Consultant insurance for business and IT consultants

As soon as you start working with clients — even if most of your work is delivered remotely or online. Many organisations require proof of public liability insurance as a contractual condition before engaging a consultant. Cover should be in place before you take on your first client engagement.

No — it isn't a legal requirement in the UK. However, the vast majority of organisations you'll work with — particularly public sector bodies, large corporates, and those with formal procurement processes — will require it as a contractual condition. It's also worth noting that as a consultant your advice and guidance can have significant consequences, making appropriate cover essential.

It covers compensation claims and legal fees if a member of the public is injured or their property is damaged as a result of your consulting activities. Common examples include a client or visitor being injured at a location where you're working, accidental damage to a client's property or equipment during a site visit, or a third party being affected by your presence at a client's premises. It covers both the compensation payment and your legal costs, even if a claim turns out to be unfounded.

Public liability insurance covers claims from members of the public — it doesn't cover financial losses caused by your professional advice or recommendations (you'd need professional indemnity insurance for that), claims from anyone you employ (that's employers' liability), or damage to your own equipment. For consultants, professional indemnity is often equally if not more important than public liability. Always check your policy wording carefully.

Standard public liability insurance covers injury or property damage — it doesn't cover financial losses resulting from your advice or recommendations. For that you'd need professional indemnity insurance, which protects you if a client suffers a financial loss as a result of your professional guidance. Many consultants benefit from having both policies in place. Speak to our team and we can arrange both.

Even if you work entirely remotely, many clients — particularly larger organisations and public sector bodies — will require proof of public liability insurance as a contractual requirement before engaging a consultant. It's also a professional credibility signal, and premiums for low-risk consultancy work are typically very affordable.

Standard cover starts at £1 million. Many organisations — particularly public sector bodies, large corporates, and those with formal supplier requirements — will specify a minimum of £2 million or £5 million. Always check your contract and procurement requirements before selecting your cover level.

Yes — business insurance is an allowable expense, which means you can deduct the cost when calculating your taxable profit. Make sure you keep your policy documents and receipts as records for HMRC. If you're unsure, speak to your accountant.

Yes — you'll receive proof of cover instantly when your policy is in place, which you can share with clients and procurement teams straight away. If you also take out employers' liability cover, a Certificate of Employers' Liability will be issued immediately.

We've been arranging insurance for over 50 years — now trading as insurd — and we're authorised and regulated by the Financial Conduct Authority (Firm Register Number: 308508), and over a thousand real customers have shared their experiences with us on Trustpilot.

You can verify our status directly on the FCA register.