As project managers, you are intimately familiar with risk management. Applying the risk-management model you use for the projects you oversee to your own job functions will give you an appreciation of the importance of Project Managers Professional Indemnity Insurance.
You are responsible for planning, organizing and directing any given project to ensure that it is delivered on time, on budget and according to specifications. Which means that you are ultimately responsible for the outcomes related to:
- Time – schedule delays, changes and unforeseeable delays
- People – shortages, labour disruptions and insufficient skill-level
- Costs – exchange rates, fines and penalties, estimate errors and spiralling expenses
- Quality – performance, warranty/guarantee exposure, resources available and subcontractor deficiencies
- Contract – funding, lack of clarity, disputes and subcontractor failure
- Client – project complexity and relationship management
- Technology – availability, age and limitations
- Organization – stability, experience, culture, location, management experience
- Market – window of opportunity, labour conditions, financial conditions and competition
- Environment – natural environment, site and facilities, local services, political, legal and cultural environment
With responsibility for all these moving parts, potential liability risks are present with you every minute of every day. You have enough to worry about at any given moment, worrying about getting sued for negligence at every turn can only hurt your decision-making process and your overall effectiveness as a leader. Insurance for Project Managers Professional Indemnity allows you to focus your energies on diligently completing projects without the fear of getting personally sued distracting you, thanks to the reassurance that comes from knowing that you’re protected.
How Project Managers Professional Indemnity Insurance Can Protect You
Project Managers Professional Indemnity Insurance policy can cover you in the event of legal claims of negligence, defamation, breach of confidentiality, conflict of interest, loss of revenue and more. If you are served with a Statement of Claim based on actions covered in your policy, your Project Managers Professional Indemnity Insurance can protect you from bankruptcy by providing:
- The cost of lawyer’s fees, and defence and investigation legal costs
- Loss of income for time spent at hearings or in court responding to the allegations
- Settlement amounts reached to avoid trial
- Damages awarded by a court or tribunal that you are ordered to pay
It’s vital to remember that as Project Manager, you could very well incur these costs whether you made a mistake or not.
As the project manager, you are an easy scapegoat if something goes wrong and losses are suffered. Even baseless allegations can involve escalating legal costs to defend against. And if you are cleared of any wrongdoing, in the end, suing to recover those costs comes with further costs and lost time.
Your Project Managers Professional Indemnity Insurance policy may also provide you with free legal advice that does not affect your limit or require a deductible. Contact an ALIGNED broker for more information.
Coverages Outside of Project Manager Professional Indemnity Insurance Policy You May Also Need
Aside from personal coverage for errors and omissions you get with a Project Manager Professional Indemnity Insurance policy, there are other coverages you may need or need to secure for your organization in the course of your duties. Links to some of those coverages and a brief description of each are below.
Commercial General Liability Insurance (CGL) is a must for any and all businesses and, like Project Manager Professional Indemnity Insurance, provides coverage for expenses stemming from litigation alleging personal injury or property damage due to products, services and/or business practices.
Cyber Liability & Privacy Insurance is no longer only a concern for large, multinational corporations. Cybercriminals have discovered the value in targeting small- and medium-sized businesses for ransomware attacks. Getting locked out of data, systems and devices is not an option for any business and this coverage can cover ransom costs and other expenses that come with a cybersecurity breach.
Commercial Property Insurance provides protection for structures and the contents therein from perils such as fire, flood, sewage backup, gas explosions, vandalism and more. This coverage is also necessary if you act as a consultant out of a home office to ensure that your business equipment is covered.
Commercial Auto Insurance, similar to Commercial Property Insurance, is required even if you’re using a personal vehicle for work-related travel. Collisions occurring during the course of business activities will not be covered by a personal automobile policy.
Trust ALIGNED To Get the Right Project Manager Professional Indemnity Insurance Coverage For You
Like you, we are risk management experts who know that the “devil is in the details”. As brokers who only deal with commercial insurance products, our specialty is in making those details work for you. We’re more than brokers, we’re advocates that work for your best interests. Contact us for a free, no-obligation quote in minutes on Project Manager Professional Indemnity Insurance.
