Why do management consultants need insurance?
An unhappy client
Even though you run focus groups and conduct sharp data analysis to underpin decisions, a client claims your advice about their leadership caused them to lose customers to a competitor. When your solution amasses unforeseen staffing costs, clients question your integrity and choose to take legal action against you for negligence – although your research was thorough, key operational metrics were overlooked. Building professional indemnity insurance into your management consultants’ cover can help with legal costs for defending the case and any resulting settlement.
Hackers demand a ransom
You open your laptop to update your notes on a new strategy for one of the firms you work with only to find your system has been hacked. Not only that, but you’re now facing a ransom demand from cybercriminals who threaten to inform your clients about the breach and publicise the data. Cyber and data insurance could form an important aspect of a policy for any management consultant. This type of cover can give you access to our cybercrime experts and help to pay the ransom.
A loose wire lawsuit
While visiting a new client to onboard them into your consultation process, one of their employees trips over the laptop power cable you’d misplaced. It doesn’t seem too severe – however, they sustain a broken wrist and hold you responsible for their time off work and for the inconvenience of the injury. With public liability insurance cover as part of your policy, you can receive assistance with the legal costs of the case, plus the resulting settlement. This takes the financial pressure off, helping you to keep consulting.
What insurance is available for management consultants?
If you’re not sure what you need, tell us a little more about your work as a business or management consultant. We’ll build your quote and help you to explore any other insurance needs.Build my cover
Insurance for management consultants: FAQs
How much professional indemnity insurance do management consultants need?
The amount of professional indemnity (PI) cover you may need will depend on the nature of your management consultancy and the type of clients you advise.
There are a number of questions you may need to ask before you make this decision, considering the size of the organisations you deal with and the industries they operate within.
Professional indemnity insurance may be an important type of cover for management consultants as giving advice is at the heart of what you do.
Read our FAQ guide for more information on how much professional indemnity insurance you need.
Do you provide proof of cover?
Yes, we understand that proof of cover can often be required before you start a contract –so you’ll receive documents via email which provide proof of cover. It’s possible to buy your management consultant insurance online within a matter of minutes.
How much is insurance for a management consultant?
The price of an insurance policy for a management consultant is entirely dependent on how you tailor your cover and which covers you opt to include.
Our quote process is flexible, so the cost is too – however, Hiscox business insurance quotes start from £9.80 a month*. Build cover and we can work with you to pinpoint your requirements.
Read our FAQ for more information about how much business insurance costs.
*Figures based on an average of at least 10% of our customer base between October 2020 and October 2021
What’s the difference between professional indemnity and public liability?
Professional indemnity insurance relates to service-based complaints, while public liability insurance helps if someone faces an injury or property damage on your watch.
Professional indemnity steps in if the complaint or allegation comes from a client and is related to work you provided, while public liability insurance can cover you if a member of the public files for compensation.
Both insurance types can be beneficial for management consultants who need to defend their business from compensation claims.
Learn more about the difference between professional indemnity and public liability insurance.
Related articles and guides
How to set up as a management consultant
Going it alone can be daunting, but rewarding – this guide to setting up as a management consultant provides five key steps to consider.
Finding resilience through failure
Watch as business management consultant Stephen Newton discusses finding resilience through failure as part of our unskippable minute series.
Common PI risks for management consultants
Management consultants can face risks relating to professional indemnity – discover the common PI risks and how insurance can help to mitigate them.
The strength of vulnerability in business
As part of our Unskippable Minute series, Anju Solanki explores the role of vulnerability in business leadership.
Four business metrics every consultant needs to understand
Possessing sharp strategic instincts is no longer enough in the Big Data era. Bernard Marr lists four key management consultancy performance indicators you should know.
How artificial intelligence might affect management consultants
Artificial intelligence (AI) is automating many industries – Alex Wheal suggests AI could help management consultants by taking care of repetitive tasks.