If you are a project manager, you might be wondering if you need to purchase insurance. Project managers need to purchase insurance. At the very least, all project managers should have liability insurance. If you do not have liability insurance, a lawsuit could take a large portion of your income. Several insurance agencies have policies that are suitable for project managers. Before you contact an insurance company, you should be knowledgeable of your coverage options.
1. Project Management Protective Liability Insurance
Project management protective liability insurance is an optional coverage option. The liability insurance does not have a standard form, and the project management protective liability limit applies separately to each project. The policy offers the insured liability protection for any incidents that are caused by the contractor’s work. The policy is supposed to reduce the hostility that usually arises when a claim is filed.
2. Insurance for Projects
Project managers define the project’s objectives. After defining the objectives, they acquire the resources that will make the project come to fruition. Ultimately, the project manager is responsible for the success or the failure of the project. A myriad of contractors and subcontractors are used to complete a project. All project managers should purchase professional indemnity insurance.
3. Professional Indemnity Insurance for Project Managers
A negligence lawsuit can bankrupt a project manager. Fortunately, professional indemnity insurance can cover negligence claims. A professional insurance policy can cover defamation, breach of confidentiality and intellectual property infringement. Some policies can fix a mistake before the issue becomes a problem for a client.
4. Public Liability Insurance
As a project manager, you will likely have several visitors in your office. Unfortunately, some of your visitors might be clumsy. If you do not have public liability insurance, you could be held responsible for any accidents that happen in your office. When you purchase public liability insurance, the insurance will cover the compensation claims.
5. Employers Insurance Coverage
Employees can get hurt, and they can sue for damages. The claims are usually due to injuries that occur inside or outside of an office building. If you do not have employer’s liability insurance, you might be sued by your employees. The insurance will pay for work-related bodily injury claims.
6. Office Equipment and Property Insurance
A natural disaster can destroy your furniture and office equipment. If your valuables are destroyed in a disaster, office equipment and property insurance will cover your technical gadgets. The insurance will also pay for plants and furniture. You might think some items are not worth insuring, but you might be underestimating their value.
7. Business Interruption Insurance
If an unforeseen event interrupts your schedule, you can still work outside of your office. The event may be caused by a flea infestation, fire or flood. Business interruption insurance will cover the cost of setting up your company elsewhere. The insurance will also cover any lost revenue.
8. Directors and Officers Insurance
Shareholders can sue higher level managers. Directors and officers insurance will cover higher level managers. If directors are sued, the insurance will pay for the compensation.
9. Consultants Insurance Coverage
Project managers have several insurance options, and there are several insurance companies. Usually, the most affordable insurance options can be purchased through an online insurance brokerage firm. A reputable online insurance brokerage firm will have knowledgeable representatives and affordable prices. The best insurance broker websites have great reviews. Before choosing an insurance agency, you should make sure that you have a thorough understanding of the policy. If the premiums and deductibles are reasonable, you should purchase the insurance.
As you assign project management roles to your employees, you should always be mindful of your insurance coverage. You will likely work with thousands of customers, contractors and subcontractors. When you follow the insurance requirements for consultants, you will ensure that your company’s finances are always protected.