Case Study Management Consultants

Professional Indemnity insurance is an important part of many professionals' business risk management.
We asked successful professionals in key sectors about their business, and where PI fits into the work they do.

Fiona Shafer, management consultant and owner, Omega Blue Consulting Ltd

What does your business do?

I set up my own business consultancy Omega Blue in 2002. I offer strategic business planning and my work largely focuses on performance coaching with directors and the facilitation of peer-to-peer learning with Managing Directors of innovative, high growth businesses. My clients come from a wide range of sectors, including manufacturing, design and new media, education, retail, legal, public service and government.

What kind of risks do you have to think about in the day-to-day running of your business?

Firstly, my health and wellbeing - if I get run over by that proverbial bus! I need to ensure I have back-up if I'm unwell so I have associates who work with me and who could look after clients in my absence. Secondly, the risk of clients interpreting advice incorrectly, which may have damaging consequences for their business and lead to them bringing a civil liability claim against my business. Thirdly, issues that may arise around loss of data or technical issues with my own IT systems.

When you first set up your business, did you see Professional Indemnity Insurance as an integral part of set up costs or did you buy into it later?

I invested in PI from the outset, and it's actually a requirement of my membership of the Institute of Business Consulting. However, I also feel a personal, moral responsibility to have it too. We live in a very litigious society and it's important to have it for yourself and the protection of your clients.

What are the key benefits of PI cover for management consultants?

It protects us against making professional mistakes that affect our clients or clients misinterpreting advice given, with potentially damaging repercussions. I believe that my clients would absolutely expect me to have adequate cover when entering into a professional business relationship.

What aspect of your business is most open to risk?

My role as advisor. If I provided incorrect information, which a client acted upon and then their business suffered, it is likely that it would all come back to me. The two biggest risk areas are employment law and people issues – I only get involved in the diagnostic phase of these issues up to a certain point and then refer clients to an employment lawyer or specialist Human Resource professional.

What are your customers' greatest concerns, and how does PI help protect your reputation?

They want to feel confident that the job will be done professionally. The fact that I have PI shows that I am really serious about what I do and about providing the best possible service. I believe that strengthens my reputation.

What's the most interesting case of a negligence claim or horror story that you've heard of in your industry?

I can't think of any serious cases. I'm lucky that I work within a very professional and responsible peer network.