, expertise, and priceless advice that only a specialist insurer can provide thrown in for good measure.

Thinking allowed

Of course, it's always better to avoid trouble in the first place if you can. So what can you do to avoid running into problems?

Clear communication is the key.

It sounds obvious but find out what your client wants from the process before you start. You don’t have a magic wand and you can’t be expected to fix the unfixable, so your clients need to focus and tell you where they want to be. And you need to say if you can get them there.

Making sure they know what ‘success’ looks like makes your job easier – and less risky. If you both have something to aim for, it’s easier to determine what’s needed to get there (and manage it along the way).

Again, it might seem obvious but it’s worth documenting the project from start to finish. Having a comprehensive pre-project scope, a timeline dotted with achievable milestones, and regular update meetings with your client are givens.

Be transparent too. Make sure your client accepts your terms and conditions. Also, ensure project documents are easily accessible to all parties and get each stage (and the end result) signed off.

Take it from us: if and when things don’t go quite according to plan, you’ll need help from someone who really does speak your language.

You can get a quick quote for management consultants' insurance by clicking here. Or, if you have any questions, ring the team on 0345 222 5391.

Image used under license from Shutterstock.