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Consultancy insurance should be a key consideration for anyone working providing advice or professional consulting services to their clients.
Running your own business can be rewarding, but it also comes with associated risks. Even with the best of intentions, advising clients doesn't always go smoothly. An error in a piece of work for a client, an accident at the office, or the theft of a computer could put your business under severe financial strain.
Our consultant insurance can cover you against such unforeseen events, giving you peace of mind that if something unexpected were to happen, you will be covered.
Cover at a glance:
- Trusted cover for risks associated with various consultancy professions and industries
- Protection for breach of confidentiality and defamation
- Suitable for business, HR, IT and marketing consultants
What is consultant insurance?
As a consultant, you’re hired to provide professional advice to help your clients improve their business. Clients can sometimes be demanding, as they’re expecting positive outcomes off the back of your recommendations. However, sometimes things don’t go to plan and whether it’s justified or not, you could end up potentially facing a lawsuit.
This is where insurance comes in as a safety net. Consultancy insurance is designed to cover the potential risks you face as a consultant. Products can be added or removed and tailored to meet your specific needs.
If you’re a business consultant who offers cost effective solutions to streamline an outdated supply chain and costs rise following your recommendations, Management & Business Consultant insurance can protect you from any legal fees and compensation payments that could arise. Similarly, Software Consultant insurance can cover you for a software recommendation that turns out to not be fit for purpose, and HR Consultant insurance for implementing human resources policies that don’t meet legal requirements.
With over 25 years’ experience, we specialise in offering insurance for the self-employed. Our insurance for consultants can take care of your risks, leaving you to do what you do best: being an expert in your field.
Cover starting at
£5 a month*
*Price based on a management consultant requiring £1 million of public liability insurance.
Do consultants need professional indemnity insurance?
Professional indemnity insurance should be a key consideration and element in your policy. It covers the cost of defending your business against allegations of professional negligence and any compensation subsequently awarded against you. So, if you give your client incorrect advice or make a mistake in a business plan, and the client suffers financial loss, you won’t have to pay legal fees and any damages yourself. Professional liability insurance for consultants cover is available with limits ranging from £50,000 to £5m and can act as a safety net for all home consultants and advisors
Do I need insurance to be a consultant in the UK?
In the UK it’s not a legal requirement for consultants to have insurance, however it’s worth considering for a peace of mind, as it can act as a safety net. A client can bring a claim against you for anything from making a mistake in a report to a data leak to an accident on your premises. And if they make a claim against you and you don’t have insurance for consultants, it could put a financial strain on your business.
In addition, many large businesses will only work with consultants who are covered by professional indemnity and public liability insurance. This ensures that if something goes wrong and they make a successful claim, your insurance company will pay out compensation.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Some of the consulting professions we cover
What does consultant insurance cover?
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Public and product liability insurance
Public and product liability insurance covers the cost of defending your business (including damages awarded against you if unsuccessful) if someone is injured, or their property damaged, which arises from you going about your business or supplying products. This is an important cover for consultants that regularly deal with clients or members of the public. Limits range from £1m to £5m.
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Employer's liability insurance
Employer’s liability insurance is a legal requirement if your business has employees. It covers your business against claims for injury or illness suffered by employees arising from their employment. Cover for £10m.
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Legal expenses insurance
Commercial legal expenses insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided for the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.
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Directors and officers insurance
Directors and officers insurance covers the costs of defending you as a director or officer of your company against allegations of wrongful acts and any damages subsequently awarded against you. Cover is also provided in respect of the legal costs and expenses of defending actions for disqualification as a director, investigations and extradition proceedings. Limits range from £100,000 to £5m.
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Office insurance
Office insurance covers your office buildings, office contents and computer equipment against accidental damage (including theft) whilst on your business premises. You can also choose to add cover for business equipment (such as laptops and mobile phones) whilst off your premises and for loss of income and/or additional trading expenses following events such as damage to your property.
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Occupational personal accident insurance
Occupational personal accident insurance provides a weekly payment if you are unable to work due to temporary total disablement (subject to a 14-day deferment period) due to an accident at work, or when travelling to and from work. In the event of loss of limbs, sight, speech, hearing, permanent total disablement or death, a lump sum would be paid out. You should consider this cover if you would struggle to maintain an income following an accident that left you unable to work. Limits from £100/week to £500/week for temporary total disablement (£25k lump sum to £100k lump sum for permanent total disablement).
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Cyber and data risks insurance
Cyber insurance pays the costs of restoring data and equipment, informing clients, meeting ransom demands and loss of your net profit following a cyber-attack. It also pays your legal defence costs and damages you are legally liable to pay to other parties. If you hold confidential information about your clients and their projects on computers and other internet connected devices, you should consider to this cover.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much does consultant insurance cost?
