Many Australian businesses are seeking advice as they continue to adapt to a post-COVID world. The consultants on your books may find their services in high demand across multiple industries.
Professional Indemnity (PI)* insurance can provide them with vital protection. It might be time to consider how you can best serve your consultant clients, whether they are seeking a PI policy for the first time or are ready to renew.
Professional Indemnity Basics for Consultants
Professional Indemnity insurance is essential for practising consultants, providing cover against errors and omissions resulting from their work, allegations of negligence, and other forms of professional wrongdoing that could result in a claim.
A PI policy also helps your consultant clients meet insurance obligations set by government legislation or their professional association.
Key PI Exposures for Consultants
Professional Indemnity insurance can help shield consultants from key exposures, including:
Contractual liabilities
If COVID-19 has taught businesses anything, it’s that things don’t always go to plan. A PI policy can help your consultant clients prepare for the unexpected, including missed deadlines and inability to deliver promised services.
Breaches of legislation
Consultants often provide advice and recommendations around regulation and legislation. An error or omission of vital information could result in fines and penalties for the customer—and a PI claim for your consultant client.
Negligence claims
While your consultant clients likely set high standards for their work, this alone does not make them immune to negligence claims. A customer simply believing that your client has acted negligently could trigger a claim, whether it is warranted or not.
These exposures and others illustrate the importance of PI coverage for consultants. This product is likely a ‘must have’ for your SME clients and their consultancies.
Claim Example
Here’s an actual claim example** from one of our insurer partners that highlights a key exposure for consultants:
The Insured is an OHS consultant who prepared an OHS assessment of the common areas of the residential apartment block. Subsequently, a worker employed to install telecommunications equipment stepped on a skylight which then broke. The worker fell four metres, sustaining severe injuries, including a spinal cord injury resulting in paraplegia. The Insured was notified that the Victorian WorkCover Authority had commenced negligence proceedings against eight defendants, including the Insured.
The final settlement and insurer contribution was $318,700, including legal costs.
Our Professional Indemnity offering for Consultants
BizCover for Brokers has a broad PI appetite for consultants. Using the B4B platform, brokers help their consultant clients obtain insurance from our four insurer partners—AIG, Dual, QBE and Vero.
The B4B platform can accommodate your SME and micro-SME consultant clients. Our largest bound turnover in 2021 was $3.5 million, with an average turnover of $224,448 across all consultants on the platform. However, we can cover consultants with turnovers up to $7.5 million.
We offer cover for consultants of all shapes and sizes—our average premium is $594, with the largest premium on the books in 2021 totalling $8,000.
The probability of getting an instant quote through the B4B platform for your consultant clients is high. We quoted 97.57% of all submissions we received in 2021. That’s right—less than 3% of submissions were declined!
These numbers are an indication of the business quoted and bound through BizCover for Brokers for calendar year 2021 and are not a representation or guarantee of any current or future rates.
What other policies do Consultants typically consider?
Brokers are binding more than just Professional Indemnity for their consultant clients. Other policies bound on the B4B platform along with PI include:
These policies often pair well with PI because they address other exposures that your consultant clients might face. Public Liability can protect them when meeting with clients in their office or at another location, while Cyber Liability focuses on risks including data breaches and loss of client information. Personal Accident & Illness provides added peace of mind if your client is unable to work due to an injury or illness, even those sustained outside of work.
Quoting and binding multiple products at the same time is easy with BizCover for Brokers. You can help your consultant clients address their various risk exposures in minutes and get on with your day!
Broking Streamlined
Professional Indemnity is an important policy option for your SME clients, including consultants. With streamlined broking, BizCover for Brokers has made it faster and easier to bind PI and seven other products for your clients.
Sign in to bind your client’s next Professional Indemnity policy with BizCover for Brokers.
Ready to put the B4B platform to work for your brokerage? Join now to get started.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this email is general only. Coverage for claims on the policy will be determined by the insurer, not BizCover for Brokers, and will depend on the specific facts and circumstances involved.
**The provision of claims examples is for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.
BizCover for Brokers is a business name of BizCover Pty Ltd (ABN 68 127 707 975; AFSL 501769)
