About this group
Insurance is a necessity for most independent Management Consultants, but obtaining it can be expensive and - frankly - tedious. We want to change that.
We're tackling Professional Indemnity Insurance first. Most existing PI Insurance policies can only be arranged for 12 months, which is less than ideal for 3 month or 6 month consulting engagements. We'd like to use the combined buying power of this group to create Professional Indemnity Insurance policies for shorter terms, and to demand better prices from insurers.
We also want to help independent management consultants arrange cover for accident and sickness which counterparts in permanent roles receive as an employee benefit. As things stand, you need a mixture of income protection insurance, critical illness insurance, family income benefit, and life assurance to get this protection - and we think that's more complicated than it needs to be.
Lastly, we want to take on health insurance. Currently, this is significantly more expensive for independent consultants than for corporate employees because you don't have the buying power of a large company behind you. As a result, you pay a huge premium on health insurance which is effectively subsidising members of corporate schemes.
The purpose of this group is to change this situation for the better, by enabling you to use the collective buying power you share with other independent consultants. If 20 people join, we'll commit to opening a dialogue with insurers.
Finally, do use the forum to let us know about any challenges you've experienced getting insurance, and what your priorities are.
Top questions answered by us
What is Professional Indemnity Insurance (PII)?
Professional Indemnity Insurance (sometimes shortened to "PI insurance") is designed to cover the cost of negligence claims made by a client against a consultant. It is standard practice for organisations who employ independent consultants to insist on PII, in case something you do while working for them goes badly wrong and results in legal action. Some companies will insist on physical evidence (such as a certificate of professional indemnity insurance) before they will allow you to start work with them, while others will accept a signature confirming that you have professional indemnity insurance arranged. The amount of professional indemnity insurance cover required varies from company to company, but some organisations demand as much as £5m.
What other insurances do independent Management Consultants need?
In addition to professional indemnity insurance, independent consultants are often asked to arrange public liability insurance. The purpose of this is to deal with legal claims from members of the public for death, injury, or financial loss. If you employ staff, you are also obliged to take out employers liability insurance, in case your employees meet with accident or illness as a result of work they do for you.
Management consultants often buy public liability insurance and employer's liability insurance as a bundle with Professional Indemnity Insurance.