Consultant Insurance, matched properly
Covra connects Australian businesses with a broker who understands their industry and risk profile.
You’ll be matched with one suitable broker. No multiple calls.
Get matched with the right broker in a few simple steps
Tell us about your business and we’ll match you with a broker relevant to your enquiry. You’ll only be contacted by one relevant provider.
Step 1 of 3What insurance do consultants need?
Most consultants look at professional indemnity for claims about their advice, public liability, and cyber cover. Professional indemnity is mandatory for some professions and often required by contract, and employers must hold workers’ compensation.
What consultants commonly insure.
The covers consultants most often look at. What applies depends on your work, your clients and whether you employ staff.
- Professional indemnity Claims that your advice or services caused a client a loss, such as not achieving the results of a contract, and the legal costs. It’s mandatory for some professions1, and government contracts often ask for it (see below). How it differs from public liability.
- Public liability Injury to other people and damage to their property caused by your negligence. NSW’s consultancy scheme requires it even where professional indemnity isn’t needed (see below)1, 2.
- Cyber Your own costs after a cyber incident, and claims from others. Any business that provides services under a Commonwealth contract is covered by the Privacy Act, whatever its turnover3, 4.
- Workers’ compensation Compulsory for most employers. It doesn’t cover sole traders, who can take out accident and sickness insurance instead1.
What government panels ask for.
The minimum professional indemnity (PI) and public liability in published government contracts for consultants. Buyers can set other amounts in each contract.
| Contract | Professional indemnity | Public liability | PI kept after |
|---|---|---|---|
| NSW consultancy scheme2 | $10 million where it applies, or a professional standards scheme amount | $10 million | 1 year |
| NSW consultancy scheme, jobs up to $50,0002 | Only if the client asks. $2 million if no amount is set, and never over $10 million | $5 million | 1 year |
| NSW Core& One, low-risk professional services up to $1 million5 | $1 million | $5 million | 4 years |
| DTA Digital Marketplace Panel 26 | $2 million each occurrence, $10 million a year | $10 million | 7 years |
| WA ICT consultancy and advisory, low risk7 | $1 million | $10 million | Not stated |
| Victorian contracts3 | Set in each contract | Set in each contract | Up to 7 years, if asked |
| Federal standard terms8 | No amount set | No amount set | Not stated |
NSW says professional indemnity “is not mandatory but may be required for some engagements”, and its buyers set the level by the risk and type of work9. The Commonwealth Contracting Suite, mandatory for most federal agencies’ purchases under $200,000, asks only for “adequate insurances”: Finance says suppliers “should determine the level of insurance which adequately covers their risk exposure”8. The DTA’s panel, which includes strategy, policy and project management work, lets buyers raise its limits, and calls a certificate of currency “proof of the Seller holding the correct insurance”6.
Cover after the job ends.
Professional indemnity is usually claims-made: the policy that responds is the one in force when a claim is made, not when the work was done. That’s why contracts ask for it to continue.
- Claims-made One insurer’s policy covers claims made against you, and reported to it, during the policy period, for work done on or after the retroactive date10.
- Retroactive date Work before that date isn’t covered. One insurer offers consultants who don’t currently hold professional indemnity an unlimited retroactive date for 30% more premium11.
- What contracts ask for Professional indemnity kept for 1 year after the contract under NSW’s consultancy scheme, 4 years under NSW’s Core& One terms and 7 years on the DTA’s panel. Victorian contracts can ask for up to 7 years2, 3, 5, 6.
- Run-off cover Cover for “a specified period after a business has closed, been sold, or a professional has retired”. Victoria’s buying guide says the risk may be higher when a government buyer engages a sole trader3.
- Reporting early If you tell your insurer in writing about facts that might lead to a claim before the policy ends, the insurer stays liable for that claim if it’s made later, under section 40(3) of the Insurance Contracts Act11.
How much does consultant insurance cost?
No regulator publishes a current average premium for consultants. These are brokers’ published figures: a guide, not a quote.
What most paid a year for professional indemnity, with some up to $1,732. upcover, September 2026.12
Average professional indemnity premium, 2024–25. BizCover.13
Starting quote for a sole trader earning up to $50,000, with $5 million of cover. BizCover, December 2025.13
Typical premium a year for professional services. upcover, August 2026.14
Premium a year: the median, with the middle half of policies as the bar. From upcover’s policy data, published August and September 202612, 15.
One insurer’s consultants proposal form asks about fee income, staff, the work you do, claims in the past five years, qualifications, and whether you’ve given up rights to recover from subcontractors11.
Companies, agencies and tax.
How you’re engaged changes who holds the insurance, and how the ATO treats your income.
- PAYG through an agency One recruiter says PAYG contractors are covered by the agency’s professional indemnity, public liability and workers’ compensation policies17.
- Through your own company The same recruiter says Pty Ltd contractors buy their own public liability and professional indemnity “before starting on a client site”17. Another lists $10 million of professional indemnity and $20 million of public liability as common requirements (2022)18.
- Personal services income Income mainly (more than 50%) from your own skills or efforts. When the PSI rules apply, they change how you report it and what you can deduct19.
- The results test For at least 75% of your PSI, you must be paid for a result, supply any tools needed and be liable for the cost of fixing defects in your work. The ATO says hourly or daily pay is unlikely to meet the first condition. In its example, a consultant paid hourly by a government department, with no duty to fix faulty work, fails all three20.
- Deductions The ATO lists professional indemnity and public liability premiums, and workers’ compensation costs, as deductions, including when the PSI rules apply21, 22.
Claims against consultants.
APRA’s analysis of professional indemnity claims finalised in 2021, and published examples. Every claim depends on the policy wording.
