A project manager is paid to make other people's expensive things happen on time. When they do not, the loss belongs to the client and is measured against the project rather than the fee, which is the whole shape of the insurance question.
The claim is delay, cost or a decision
Programme slippage, a cost overrun, a procurement decision that turned out badly, a risk not escalated, or a contract administered wrongly. Each is a financial loss flowing from the service, so professional indemnity is the operative cover. Written on a claims made basis, it responds when the claim arrives rather than when the work was done, which for projects with long defects periods can be years later.
The limit follows the project, not the fee
A project manager on a modest fee can be running a project worth many multiples of it, and a claim is sized by the client's loss. Client contracts usually name the limit for that reason, and the figure is frequently what makes the insurance conversation real for a small consultancy. Aggregate limits matter too: a limit expressed in the aggregate can be exhausted by one project, leaving nothing for the others that year.
Construction roles carry named duties
On construction projects a project manager may also be contract administrator, employer's agent, or hold a duty holder role under the construction regulations. Each carries specific obligations, and insurers ask which roles are undertaken because the exposure differs sharply. A consultant who took the principal designer role, for example, has accepted statutory duties that go well beyond programme management and needs the policy to say so.
Site visits, subconsultants and the rest of the programme
Public liability covers the manager visiting a live site, which client contracts require. Where the consultancy engages subconsultants, their errors reach the client through you and their own cover should be evidenced. Run off matters at the end, because a consultancy that closes leaves projects with years of latent defect potential behind it, and the claims made basis means run off is the only thing that answers them.
Questions people ask about project management insurance
What limit does a project manager need?
One sized to the client's possible loss rather than the fee. Client contracts usually name it, and aggregate limits can be exhausted by a single project.
Do construction roles change the cover?
Yes. Contract administrator, employer's agent and duty holder roles under the construction regulations carry specific obligations and must be declared.
Why does run off matter?
Professional indemnity is claims made, so a consultancy that closes needs run off cover to answer claims about completed projects that arrive years later.