Management consultants provide quality advice to their clients to help improve organisational practices and processes.
As you provide consultancy services, you are at risk of potential claims in events when you are found responsible for any negligent act, error, or omission.
It is advisable for management consultants to hold some level of professional insurance protection. FD Beck Insurance Brokers can provide you insights as to what suitable insurance policies fit your needs as a management consultant.
Types of Insurance for Management Consultants
There are a wide array of business insurance policies. In your industry, you may need professional indemnity insurance and public liability insurance. Depending upon how large your business is and your individual requirement, you may also need other types of business insurance such as property insurance, business interruption, and workers compensation.
In many cases, professional indemnity insurance is compulsory before starting consultancy work. It is designed to deal with financial loss as a result of alleged negligent act, error, or omission from the services you provide. It covers professional legal costs associated with defending claims and damages.
An example is when your professional advice when providing strategic recommendations resulted financial loss to your client. If you client decides to legal action against your business, you can mitigate through professional indemnity. PI insurance will help indemnify you from not only the cost of compensation, but importantly the legal defence costs.
Also known as General Liability, this type of insurance may provide protection from allegations of injury or property damage caused as a result of your business activities. Whether incidents happen in your place of business or your client’s, you have the exposure in this regard.
It can help you in two ways: assists in medical compensation and associated legal action of the injury such as cost of defence and settlement, and covers the repair or replacement of damaged or lost third party property .
Key Exposures for Management Consultants
As a management consultant, there are potential issues where professional indemnity and public liability coverage might be useful.
Customise Your Management Consultants Insurance at FD Beck
With a wide array of business insurance policies, it may be difficult for you to find the most suitable cover. But we do understand that as a consultant or a professional in consulting business, you do have unique risks. That is why we take your requirements into consideration, as the level of cover you need may vary. Our team of qualified insurance brokers at FD Beck can assist you with insights and recommendations on the business insurance you need and customise them to suit your needs.
To get an idea of how much insurance products cost, please explore our online quoting tool.
1) How much do I need for professional indemnity insurance for management consultants?
This depends on several factors such as your clients and contractual requirements you have with them, your business size, the consultancy service you offer, and the level of cover you need. If you are unsure, then speaking to a qualified broker beforehand is advised.
In general, professional indemnity cover may be between $500,000 to $5,0000,0000. To know what is right for you, it will help to get a quote. You can talk to the right insurance brokers at FD Beck for advice and access to further information.
2) Do all management consultants need a professional indemnity policy?
PI insurance is recommended for professionals who charge fees for service or advice. It may not be a legal requirement in Australia, but as a marketing consultant or a freelance professional, it can help protect your reputation. For more information, watch this short video about Who needs professional indemnity insurance?
3) I have a budget for management consultant insurance. Can you create an insurance policy package based on my budget to ensure security?
Yes, we can help you create an insurance cover best suited to your business needs and according to your budget. It may also help to know what public liability covers in case you would need to add this policy in the future.