The Risk of Advice in Global Security Consultancy
Global security consultancy is big business
Global security consultancy has huge revenues. Private security companies are hired for complex and high-risk security advice in emerging markets such as Africa. While these security companies advise their clients to assess risk and manage their security strategy, they often overlook their own risk in giving professional advice. Despite best intentions, events out of their control may result in security breaches for their clients. Here is where a professional indemnity insurance policy, provided by a specialist commercial insurance broker comes in.
There is a risk in giving advice and global risk consultancies are doing just that. They offer advice on protection to businesses whose staff operate in extreme environments and undertake high-risk occupations and tasks. Although it’s the business clients final decision to implement such advice, the risk of a security company has given advice that results in a breach or even worse, injury or loss of life; may cost the risk consultancy dearly. The major risk for any global risk consultancy is often the potential errors and omissions that may occur from the advice and guidance that they give as part of their service. As an example, a security firm from the UK wins such a security contract in Africa to protect oil and gas installations and its staff. This firm prior to and during the contract provides risk assessment advice, recommendations for security and its subsequent implementation. In the event of a security breach due to error or omission, the security firm could become liable and the ramifications are potentially severe. Where do I find security insurance in Africa?
Security consultancies acting globally need an insurance brokerage partner with a speciality in understanding the necessary professional indemnity coverage. Take for example, Africa. It is one of the fastest growing risk consultancy sectors, and UK firms in this sector are keen to provide security consultancy. SJL, with its expertise in that specialised sector, with the support of Lloyd’s of London, have both experience and expertise. A speciality insurance agent will understand exactly what is needed to give businesses the peace of mind that they so vitally need in this volatile sector.
Comprehending the necessary coverage is important. Not all professional indemnity insurance providers are created equal. Their coverage varies greatly and may not meet the mark. Consulting with an expert brokerage that can advise a global security consultancy will specifically address the risk they take in advising. The lack of or flawed professional indemnity insurance provides inferior coverage that can result in millions in liability if there are any errors and omissions.
Risk consultancy in emerging markets are an opportunity for UK firms. An international professional indemnity insurance tailored to address the risks will assure that the firms can be successful despite the high risk of advice.