Real examples of indemnity protection for energy consultants

Our customer Liam owns an energy consultancy. A few months ago, he found his business facing a claim for allegedly providing a former client with advice that resulted in them over-paying for their energy.

Liam had a shock when his energy consultancy faced a claim for ill advice

The client, a law firm, claims to have been charged thousands of pounds more than the price they believe they should have paid for the energy used over a particular period of time. This overpayment was felt to have been caused by a lack of communication on Liam’s consultancy’s part around new energy tariffs.

While the claim wasn’t of monumental scale, sitting at just under £10,000, Liam is adamant that his consultancy was not in the wrong and the advice offered by them was 100% valid. He was therefore reluctant to offer any nature of compensation payment to the client, regardless of the fact it may have been simpler for him to settle the claim than to fight it.

Liam has professional indemnity insurance included within his Hiscox energy consultancy business insurance policy, and we were more than happy to step in to help him defend the case. This nature of cover is designed to protect businesses such as Liam’s, in the case that a client alleges that work or professional advice is sub-standard. This type of cover can prove invaluable to business consultants, due to the sensitive nature of their work.  

We began the process in house, with our Hiscox claims team dealing directly with Liam’s client, as an attempt to prevent it going to court. When the client pushed for legal proceedings to go ahead, we enlisted the help of qualified solicitors to defend Liam as the case went to trial. Fortunately, the case resulted in Liam and his energy consultancy being entirely vindicated.

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