Direct Line Insurance has undertaken some research that suggests many UK businesses have been left dissatisfied with advice they have received from accountants, property advisors and brokers for example. Many have lost money because the advice has been substandard and the insurance company has warned those in a position of responsibility to expect claims against them in the future.
The cost to Britain’s small and micro businesses is an estimated average of £20,842 in the past 12 months with one in five stating they have lost between £50,000 and £100,000, amounting to a total of more than £6 billion. The greatest culprits are said to be IT consultants, followed by management and marketing consultancies.Almost 50% of affected companies say they have been forced to make staff redundant as a direct result of poor advice, 34% halted expansion plans and more than 25% felt their whole business had been placed at risk.
It is clear that poor advice can be devastating for both the client and for the consultancy, who would be severely damaged by any litigation. Many of the small businesses answering the survey would have been small or micro businesses themselves…..