There is no single Professional Indemnity Insurance limit that is suitable for every consulting business.

The appropriate amount of cover depends on the type of advice being provided and the potential consequences if something goes wrong.

What factors should be considered? #

These can include:

• Contractual insurance requirements.
• Type of consulting services.
• Maximum contract values.
• Size and type of clients.
• Potential financial consequences of incorrect advice.
• Work for government or large corporate clients.
• Industry-specific requirements.
• Previous claims history.

Is the value of my consulting fee the main consideration? #

Not necessarily.

A consultant may charge a relatively modest fee while providing advice that influences a much larger commercial decision or project.

Potential liability can therefore be significantly greater than the fee earned from the engagement.

Should I simply choose the limit required by my client? #

A contractual requirement can be an important starting point, but it should not automatically be treated as the appropriate limit for the business.

Some contracts may also request limits that are higher than necessary or difficult to obtain.

Webber Insurance can review the contractual requirement against the actual risk and available insurance options.