Consultant Insurance

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Business Insurance for Consulting Firms*

As consultants provide professional advice to clients on matters relating to business management, marketing , training, research, and other specialised areas, they require professional indemnity insurance to protect themselves and their business.

If a consultant makes an error, such as providing incorrect information, makes an omission in due diligence, or provides advice that leads to financial losses for a client, a client may seek to recover these losses from the consultant.

Whether you provide consultancy services to small or large organisations , councils or government, advise on workflow processes and procedures ,or provide strategic planning and change management services , you’ll need to be covered for professional indemnity and public liability.

Cyber Insurance may provide cover if a consultant’s networked computers are hacked, and confidential client data is stolen.

Management Liability Insurance should be considered for consulting firms with multiple employees that may be liable when things go wrong with Human Resources, Statutory Liability and OH & S.

Consultants may also face risks in relation to the commercial premises they operate from risks such as fire, perils, and theft or may be liable if a client slips and falls down their stairs, badly injures themselves and claims against them.

Fortunately, suitable commercial insurance for consultants may provide protection against financial hardships that could arise from poor advice, computer hacking, employee matters, accidents, property damage, or legal claims caused by your consulting activities.

Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

What Insurance Do I Need as a Consultant?*

Some of the major types of insurance covers available to consultants in Australia are explained below and include:

  • Professional Indemnity Insurance
  • Business Pack Insurance
  • Public Liability Insurance
  • Cyber Insurance 
  • Management Liability Insurance

Professional Indemnity Insurance for consultants *

Professional indemnity insurance is the essential cover for consultants.

Consultants typically provide professional services including but not limited to reviewing operations, identifying business issues and opportunities , providing recommendations and training, implementing changes to enhance growth and business performance.   

If a consultant makes an error, such as providing incorrect information, makes an omission in due diligence, or provides advice that leads to financial losses for a client, a client may seek to recover losses the consultant.

Professional Indemnity Insurance may help consultants stay in business by paying for legal defence costs, public relation expenses, privacy brief costs and financial losses if awarded against them.

Professional indemnity may help pay for your legal costs to defend yourself.

What may professional indemnity insurance cover for consultants?*

While policies vary from insurer-to-insurer professional indemnity cover for consultants may include:

  • Wrongful act, error or omission
  • Negligence
  • Inaccurate advice
  • Defamation
  • Fraud and dishonesty
  • Lost documents
  • Misleading or deceptive conduct
  • Unintentional infringement of intellectual property rights
  • Breach of duty

Claims can run into the hundreds of thousands of dollars or even millions of dollars, therefore it is important that an adequate level of cover is chosen to protect against major financial loss, which will not only have an impact on your business but could also impact your personal assets.

Types of consulting activities that may be covered with professional indemnity insurance*

  • Organisational Structure & Change Management
  • Strategic Business Planning
  • Workflow Processes and Procedures
  • Communications Consulting
  • Human Resources / OH&S / Staff Recruitment & Training
  • IT Systems Consulting
  • Marketing, Media , Advertising and Public Relations Consulting
  • Market Research
  • Business and leadership coaching
  • Career coaching
  • Corporate training

What professional indemnity insurance does not cover for consultants?*

Some of the risks faced by consultants’ professional indemnity insurance typically NOT covered include:

  • Claims and circumstances known before the period of insurance
  • Contractual liability
  • Intentional damage
  • Insolvency of the insured

Business insurance pack for consultants*

Consultants may be able to combine multiple covers in a single business insurance pack policy.

By ‘packaging’ their business insurance into a ‘business pack’ business consultants can potentially cover many of the risks their business faces in the one policy.

For example, if a consultant has a commercial premises, a business insurance pack may provide cover for buildings and contents if they are accidentally damaged by a defined event, such as fire, storm, impact damage, accidental damage, vandalism, or malicious damage.

Other typical inclusions for consultants with a business insurance pack are Public Liability & Products Liability Insurance.

If a client slips and fall down your stairs, badly injures themselves and claims against you, Public Liability Insurance may assist you.

Optional inclusions for consultants with a business insurance pack are General Property, Contents including Fit Out, Theft, Glass, Business Interruption and Machinery Breakdown

For example, computers may be covered if burgled, and loss of profits may be covered under business interruption if caused by a defined event.

Multiple office locations may be able to be covered on the one business pack insurance policy.

Cyber Insurance for consultants *

Your business’ computer system network contains confidential client data, which is a target for hackers.

Cyber insurance may protect your business if your client’s data is held at ransom, cyber extortion or even privacy breaches resulting from Cyber-attacks 

Cyber insurance may cover costs resulting from a cyber incident, including IT forensics, virus extraction, customer/client notification costs and public relation costs.

Help reduce the impact of damages from a cyber event with cyber insurance – and keep your consulting firm going.

Management Liability Insurance for consultants *

Management Liability Insurance may provide valuable protection for directors, for specified issues relating to Human Resources, OH & S and Statutory Liability.

Why do consultants need public liability insurance?*

Public Liability Insurance coverage is essential for all consulting operations.

People and property on site may be hurt or damaged due to accidents involving your consulting business activities.

Protections for consultants through public liability insurance in Australia generally include:

  1. Injury to other persons due to your accounting activities – For example, a client is injured when they trip and fall in your consulting premises.
  2. Damage to others property due to your business activities

Public liability insurance coverage may protect  consultants from claims that arise when others allege they are negligent.

A consultant’s public liability policy may provide a defence against the ensuing lawsuit when needed and may pay the damages sought by the injured party.

Public Liability Insurance may provide consultants with protection for slip-and-trip accidents.

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What are the costs of Consultants Insurance?*

How much does business insurance, including professional indemnity insurance, cost for consultants?*

Key factors in determining how much professional indemnity and business insurance will cost a consultant include:

  • the size and turnover of your consultancybusiness
  • the size of the clients you work for
  • number of staff
  • the optional covers selected
  • your claims history
  • Experience and qualification of directors/partners
  • Areas of practice
  • Fee Revenue
  • Breadth of Coverage
  • Indemnity Limit
  • Excess / Deductible

Typically, professional indemnity cover for consultants , is available in either $1million, $2 million, $5 million, $10 million, and $20 million.

The general rule of thumb is the greater the potential damages from the advice provided and/or the larger the business, the larger ($) sum insured.

Our helpful business insurance brokers may be able to help you find suitable and affordable professional indemnity and business insurance for your consulting business on 1300 542 573 

Why should consultants use an insurance broker in Australia?*

If you are a consultant deciding on whether to use an insurance broker for your business insurance, it is important to consider that brokers act in the interestsof you, not the insurer.

Direct insurers and agents act for the insurer This can be important; especially if you need to claim.

Brokers can help consultants by sourcing competitive quotes on policy inception, negotiate with the insurance companies to prevent or limit increases on renewal, remarket your policy to other suitable insurance companies where appropriate, talk to underwriters about policy wordings, industry classifications and terms, talk to insurance assessors during the claims process and repairers where necessary.

How do I get a consultants insurance quote?*

Simply TALK to a SMART Business Insurance broker on 1300 542 573 or contact us online for suitable and affordable professional indemnity and business insurance quotes for your consulting firm.