Why do Consultants need it?
As a consultant, you provide expert advice to your clients that they use to make decisions and potentially transform their business. Working this closely with clients creates risks which could have a big impact on your professional reputation and the future of your business. Now might be the time to shield yourself against the unexpected, so you can focus on doing what you do best.
You offer expert advice to your clients, we offer expert insurance to cover it. Compare competitive quotes for your consultancy business, online or over the phone, select your preferred policy and get covered instantly.
Did you Know?
To become a sole trader in New Zealand, you must have:
- A personal IRD number for paying income tax and GST
- Relevant government licences and permits that your business may require
- Qualifications or registrations for your trade or profession.
You will also need to advise Inland Revenue that you’ve become a sole trader and you’ll need to register for GST if you earn over $60,000 a year.
Insurance for Consultants
Consultants working in all industries should consider insurance to safeguard their livelihood against the unique and commonplace risks they may face on the job. With so many new and emerging types of consultancy roles it is important that you understand the types of risks your business may encounter, even if you take all the measures in the world to keep it safe.
Insurance for management consultants*
Management consultancy is a growing area of expertise within the consultancy field. With a shift in the way that many businesses are now directing and running their businesses the demand is growing for more management consultants.
While you may be a management consultant who operates from home or visits your clients out on the road, ensuring you have the right business insurance in place are vital. Professional Indemnity insurance* is one of the main types of insurances you may need to consider, as well as Public Liability insurance* and Business Insurance*.
Professional Indemnity insurance* is something you may want to consider having in place before uttering those first words of management consultancy advice, a claim from a client without it could accidentally land you in hot water, a risk no small business owner wants to risk.
Professional Indemnity insurance may be a requirement if you work on certain contracts, and if you are a member of certain industry board or council you may also need to have a certain level of Professional Indemnity insurance in place. It is always a wise idea to check what level of coverage you may need when arranging your management consultancy Professional Indemnity insurance. Many consultants consider these and other policies:
Giving advice or providing recommendations doesn’t come without risk. That’s why Professional Indemnity (PI) insurance is designed to provide the essential financial protection you need as a Consultant, to safeguard your business for claims made against you if you make a mistake, or are perceived to have made a mistake. After all, your business is your livelihood, so protecting it is paramount.
Our comprehensive Professional Indemnity insurance covers a broad range of consultancy occupations, including:
- Communications consulting
- Fire and Safety
- Funeral Directors
- Human resources / training services
- Marketing / public relations
- Marriage Celebrant
- Mineral Industry
- Organisational structure & change management
- Public relations
- Risk Management
- Strategic business planning
- Title / Legal Searchers
- Workflow processes & procedures
What is covered?
Professional Indemnity insurance is designed to protect your assets, your bank accounts, and your professional reputation. These policies typically do this by covering the costs associated with a claim, including:
- Legal expenses, such as costs related to your legal defence, court attendance, and responding to disciplinary inquiries
- Costs associated with formal and informal investigations of the claim
- Damages awarded to the claimant
- Public relations
PI policies usually cover the following events:
- Providing negligent or misleading advice
- Breaches of duty, such as confidentiality and other privacy issues
- Defamation, libel or slander
- Intellectual property and copyright infringement
- Loss or damage to client documents
- Bodily injury or illness caused by the professional services covered under your policy
What is not covered?
Professional Indemnity includes many important protections for consultants. However, it typically does not cover the following:
- Intentional damage
- Any claims or circumstances that are known prior to the period of insurance
- Acts of fraud and dishonesty
- Accidental injury and property damage
Public Liability insurance is a no-brainer when it comes to offering consultancy services. When you are dealing with clients on a regular basis, whether at your office or theirs, you will be exposed to many potential mishaps – something as simple as accidentally spilling coffee all through a clients laptop could end up costing you a couple of thousand dollars.
Public Liability insurance will protect you from any financial losses which may arise from a claim of third party property damage or accidental injury (not covered by the ACC) to save you from having to pay from your own hip-pocket.
What is covered?
Typically, Public Liability policies will cover costs and compensation relating to:
- Repairing or replacing damaged property
- Third-party personal injury or death where the ACC does not provide cover
- Your legal defence
What is not covered?
While Public Liability insurance can provide you with important peace of mind, it is still important to ensure that your business is operating in accordance with the law and the professional standards of your industry.
Public Liability insurance typically will not cover:
- Injuries to your employees or yourself
- Damage to your own property
- Compensation for personal injury that is covered by the ACC
Protect your business today.
Your clients are your bread and butter, but where would you be without your business assets? Business Insurance allows you to select the types of coverage that best suit your business, like contents, to protect against fire, earthquake, theft, vandalism and accidental damage.
Chances are you store valuable and sensitive client information online, which you need to protect. In today’s digitalised world, cybercrime and data breaches are common. Sensitive data can be compromised, resulting in very expensive costs, not to mention the potential irreparable damage it can cause to your business’ reputation.
Cyber Liability insurance is designed to protect your business against the costs and legal expenses if your network is hacked and if sensitive client information is stolen.
What is covered?
Consultants can expect most Cyber Liability insurance policies to cover costs relating to:
- Investigation of an event and data recovery
- Business interruptions
- Fines and penalties
- Extortion payments
- PR and crisis management for your consultancy
How much does insurance for consultants cost?
Like many consultants, you probably want to know exactly how much it will cost to insure your consultancy business. Insurers take many factors into consideration when they calculate your premium. Because every consultancy is different, the amount you will pay for insurance will likely differ from other small business owners, even other consultants.
Insurers may consider these and other factors when determining how much your insurance premium will be:
- Your industry and the nature of your business
- The size and annual turnover of your business
- The number of employees being covered and their qualifications
- Your past history of insurance claims
- The amount of cover you are seeking
A good way to understand how much you can expect to pay for consultants insurance is to compare quotes from multiple insurers. Contact BizCover to receive instant quotes for consultants insurance today.
* This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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You can also access quick links to our self-service portal, where you can download your Certificate of Currency, update your payment details, amend your cover and download your policy documents.