What is consultant insurance?
Consultant insurance is not one policy, but rather a term used to describe various products that can provide financial protection in a range of situations.
Professional indemnity insurance, which covers your business for claims of professional negligence, will likely form the cornerstone of your policy. It can help cover your legal and compensation costs if, for example, you suggest a particular course of action that results in your client suffering a financial loss.
Public liability insurance should also be considered in your policy. It can protect you in the event that a member of the public is injured or killed, or if their property is damaged or lost or damaged as a result of your consultancy work.
Employers’ liability insurance is legally required if you employ any staff in the UK who is not a close family member. This insurance can help to cover the compensation and legal costs that might arise if a member of staff were to raise a claim against you. You’ll need at least £5 million of cover. If you fail to have this in place, you can be fined £2,500 a day.
You might also add personal accident insurance, which can offer a small payout to help cover some loss of income and medical costs in the event of an accident that prevents you from working for a while. Personal accident insurance can also provide some compensation to your beneficiaries in the event of your death.
Equipment cover may also be worth considering to protect office equipment, such as laptops and phones. This insurance can provide compensation if your office equipment is lost, stolen or damaged.
Finally, while it’s not always included as standard in a consultant insurance policy, you might want to consider the benefits of cyber and data insurance cover. After all, if you have access to valuable client data, and there is a data leak, you could be facing a major claim.