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Common industry risks   

Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.

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The Risks

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Risks Response

Management Liability

A consulting firm faces unfair dismissal, staff fraud, compliance inquiry, or tax audit costs in AU.

Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.

Employment Practices Liability

A staff member alleges unfair dismissal, workplace bullying, harassment or discrimination and pursues a formal claim for compensation.

Employment Practices Liability Insurance may respond to claims arising from alleged unfair dismissal, bullying or discrimination by employees.

Cyber Insurance

Compromised email or cloud files expose client data and trigger response costs, regulatory obligations and legal claims.

Cyber Insurance may respond to breach response costs, legal expenses, damages and regulatory penalties arising from a data breach.

Public Liability

A client or visitor trips in your office or at a workshop and alleges injury and resulting financial loss.

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Professional Indemnity

Advice provided in a process or compliance review leads a client to allege financial loss and make a formal claim.

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Management Liability

The Risks

A consulting firm faces unfair dismissal, staff fraud, compliance inquiry, or tax audit costs in AU.

Risks Response

Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.

Employment Practices Liability

The Risks

A staff member alleges unfair dismissal, workplace bullying, harassment or discrimination and pursues a formal claim for compensation.

Risks Response

Employment Practices Liability Insurance may respond to claims arising from alleged unfair dismissal, bullying or discrimination by employees.

Cyber Insurance

The Risks

Compromised email or cloud files expose client data and trigger response costs, regulatory obligations and legal claims.

Risks Response

Cyber Insurance may respond to breach response costs, legal expenses, damages and regulatory penalties arising from a data breach.

Public Liability

The Risks

A client or visitor trips in your office or at a workshop and alleges injury and resulting financial loss.

Risks Response

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Professional Indemnity

The Risks

Advice provided in a process or compliance review leads a client to allege financial loss and make a formal claim.

Risks Response

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

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Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

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Products

Coverage for Consulting Services

Public & Products Liability, Professional Indemnity, and more for Consulting Services from leading insurers

Public & Products Liability

Covers injury & property claims from your services, products or at your business

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Professional Indemnity

Covers negligence claims from third parties to help protect your business from professional errors

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Management Liability

Bundled insurance for executives and boards incl D&O, EPL, Statutory Liability and Tax Liability insurance

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Cyber & Technology

Includes Professional Indemnity and Cyber & Technology Liability insurance for tech businesses

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Claims examples

Common claims against Consulting Services

A few common situations, explained simply, so you know what claims can look like.

Unintentional Defamation
SCENARIO

A marketing consultant writes a campaign case study. A competitor alleges it contains false claims that harm their reputation. They demand the content be taken down and seek damages, saying the publication was defamatory.

WHY IT’S COVERED

Professional Indemnity Insurance may respond to claims arising from alleged unintentional defamation, libel or slander in the course of providing professional marketing services, including defence costs and compensation.

Scope and Rework Claim
SCENARIO

A client says the deliverables do not match the agreed scope, and that errors in your report made them redo the work. They demand you refund your fee and cover the cost of rework, plus legal costs to recover their loss.

WHY IT’S COVERED

Professional Indemnity Insurance is designed to respond to claims arising from alleged errors or omissions in your professional services, including defence costs and compensation.

Late Delivery Dispute
SCENARIO

A project plan slips after key tasks are missed. The client’s launch is delayed and they pay extra staff and supplier costs. They claim you failed to manage the work with reasonable care and ask you to pay their extra costs.

WHY IT’S COVERED

Professional Indemnity insurance is designed to respond to claims arising from alleged negligence, errors or omissions in your professional services, including defence costs and compensation.

Advice Causes Client Loss
SCENARIO

A consultant recommends a pricing change. The client follows it, then sales drop and they lose a key contract. They claim the advice was wrong and seek compensation for the financial loss, plus the cost of getting new advice and legal fees.

WHY IT’S COVERED

Professional Indemnity insurance is designed to respond to claims arising from alleged negligence, errors or omissions in your professional services, including defence costs and compensation.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

Manual handling damage

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

IS THIS COVERED?

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A marketing consultant writes a campaign case study. A competitor alleges it contains false claims that harm their reputation. They demand the content be taken down and seek damages, saying the publication was defamatory.

IS THIS COVERED?

Professional Indemnity Insurance may respond to claims arising from alleged unintentional defamation, libel or slander in the course of providing professional marketing services, including defence costs and compensation.

Unintentional Defamation
SCENARIO

A client says the deliverables do not match the agreed scope, and that errors in your report made them redo the work. They demand you refund your fee and cover the cost of rework, plus legal costs to recover their loss.

IS THIS COVERED?

Professional Indemnity Insurance is designed to respond to claims arising from alleged errors or omissions in your professional services, including defence costs and compensation.

Scope and Rework Claim
SCENARIO

A project plan slips after key tasks are missed. The client’s launch is delayed and they pay extra staff and supplier costs. They claim you failed to manage the work with reasonable care and ask you to pay their extra costs.

IS THIS COVERED?

Professional Indemnity insurance is designed to respond to claims arising from alleged negligence, errors or omissions in your professional services, including defence costs and compensation.

Late Delivery Dispute
SCENARIO

A consultant recommends a pricing change. The client follows it, then sales drop and they lose a key contract. They claim the advice was wrong and seek compensation for the financial loss, plus the cost of getting new advice and legal fees.

IS THIS COVERED?

Professional Indemnity insurance is designed to respond to claims arising from alleged negligence, errors or omissions in your professional services, including defence costs and compensation.

Advice Causes Client Loss
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Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

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FAQs

Consulting Services insurance queries

How do I make a claim?

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You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.
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How do I make a claim?

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What is a Certificate of Currency?

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A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.
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What is a Certificate of Currency?

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How quickly do I need to report an incident to my insurer?

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You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Professional Indemnity insurance typically operates on a "claims made and notified" basis, meaning both the claim must be made against you AND you must notify the insurer during the active insurance period (or discovery period if applicable). Late notification after policy expiry may not be covered unless you have purchased an extended discovery period. Prompt notification is essential to protect your rights under your insurance.
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How quickly do I need to report an incident to my insurer?

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What is a retroactive date?

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A retroactive date is the earliest date from which a claim can arise and still be covered under your policy. Professional Indemnity and certain other claims-made policies will only respond to claims arising from acts, errors or omissions that occurred on or after the retroactive date listed in your policy schedule. If an incident occurred before your retroactive date, it typically will not be covered even if the claim is made during the current policy period. Maintaining continuous cover without gaps helps protect your retroactive date — check your policy schedule or ask your broker if you are unsure of your retroactive date.
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What is a retroactive date?

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Does Professional Indemnity insurance  for consulting cover negligent advice?

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Professional Indemnity insurance is designed to cover claims arising from professional advice, recommendations or opinions that result in financial loss for a client. This may include allegations of misleading guidance, failure to exercise due care, or errors in professional judgment. Coverage typically extends to legal defence costs and compensation.
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Does Professional Indemnity insurance  for consulting cover negligent advice?

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Do consultants need Professional Indemnity insurance?

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Professional Indemnity Insurance is designed to cover claims arising from professional negligence, errors or omissions in the services you provide. While it is not a legal requirement for consultants in Australia, it is commonly held by consultants across Australia. Many clients, professional associations and booking platforms may expect you to hold current Professional Indemnity cover before engaging your services. Without this type of cover, you could be personally liable for legal costs and compensation claims. Speaking with an insurance broker can help you understand the level of cover appropriate for your circumstances.
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Do consultants need Professional Indemnity insurance?

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Insight

From our blog

Coverage, risk management and compliance, explained in plain English.

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