If you operate as a consultant — whether in management, IT, HR, strategy, operations or property-related advisory — you provide services and advice that clients act on. If something goes wrong (error, omission, negligence) you face the risk of a claim for financial loss, reputational damage or contract breach.
At Fraser Bond, we help consultants understand how professional liability (also known as errors & omissions or E&O) insurance fits into their business, how it supports risk management and how to align it with contract obligations and London-market exposures.
Professional liability insurance (or E&O) is designed for professionals who provide advisory or consultancy services. Key cover types include:
Professional Indemnity (PI) – Protects you if a client alleges your advice, report, design, consultancy service or deliverable caused them a financial loss.
Public Liability – If you meet with clients, visit their premises or operate onsite, this covers you for third-party bodily injury or property damage incidents.
Cyber / Data Liability – If your consultancy handles client data, systems, software or remote services, you may need cover for data breach, cyber incidents or tech errors.
Employers’ Liability – If you employ staff (even part-time), UK law requires this cover for claims by employees.
Together, these covers help protect your consultancy business, your personal exposure and support your professional standing.
Operating as a consultant in London or the UK brings specific risk considerations:
Clients may be large organisations, contracts may be high-value or cross-border — the potential financial exposure from a mistake is elevated.
Contractual or procurement frameworks often require consultants to hold professional indemnity and liability insurance as a condition of engagement.
Working onsite, visiting client premises or providing digital services means risks of property damage, data breach or service disruption are real.
Insurance gives you credibility with clients, helps you manage risk, and supports your compliance with commercial contract norms.
In short, professional liability insurance is not just “nice to have” — it’s a cornerstone of responsible consulting practice in the UK market.
Here are benchmarks and key factors when selecting your policy:
Providers state PI limits for consultants range from £50,000 to £5 million depending on your services, clients and contract requirements.
Starting premiums can be modest for small consultants; for example one broker lists PI cover from around £8.14/month for small turnover consultants.
Cost drivers include: your consultancy size, turnover, number and value of clients, whether you provide complex or high-risk advice (e.g., property, IT, regulatory), whether you work internationally, whether you employ staff, your past claims record.
Policy features to check:
Is retroactive cover included (covering work done before policy start) ?
What is the territory/jurisdiction (UK only, worldwide, excluding US/Canada) ?
Are your services explicitly included (advisory, design, implementation) or excluded ?
Are there any large exclusions or excesses that make the cover inadequate for your risk profile?
Does the policy align with your contract obligations (client requirements for cover limits or insurer standard) ?
Fraser Bond recommends the following approach:
Define your consultancy scope clearly – what services you deliver, who your clients are, risk profile (e.g., strategy consulting vs high-risk implementation vs property advisory).
Check client/contract requirements – many clients (especially larger organisations) will require minimum PI limits or insurer quality; ensure you meet them.
Select cover types and limits aligned with your risk – at minimum PI; add public liability if you meet clients onsite; consider cyber/data if you handle sensitive tech/data.
Review policy wording and exclusions carefully – make sure your services are covered, retroactive date is suitable, territory is correct, and exclusions are acceptable.
Ensure you meet legal requirements – if you have staff, you must have employers’ liability cover.
Compare providers specialising in consultancy risks – better to use insurers experienced in consultant professional liability than generic business cover.
Maintain continuous cover and retain proof – Claims might arise from past work; having continuous cover and documentation is vital.
Review annually or when your business changes – If you add new services, larger clients, increased turnover, or international work, review cover accordingly.
Fraser Bond provides advisory services that go beyond simply buying insurance. Our value for consultants includes:
Insight into how your consultancy business, client contracts, risk exposures and UK-market context interact with insurance requirements.
Review of your insurance policy documents to ensure they align with your services, risk profile, client contract obligations and growth plans.
Helping you present your insurance credentials to clients and procurement processes, thus improving your credibility and contract access.
Supporting you as you grow your consultancy business in London and beyond, ensuring your insurance grows with you.
With Fraser Bond you achieve more than cover – you achieve confidence and credibility.
If you operate a consultancy business in London or the UK and want to ensure your professional liability, contractual risk and insurance cover are properly aligned, visit FraserBond.com or contact our London advisory team for tailored guidance on consultant professional liability insurance, professional indemnity, public liability and risk-aligned cover.
