Insurance for Consultants

As a consultant, you rely on your clients, and they in turn rely on you. Every consultant is different which is why your business insurance is different too. By choosing a tailored protection plan you can protect yourself if something ever goes wrong.

A single premium, renewal date and set of documents means that getting insured is as quick and as simple as it should be – leaving you to get on with the important stuff.

Professional indemnity insurance

It’s likely that the companies you work for will require you to have some insurance in place. Professional indemnity insurance is a vital protection for businesses that give advice or offer professional services. It will cover you if you give bad advice which results in a financial loss for the company you’re working for.

You can buy professional indemnity insurance as part of a combined policy, or as standalone cover.

How much professional indemnity cover do I need?

It’s always worth asking your customers and clients how much cover they need you to have, to ensure you’re protected in the unlikely event that something goes wrong.

Making sure you have the right level of cover before you start a job is crucial. If you need to change your level of cover, let your insurance provider know as soon as possible. Underestimating the amount of cover you need could mean that any claims you make might not be paid.

Public liability insurance

Public liability insurance covers your business against compensation claims and any legal costs if a third party suffers injury or property damage while on your premises, or while you’re working on theirs.

How much public liability insurance do I need?

Simply Business’ public liability insurance policies offer a minimum level of £1m for consultants. Depending on the nature of your business, you might require a higher level of cover. It’s best practice to check your policy when you take on a new job or contract. For example, companies working on government contracts are required to have a minimum of £5m or even £10m in public liability insurance.

Employers liability insurance

If you’re self-employed, a consultant or an independent contractor that works for other organisations there’s no need to have employers’ liability insurance. However, if you’re a limited company with more than one director you will need to have employers’ liability cover.

Even if you employ short term staff, casual workers or contractors, you’ll need to have employers’ liability insurance. This will allow you to deal with any clams from employees who may have been injured or become seriously ill as a result of working for you.

How much employers’ liability cover do I need?

By law, you’re required to have an employers’ liability policy with a cover limit of at least £5m (if you need it). If you don’t have this in place you could be fined up to £2500 per day you don’t have cover.

There are some exceptions to this rule, most public organisations and businesses that only employ close family members (if they’re not incorporated as limited companies) don’t necessarily need to have employers’ liability insurance.