Why it’s Essential To Have Project Manager Insurance
Between the constant deadlines, budget-related concerns, and the work involved with juggling multiple projects at once, a project manager’s job is never truly done.
However, as project managers you’re expected to do whatever it takes to keep the company pipeline going, what protections do you have in the event that something goes wrong?
When the unthinkable happens and you find yourself left holding the bag, project managers insurance can help ensure that you have the coverage and protection you need.
Why Project Manager Insurance is a Must-Have
No matter what industry you’re in or what type of work you specialize in, it’s not always possible to predict final outcomes. As such, you have no way of knowing whether or not your next project or your last project could be the one that prompts someone to file a lawsuit.
Project managers insurance may be able to give you protection in situations such as:
- A miscommunication occurs during a project you’re working on that results in a client’s project being delayed. However, due to the delay the client loses money and wants to be compensated.
- You set a construction project timeline with an especially tight turnaround time. In an effort to meet this deadline, the company pushes the pace and due to flaws in the finished building, the client is forced to pay for repairs and has filed a statement of claim.
- While you normally keep a meticulous project spreadsheet, due to all the work you were doing during a particularly busy period, you overlook an essential detail that impacts a product manufacturing run. A customer gets hurt while using the substandard product.
The most troubling aspect about liability exposure is that you may not even be at fault when all is said and done in court. But the legal bills you’re expected to pay in order to get there can be very expensive. Insurance is what can make it possible for project managers to protect themselves even in a worst-case scenario.
The Four Coverage Options Every Project Managers Should Consider
1. Professional Indemnity
You may hear professional indemnity insurance referred to as “errors & omissions insurance and/or professional liability insurance” depending on the context. But basically, professional indemnity insurance is designed to provide coverage against liability insurance claims that arise from mistakes and oversights. This is generally recommended for anyone who makes a living by giving educated advice to clients. And as project managers, you definitely fit the bill.
The unfortunate truth, however, is that expenses and damage to your professional reputation are hard to escape from once a lawsuit has been initiated. However, with professional indemnity coverage, you can place yourself in a better position in the event that you’re in the position of potentially being held liable for advice you’ve given in your capacity as a project manager.
2. Commercial Property Insurance
This is insurance that provides coverage to property that has been used for business purposes. While a lease may insure your building and your general home insurance may insure your house, your business property may not be covered under those policies. And at the end of the day, sifting through the aftermath of a flood, fire, or theft incident while being forced to buy new equipment out-of-pocket is no one’s idea of a good time. Project managers insurance can help cover gaps left by general home insurance policies or lease insurance clauses so that you’re not starting with nothing.
3. Commercial General Liability Insurance
Commercial general liability insurance is insurance designed to cover lawsuits that arise from bodily or personal injury or property damage. This is valuable because even when you’ve done all you can do, project management doesn’t happen in a vacuum. There are always moving parts involved between suppliers, manufacturers, and in-house and outsourced services. As such, there’s always potential to be named in lawsuits when there are questions of liability. Commercial general liability insurance coverage can help you mitigate the financial costs of navigating personal injury and/or property damage-related litigation.
4. Commercial Auto Insurance
Auto insurance isn’t exactly at the top of people’s minds when they hear the words “project managers insurance”. But the fact of the matter is that sometimes project managers are expected to visit clients, survey projects, and drive between sites depending on the exact nature of their roles. If this sounds like you, your personal vehicle insurance policy may not be enough if you ever end up in a fender bender while traveling for work purposes. Commercial auto insurance could be a needed coverage option if business-related travel is a regular part of your job.
The Two Things Every Project Manager Needs From Their Insurance Broker
1. Excellent Customer Service
When all is said and done, you want an insurance broker who will work with you to ensure that you’re getting the coverage you need at a level that makes sense for you. The last thing you want as a policyholder is to find out too late that you’re under-insured or to be in a situation where your broker is nowhere to be found when you need to cash in your insurance policy. That’s why it’s important to work with an insurance broker who will take the time to understand you and your insurance needs as a project management professional.
2. A Broker Who Gets Your Industry
Conclusion
As a project manager, you know more than just about anyone about the importance of managing risk. The business processes that you oversee every day are becoming more complex with more moving parts and more opportunities for liability exposure. Contact an ALIGNED insurance broker for project manager insurance today!
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