If you operate as a consultant — whether in management, IT, HR, strategy, operations or other advisory fields — your services carry significant professional risk. A single mistake, omission or piece of advice that fails to deliver can lead to client complaints, legal claims, reputational damage and financial penalty.
At Fraser Bond we help consultants understand how liability insurance (often called professional indemnity or errors & omissions insurance) fits into their business, how to align it with contract requirements, and how to choose the right cover for the UK market — especially in London’s demanding professional services environment.
Consulting liability insurance is a portfolio of cover types tailored for professionals who give advice, provide services or carry out consultancy work. Key components include:
Professional Indemnity (PI) / Errors & Omissions (E&O) Insurance – Protects you if a client alleges your advice, report, service or deliverable caused them a financial loss.
Public Liability Insurance – Important if you meet clients onsite, visit their premises, or have third-party exposure; covers bodily injury or property damage caused in the course of your work.
Cyber / Data Liability Insurance – If you handle client data, digital systems or remote consultancy services, this cover protects you from breaches or system failures.
Employers’ Liability Insurance – Required in the UK if you employ staff (even part-time assistants). Covers employee injury/illness arising from their work.
Together, these covers allow your consultancy to operate with confidence, protect your personal and business assets, and fulfil client/contract obligations.
Consultants working in London and the UK face particular risk exposures:
They often work with large clients, high-value contracts, and complex service engagements where the potential claim size is significant.
Many procurement or client contracts will require consultants to hold certain levels of PI or liability cover as a condition of engagement.
Visiting client sites, doing in-person deliverables or handling sensitive data (especially in London’s digital/finance centres) increases third-party exposure.
Insurance helps not only protect you but strengthens your credibility with clients, makes you contract-ready, and supports your professional standing.
In short, consulting liability insurance is not simply optional — it’s a foundational element of a professional consulting business in the UK.
Here are typical benchmarks and factors to review when selecting your cover:
PI cover: Many UK insurers quote limits starting at around £50,000 and going up to several £3 million or more, depending on your risk, clients and contract size.
Public liability: Many consultant-packages offer from ~£1 million limit upwards; for higher risk or larger engagements £5 million may be required.
Starting premiums: For small consultancies these can be modest; one provider cites PI cover from around £8/month for £100,000 cover.
Cost drivers you should check:
Nature of your consultancy services (simple advisory vs high-risk implementation).
Size/value of your clients and contracts.
Whether you handle sensitive data, provide digital services, visit client sites.
Whether you employ staff or subcontractors.
Claims history and risk exposures.
Important policy features:
Retroactive cover — covers past work done before policy start.
Geographical/territorial scope — UK only or worldwide exposure.
Clear cover wording: Ensure your exact services are included and understand the exclusions (e.g., advice outside scope).
Fraser Bond recommends you follow this structured approach:
Define your consultancy scope and risk profile – What services you offer, to whom, how you deliver, what exposures exist.
Check your client/contract requirements – Many contracts will specify minimum insurance or particular types of cover.
Select cover types and limits aligned with your risk – At minimum PI; add public liability, cyber/data and employers’ liability as needed.
Review policy wording & exclusions carefully – Be sure your service area, past work, jurisdiction are covered; watch for exclusions.
Choose an experienced insurer or broker in consultancy risk – Generic business insurance may not reflect consultancy exposures.
Maintain continuous cover and keep documentation – Claims may arise from past advice; you’ll want proof of cover readily available.
Review annually or when your business changes – If you expand services, increase turnover, take on larger contracts or operate internationally, update your cover accordingly.
Fraser Bond offers more than standard insurance advice. Our value for consulting businesses includes:
Insight into the consulting business environment in London and how that impacts risk and insurance needs.
Help in interpreting your insurance policy documentation so the cover truly aligns with your services and contracts.
Guidance on credibility and documentation: ensuring you have proof of cover to present to clients and contracts.
Strategic support: as your consultancy grows or moves into higher-risk areas, we help you align your insurance, risk-management and business model.
With our guidance you’re not simply buying a policy — you’re protecting your business, reputation and future.
If you operate a consultancy business in London or the UK and want to ensure your liability, professional risk and insurance cover are properly aligned, visit FraserBond.com or contact our London advisory team for tailored guidance on consulting liability insurance, professional indemnity, public liability, cyber/data cover and how to choose the right policy for your consultancy.
