Issue link: https://htpgraphics.uberflip.com/i/392122
38 insurance to cover the type of work which you are performing. The level of insurance required will vary depending upon the type of work, the industry sector and possibly your client. If you are providing consultancy services to a US-based client then your potential liability could be much higher. Insurers and professional bodies of which you are a member will be able to give you guidance on the levels of cover usually required. Your client may include a requirement in the contract for you to have insurance in place. If you are providing consultancy services through your institution, then your institution will have insurance in place, but do check that it is wide enough to cover the type of services or particular piece of work which you are providing. As mentioned in Section 2, you should take into account the cost of your insurance premium when setting your fees for each consultancy assignment. Payment – Remember that risk is not one way. If you commit to a fixed fee, are you sure that you can undertake the work within that fee? If not, you will make a loss and so you may be better off with hourly rates. You run the risk that the client may not pay you! This may not have anything to do with the work which you have carried out for them. Whilst it is flattering to be asked to carry out consultancy work, you should generally either know the client or have looked into the client's background. Check that it has the financial means to meet your fees. You should have clear provisions in the contract as to how and when they pay you. Do you have to charge VAT as well (see paragraphs on p42 and p43)? It is common to include in the consultancy contract a provision allowing you to claim interest if payments are made late. You should also have the right to suspend the provision of the consultancy services if you have not been paid. Area of expertise – Only undertake consultancy work within your area of expertise. Do not be tempted to stray beyond it. You may be able to use your networks to plug the gaps or simply tell your client that you are not able to assist them with such work. Whatever you do you will only increase your risk if you take on work which is outside your area of competence. Whilst some consultancy work might be lucrative, you have to ask yourself how it will impact on your reputation and the reputation of your institution. If you are a cancer specialist then you have to realise that undertaking consultancy work for a tobacco company may well have implications for future research funding from cancer charities for you and possibly your institution. Managing Risk Section 6