Business Insurance For Consultants

Compare business insurance quotes with Savvy to find the best policy for your consultancy. 

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, updated on August 1st, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

As a consultant, you’re relied upon to provide expert knowledge in your area of specialty. Your clients rely on the advice you give to make important decisions. However, mistakes can happen, and if the advice you provide proves to be wrong or leads to unintentional consequences, you could find yourself on the wrong end of a lawsuit. For this reason, all consultants need good business insurance to protect them in case the unexpected happens. 

You can compare quotes for many types of business insurance here with Savvy. Just answer a few simple questions about the work you do and the insurance you need and you’ll have multiple quotes from a range of respected insurers to compare instantly. Use our quick and easy comparison service to help you get the best value insurance available today. 

What types of insurance should I buy for my consultancy business?

Depending on the type of work you undertake as a consultant, your business insurance needs may differ. However, they’ll likely include the following: 

Professional indemnity insurance 

Professional indemnity insurance can cover you against claims that the advice, recommendations or service you provided as a consultant were either incorrect or negligent. It’s an important type of insurance to have for anyone who offers advice as a consultant, as there are so many unknowns that could go wrong. For example, if you’re an architect consulting on a major project, there may be numerous material issues that crop up during the construction phase which you're found to be liable for. Cover is available starting from $250,000 and can reach up to $10 million or more for larger projects. 

What it covers 

  • Payment of compensation if there’s a successful claim against you 
  • Payment of court-awarded damages to the litigant 
  • Cover for your legal defence costs 
  • Cover for the cost of disciplinary proceedings or investigations 

Public liability insurance 

Public liability insurance is essential for anyone who deals with members of the public or comes into contact with public property. It can cover you against claims that you caused injury to a member of the public or damaged their property. This insurance can offer between $5 million and $20 million worth of coverage and is compulsory in many circumstances, such as for work on most building sites in Australia. 

What it covers:  

  • Third-party personal injury claims 
  • Damage to a third party’s property 
  • Legal fees to defend yourself 

Cyber liability insurance 

Cyber liability insurance is also a very important form of insurance for IT consultants or those who handle confidential or sensitive client data. It’s also important if you rely on IT to earn your income or could suffer severe loss if your computer or laptop was hacked or data stolen.   

What it covers 

  • Data breaches including theft of client information 
  • The cost of a forensic investigation into the cause of the breach 
  • Data recovery costs 
  • Cyber extortion and denial of service threats 
  • Crisis management costs 
  • Advertising and communicating with customers or clients 
  • Legal costs including any fines and penalties imposed 

General business insurance 

If you work as a consultant, you may be a sole trader or run your own business. General small business insurance offers coverage in a variety of areas, such as if you have portable equipment like laptops which you need for your management consultancy business and wish to insure. You can take out general liability insurance as a package (which also includes your professional indemnity and public liability insurance, for example). 

Commercial vehicles aren’t included, so you may need separate commercial vehicle protection for your work vehicle. 

What it covers: 

  • Fire, storms, impacts and collisions which cause damage to your business assets 
  • Theft, vandalism and forced entry to your business premises 
  • Cover for electronic and other portable equipment 

Personal accident and illness insurance  

Since you rely on yourself to produce an income as a consultant, taking care of your health should be a high priority. Accident and sickness insurance can provide cover for you if you become sick and are unable to work, offering a weekly replacement income if you’re injured or ill.  

What it covers: 

  • Loss of income as a result of an injury or illness 

 Optional extras can include: 

  • Death benefits 
  • Disablement benefits 

Payment of business expenses during your recovery period

What isn’t covered under my consultant business insurance?  

The most common exclusions for the above insurance types include: 

  • Injury to yourself or your employees 
  • Flood damage 
  • Unlawful activity or criminal negligence 
  • Reckless behaviour or intentional damage 
  • Anything to do with asbestos 
  • The effects of pollution caused by your business activity 
  • Damage to computer hardware 
  • Upgrading of a system not related to the cybercrime 
  • Power outages or failure of satellite or telecommunication services 
  • Prior known circumstances or risks 

How much does business insurance cost for a consultant?

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance, including the following:  

  • The state you’re in  
  • Whether you live in a rural or urban area 
  • Whether you’re a sole trader, are in a partnership or run a larger business 
  • Your business size and turnover  
  • If you have any employees 
  • Your insurance history 
  • Whether you’ve made an insurance claim in the past five years 

The main factor which will affect the cost of your insurance is the industry and occupation you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another. 

You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether you need a long-term insurance policy as an IT consultant or cover for a one-off event, you’ll be able to compare your options to help you find the policy best suited for your business needs. 

Why do I need business insurance as a consultant?

You’ve no doubt worked hard to establish your professional reputation and get where you are now, so it makes sense to protect all that hard work in case things go wrong. Business insurance is there to protect you and your business against a range of eventualities. 

Most consultants and small businesses have some contingency funds put aside for rainy days, but these emergency funds are rarely sufficient to cover the cost of a major catastrophe. If this happens and you have adequate insurance to protect all aspects of your business and your income, you’ll have a much better chance of getting back on your feet quickly. 

Types of business insurance

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Frequently asked questions about business insurance for consultants

Is professional indemnity insurance compulsory for consultants?

It may be compulsory to hold professional indemnity insurance (which is also known as malpractice insurance) in order to tender for many government contracts, as well as to become a member of many professional associations. Check what your requirements are before you dive into the application process. 

Is it possible to change the level of my insurance coverage during the year?

Yes – as your work contracts change, so can the level of cover you’re required to have. If you do need to change your insurance before your renewal date, you should contact your insurance company and explain how your circumstances have changed so that your level of cover and premiums can be altered.  

If I don’t have professional indemnity insurance as a consultant, could my personal assets be at risk?

Yes – if you don’t have adequate insurance and are the subject of a lawsuit, you could potentially lose your personal assets to cover the cost of compensation if you're deemed to be liable. This is why it’s so important to have good business insurance to cover all the liabilities and risks you face as a consultant. 

What information will I need to make a claim?

The information you should have to hand when you contact your insurance company to make a claim will include: 

  • The name of the policyholder 
  • Your policy number and start date (which can be found on your Certificate of Currency) 
  • A detailed description of the incident (what happened to cause the damage or loss) 
  • Specific dates and times when the incident happened 
  • Contact details of any other parties involved (or witnesses to the event) 
  • Details of your police report number (if a crime took place) 
  • Details of the property lost or damaged (including its age and value) 
  • Your bank details for settling the claim 


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Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.

Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.

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