Costs for consultancy insurance can vary. At Markel Direct, we offer consultancy insurance from £5 a month. Consultancy insurance is not a one-size-fits-all product. Whether it’s Marketing Consultant insurance for yourself or IT Consultant insurance for a team of consultants, our policies are personalised for you, so the price of your policy will reflect the level of consultant insurance coverage you require.
Our simple quote system will ask about your business and build a policy around it, offering you covers that may be of interest. Cover starts at £5 a month* with the option to pay for your policy over 10 interest free instalments, and you can choose to buy all or just some of the covers quoted, so you will only ever pay for the cover you want.
*Price based on a consultant requiring £1 million of public liability insurance.
Indicative quotes
Business consultant
- Limited company
- 1 employee
- £106,000 turnover
- Harrogate
- (£337.68/yr)
- £33.77/mo
- Professional indemnity £1m
- Public liability £1m
- Legal expenses £100,000
- Employers' liability £10m
Ecological consultant
- Sole trader
- 0 employees
- £45,000 turnover
- Birmingham
- (£382.68/yr)
- £38.27/mo
- Professional indemnity £1m
- Public liability £1m
- Portable equipment £5,000
- Employers' liability
Training consultant
- Limited company
- 1 employee
- £79,000 turnover
- Nottingham
- (£189.28/yr)
- £18.93/mo
- Professional indemnity £50,000
- Public liability £1m
- Legal expenses
- Employers' liability £10m
*Final price payable is subject to underwriting criteria and acceptance. AI images are used on this website to depict example customer types. Any resemblance to an actual person is purely coincidental.
Ready to build your quote?
Our simple quote process will help you to find the right business insurance for your individual needs.
Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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What insurance do consultants need?
Consultants need a range of insurance covers to protect them in different scenarios. The type of consultancy business you run will determine which types of cover you need. For example, if you have employees, you’re legally required to have employer’s liability insurance, and if you have business premises, you may want to add office insurance.
Read the ‘What does consultant insurance cover?’section above for an in-depth look at your options.
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Do freelance consultants need insurance?
Yes, freelancers need professional insurance for consultants. Not only will your policy protect you from the risks associated with working in the consultancy industry, but it can also help you to win contracts. Many large businesses will only work with freelance consultants who have professional indemnity and public liability insurance in place as it makes it easier for them to get compensation if something goes wrong.
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I need professional indemnity insurance to secure a contract - do you provide proof of cover?
Yes. If you purchase your policy with us, your documents are emailed to you instantly and include a dedicated 'Confirmation of Liability Insurance' document - detailing the cover you have with us - which you can present to agencies and clients as proof of consultant insurance cover.
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What limit of cover should I choose?
Many clients and industry bodies with regulatory requirements will require you to have a minimum level of cover for you to undertake a contract, so it's worth checking this before you arrange consultant insurance cover. If you're unsure, or it's the first time you have arranged cover, give some thought to a worst-case scenario and the likely costs involved in putting your mistake right. We offer a range of limits on insurance, so you're sure to find the right cover for your business.
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Is my past work covered?
We cover past work if you have held professional indemnity insurance uninterrupted prior to arranging your policy with us.
If there was a period where you did not have professional indemnity insurance in force, we are unable to cover past work - for example, you have never arranged professional indemnity insurance before, you chose not to renew a previous policy, or you cancelled a previous policy at the end of a contract.
If you require further clarification, don't hesitate to call us on 0800 640 6600.
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What's the difference between professional indemnity and public liability
Professional indemnity insurance covers against allegations of professional negligence - which means it would cover you if you were to make an error or mistake in a piece of work for a client.
Public liability insurance for consultants covers against allegations of injury or illness caused to third parties by your negligence. This includes many of the trips and falls that are associated with personal injury claims. In addition, public liability insurance covers against damage to third party property - for example, if you were to damage a client-owned laptop or smartphone.
As they insure against different scenarios, it's important you consider arranging both types of cover to ensure you are properly protected.
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Why should I choose Markel Direct's Insurance
Markel Direct has over 25 years of experience insuring contractors, consultants and self-employed professionals. We insure over 200,000 micro businesses and are highly rated by our customers at Feefo.com.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
To talk about your insurance requirements and better understand our cover, call us on 0800 640 6600 or get a quick quote online.
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How are Markel Direct regulated?
Markel Direct is a trading name of Markel International Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Find out more on the Financial Services Register.
We are a division of Markel International, a Lloyd’s of London market insurer that wrote gross premium totals of £2.4bn in 2023
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