Management Consultant PI Insurance

The appropriate limit depends on your client base and the scale of engagements you undertake. Sole practitioners advising SMEs may find $1 million to $2 million sufficient. Consultants working with government, ASX-listed companies or on large transformation projects should consider $5 million to $10 million. Your engagement contracts will often specify the minimum required.

Premiums typically range from $800 to $4,500 per year for sole practitioners and small consulting firms, depending on revenue, limit of indemnity, specialisation and claims history. Larger firms with higher revenue and broader service offerings will pay more. Contact Shielded Insurance for a tailored quote based on your specific circumstances.

Yes, provided the policy includes a retroactive date that precedes the date the advice was given and you were not aware of the potential claim when you took out the policy. Many policies offer full retroactive cover (unlimited retroactive date), while others set a specific date. This is an important detail to check when comparing policies.

Professional indemnity insurance covers claims arising from your professional advice and services, such as a client alleging your recommendations caused them financial loss. Public liability insurance covers claims for physical injury or property damage, such as a visitor tripping in your office. Most management consultants need both, but they are separate policies covering different risks.

Some policies extend cover to subcontractors working under your direction, while others exclude them entirely. If you regularly engage subcontractors or associate consultants, ensure your policy covers their work or require them to hold their own PI insurance. Shielded Insurance can review your policy wording to confirm your position.

Claims can be made years after advice was provided, so you need run-off cover (also called extended reporting period cover) after closing your business. Most policies offer run-off periods of one to seven years, and some offer unlimited run-off for an additional premium. It is important to arrange this before your final policy expires.

Yes, though a claims history will affect your premium and the terms offered. Insurers will want full details of the claim, including the outcome and any changes you have made to prevent recurrence. Shielded Insurance works with domestic markets, specialist underwriting agencies and Lloyd's of London syndicates to find competitive options for consultants with prior claims.

Professional indemnity (PI) insurance protects professionals and businesses against claims arising from negligent acts, errors, omissions or breaches of professional duty in the provision of services or advice. It covers legal defence costs, settlements and damages awarded against you. PI insurance operates on a claims-made basis, meaning the policy in force when the claim is made responds – not the policy in force when the work was performed.

Any professional who provides advice, designs, recommendations or services to clients should carry PI insurance. This includes accountants, architects, engineers, lawyers, financial planners, mortgage brokers, IT consultants, real estate agents, builders, health practitioners, management consultants and many more. For many professions, PI insurance is mandatory under Australian legislation or industry body requirements.

PI insurance premiums depend on your profession, annual revenue or fee income, claims history, limit of indemnity required and the scope of services you provide. A sole practitioner consultant might pay $500 to $2,000 per year for $1M cover, while a mid-size engineering or accounting firm could pay $5,000 to $20,000+ for $5M to $10M cover. High-risk professions like financial planning or building design attract higher premiums.

PI insurance typically covers legal defence costs (solicitors, barristers, court fees), damages or settlements awarded to the claimant, investigation costs from regulatory bodies, breach of professional duty, negligent acts or omissions, unintentional breach of confidentiality, loss or damage to client documents, and defamation arising from professional activities. Cover extends to past work through retroactive dates.

Yes, for many regulated professions in Australia. Mandatory PI insurance requirements apply to solicitors, financial advisers (AFSL holders), mortgage brokers, accountants (registered tax agents), architects, building practitioners in most states, real estate agents, migration agents, customs brokers, and various health practitioners. Requirements vary by state and professional body – check your specific obligations.

Professional indemnity covers financial loss caused by your professional advice or services – for example, an accounting error that costs a client money. Public liability covers physical injury or property damage caused by your business operations – for example, a client tripping over a cable in your office. Most professionals need both, but they cover fundamentally different risks.

PI insurance operates on a 'claims-made' basis, meaning the policy that responds is the one in force when the claim is first made or notified – not the policy that was in force when the work was performed. This is why continuous, unbroken cover is essential. If you change insurers or let your policy lapse, you may lose cover for past work. Run-off cover is available for professionals who retire or close their practice.

The limit of indemnity you need depends on your contractual obligations, regulatory requirements and risk exposure. Many contracts require $1M, $2M, $5M or $10M minimum cover. Regulatory requirements vary by profession – for example, AFSL holders have specific minimums set by ASIC. Consider your largest client contracts and the potential financial impact of a claim when selecting your limit.

Contact us at Shielded Insurance on 1800 97 98 99 or your insurer directly. With PI insurance, early notification is critical – you must notify your insurer of any claim or circumstance that could give rise to a claim as soon as you become aware of it. Late notification can jeopardise your cover. Never admit liability or attempt to settle a claim without insurer approval.

We access a broad range of Australian domestic markets, specialist underwriting agencies and international capacity including Lloyd's of London syndicates. This allows us to place cover for standard professions through to complex or hard-to-place risks. As brokers, we compare multiple options to find competitive and suitable cover for your profession and risk profile.