Management consultant insurance

There are a number of different factors that may influence the cost of professional indemnity insurance, such as the service provided, company size and revenue.

Make sure when requesting a quote, that the declared values of the business is accurate so the correct premium and cover for your business can be arranged.

Professional indemnity insurance covers up to $10 million.

Public liability insurance covers up to $20 million.

‘Claims made’ is a term used to describe an insurance policy that covers claims which are notified during the policy term. This may not necessarily be the same period in which the accused incident or error resulting in the claim occurred.

Professional indemnity policies provide a 'claims made' basis of cover because advice or service errors in many professions are often discovered weeks, months or even years after the mistake was made.

Therefore, a professional indemnity policy or 'run-off' policy must be in place for a claim to be met by an insurer.

It’s also important to note that, if the limit of indemnity was changed, it is the limit purchased when the claim is notified that applies, not the limit purchased when the work was completed.

Our team can provide support and proactively guide clients through the claims incident process.

Contact your Marsh representative to assist with lodging a claim.

Even if you deliver on all of your scope of a project, management consultants can sometimes be sued by clients if a business fails to achieve an overall objective.

Your legal liability does not always end when your contract ends. Strategy and initiatives can sometimes derail, regardless of the quality of your work and the effort you put into a project.

You might even reconsider your commitment to a client mid project, and decide to terminate for legal and ethical reasons.

Whether a claim made against you is reasonable, or not, the cost of legal fees alone can be expensive.

Professional indemnity can help with covered civil liability claims arising from your professional services. Examples in the supplied wording include breach of duty, privacy or confidentiality, defamation, lost documents and intellectual property infringement. Cover is subject to the policy terms, limits, exclusions and endorsements.

The supplied schedule includes areas such as strategy, organisational design, HR and recruitment, project management, marketing, procurement, systems analysis, business process improvement, health and safety consulting, and training. Your declared professional services and policy schedule determine what applies.

Professional indemnity is written on a claims-made basis. A covered claim generally needs to be first made against you during the period of insurance and notified as required by the policy. The applicable retroactive date and other policy conditions also matter.

Public liability generally deals with specified claims involving personal injury, property damage or advertising liability connected with the business. This excludes professional liability. Professional advice exposures are addressed through professional indemnity, subject to policy terms.

Not necessarily. Whether cyber-related cover applies depends on your policy schedule, wording and endorsements. Separate cybersecurity insurance can also be considered based on your business's risks.

From 10 December 2026, certain APP entities will have additional privacy policy obligations where automated decision-making meets the legislative criteria. Consultants working with relevant systems or personal information should consider how these requirements may affect their work.

The supplied wording contains run-off provisions, but an extended period of cover is not automatically guaranteed in every situation. Any extension can depend on the circumstances, insurer agreement, policy conditions and additional premium.

Tell Marsh as soon as possible if a claim is made against you or you become aware of circumstances that may need to be notified. Your Marsh representative can help you lodge the claim and guide you through the process.