$4,549
Average PI premium in 2021, across businesses of all sizes, up 193% since 2015. APRA named them among the occupations driving rising claim costs16.
About $50,000
The average of these claims finalised in 2021, across all professions16.
- Project managerPavers on a concrete resurfacing job the consultant managed failed and had to be replaced. Settled for about $1 million, including expenses23.
- Recruitment consultantAccused of misrepresenting how long a role would last, after the candidate resigned from another job. Settled for over $65,000, including expenses23.
Berkley publishes these as examples, to be read only as a guide. Marsh notes that management consultants “can sometimes be sued by clients if a business fails to achieve an overall objective”, even when they deliver the whole scope24.
Common questions.
Is professional indemnity insurance compulsory for consultants?
Only for some professions. For most consultants it’s a contract requirement: NSW’s consultancy scheme says professional indemnity is not mandatory but may be required for some engagements.
How much professional indemnity do government consulting contracts ask for?
It varies. NSW’s consultancy scheme asks for $10 million where it applies; on jobs up to $50,000 it’s needed only if the client asks, and defaults to $2 million. The DTA’s digital panel asks for $2 million per occurrence, and the Commonwealth’s standard terms only say “adequate”.
Do government contracts ask for public liability too?
Often, even when professional indemnity is optional. NSW’s consultancy scheme requires $10 million, or $5 million on jobs up to $50,000.
How long do I have to keep professional indemnity after a contract ends?
It depends on the contract: one year under NSW’s consultancy scheme, four years under NSW’s Core& One terms and seven years on the DTA’s digital panel. Victorian government contracts can ask for up to seven years.
What’s a retroactive date?
The date from which past work is covered. A claims-made policy covers claims made during the policy for work done on or after that date.
How much does consultant insurance cost?
In upcover’s data, most management consultants paid $411 to $946 a year for professional indemnity. BizCover’s consultancy customers averaged $88 a month in 2024–25.
Is professional indemnity insurance tax-deductible?
The ATO lists professional indemnity and public liability premiums as deductions, including when the personal services income rules apply. An accountant can explain how that applies to you.
What’s a certificate of currency?
The proof of insurance that clients and panels ask for. The DTA describes it as proof of the seller holding the correct insurance.
Still have a question? A broker can talk it through with you.
Get matched with a brokerWhy businesses use Covra.
Eliminating the friction of consultant insurance.
Not sure what cover you need
Get matched with a licensed or authorised insurance broker who can speak directly with you about your needs.
Don’t want to call multiple insurers
Avoid the spam. You will be matched with a broker relevant to your enquiry.
Want someone who understands your industry
We connect you with brokers experienced in your industry.
Need it sorted properly
Consultant Insurance can be complex; discuss your insurance needs with a licensed or authorised broker.
Verified brokers on Covra.
Licensed or authorised
All brokers are required to hold a valid Australian Financial Services Licence (AFSL) or operate as an authorised representative.
Actively Engaged
Brokers operate in Australia and are actively servicing local businesses.
High Responsiveness
Brokers are required to be contactable and responsive to enquiries.
Established Reputation
Brokers are expected to maintain a professional public presence, including customer reviews and business listings.
COVRA does not recommend or compare brokers. We operate as a referral service only.
How it works.
Tell us about your business
Provide basic details about your profession and revenue through our secure, simple form.
We match you with a relevant broker
Our system connects your enquiry with a licensed or authorised broker aligned to your industry and business needs.
Your broker contacts you directly
Your dedicated broker will reach out to discuss your needs and help you secure the relevant cover without the hassle of multiple calls.
Who requires cover.
- Management consultants Strategy, operations and change consultants
- Business advisers Business coaches, mentors and small business advisers
- Specialist consultants HR, marketing, procurement, risk and policy consultants
- Government suppliers Consultants on government panels and schemes
Covers consultants look at.
Our guides to the covers consultants most often ask about.
Sources.
- Types of business insurance, business.gov.au
- Performance and Management Services Scheme Rules (SCM0005), NSW Government, July 2024
- Insurance in procurement: goods and services guide, Buying for Victoria, 12 March 2026
- Small business, OAIC
- Core& One for Professional Services, NSW Government, August 2025
- Panel Agreement for Digital Marketplace Panel 2 (version 3.0), Digital Transformation Agency, 29 September 2025
- Information and Communications Technology Services CUAICTS2021, WA Government, 18 September 2026
- Commonwealth Contracting Suite: frequently asked questions, Department of Finance, 19 December 2025
- Performance and Management Services Scheme, NSW Government, 16 February 2026
- Professional Indemnity Policy CV863, CGU, December 2023
- WebRater proposal form: Consultants Professional Indemnity, DUAL Australia, February 2025
- How much does professional indemnity insurance cost in Australia?, upcover, 22 September 2026
- How much does professional indemnity insurance cost?, BizCover, data from 2024–25
- How much does public liability insurance cost in Australia?, upcover, 20 August 2026
- How much does cyber insurance cost?, upcover, 26 August 2026
- Review of claims trends and affordability of public liability and professional indemnity insurance, APRA, May 2023
- PAYG vs Pty Ltd: choosing your contractor structure, Motion Recruitment
- Going to Pty Ltd from PAYG? What you need to know, Speller International, April 2022
- Personal services income, ATO
- Results test, ATO, 23 November 2022
- Deductions for other operating expenses, ATO, 13 November 2024
- Claiming deductions when receiving PSI, ATO, 22 May 2023
- Professional Indemnity Insurance, Berkley Insurance Australia, 4 June 2026
- Management consultant insurance, Marsh