Insurance for project managers
Project managers play a leading role in planning, executing, monitoring, and completing projects of all kinds across several industries. They are responsible for everything involved in a project, including the budget, team, and resources required throughout a project lifecycle. To be a successful project manager, you need a strategic mindset, team building and change management expertise, and effective communication skills. You also must protect yourself from the risks of third-party lawsuits if you’re held liable for errors or omissions, whether real or perceived, resulting from the services and advice you provide.
What is project manager insurance?
Project manager insurance is a specialized professional liability policy designed to cover project management professionals and businesses if they cause or are alleged to have caused a financial loss to one of your customers. In general, project managers may face allegations of professional negligence, inaccurate advice, and loss of confidential documents or blueprints. A third-party lawsuit can cost you several thousands of dollars and severely damage your professional reputation. A customized project manager insurance policy covers your legal defence costs and any court-rendered settlement or judgment against you, whether the allegations you face are legitimate or not.
What does it cover?
Project management insurance is designed to cover the risks project managers are most likely to face. Those risks will vary depending on your project and industry. However, the following coverages typically comprise an extensive project managers’ insurance policy:
- Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, professional liability insurance protects project managers against claims alleging financial loss due to a service you provided, as well as lawsuits alleging negligence, misrepresentation, libel and slander, inaccurate advice, and failure to deliver a service as promised.
- Cyber Liability Insurance: Cybercrime is one of the greatest threats of our time that all project managers and small business owners face each day. Because most business is conducted digitally nowadays, protecting your technology systems and confidential customer data is not only imperative but also your responsibility. Cyber liability insurance is designed to cover costs associated with cyber-attacks and data breaches that result in a loss of income, compromise your customers’ privacy and data, and technology infrastructure repair. If you are sued for third-party damages resulting from a data breach, cyber liability insurance can help you recover quickly.
- Commercial General Liability (CGL) Insurance: Whether you work from home or have an office, accidents can happen anywhere. CGL can protect project managers against common claims or lawsuits alleging third-party bodily injuries, such as a slip-and-fall on your property, property damage, false advertising, and libel or slander. If you are sued by one of your customers because of bodily injury, for example, CGL covers your legal defence expenses regardless of the lawsuit’s outcome, and the injured person’s medical expenses.
- Legal Expense Insurance: Legal expense insurance provides you with access to general legal advice from an experienced lawyer and covers legal expenses you incur. It also provides financial support if you are involved in employment disputes, contract disputes, or require tax protection and debt recovery services.
Do project managers need insurance?
Any professional providing consultation, advice, and project management services to a customer should have adequate project manager insurance, including:
- Architectural project managers
- Construction project managers
- Electrical project managers
- Engineering project managers
- IT project managers
- PMO project managers
- Senior project managers
- Systems project managers
- Technical project managers
- And many more…
How much does it cost?
The cost of an annual premium for a project manager starts at $600 per year for a $1M professional liability coverage. Although rates will varies depending on the types of coverages you need, and the risks you face. Other factors that determine your premium includes:
- Where you are located
- Your years of experience
- Your annual and projected revenue
- The types of services you provide
- The types of projects you are responsible for managing
- Previous insurance claims you have made
Fill out our 5-minute online application to get your free project management insurance quote.
Common claims scenarios
Frequently asked questions