Some project managers work within the protection of an existing company, which will have protocols, insurance policies, and employee protections already in place. But for project managers who work on a contracted basis, existing company protections remain out of reach.
You may be working within that office, and alongside people who have automatic protection from things like defamation, but you’ll ultimately be your own entity, and face your own risks as a result.
This can be for the freedom it buys you, but it also means that, if you ever need to pay a fine or seek representation from criminal solicitors in light of accusations levied against you, the cost will fall solely on your shoulders. Unless, of course, you’ve already taken the time to implement the following crucial PM insurances.
# 1 – Professional Indemnity
Professional indemnity is a type of insurance that covers you against negligence claims that could include bad advice, data loss, and libel. For example, if you gave what could be considered recklessly bad advice that led to significant losses, your indemnity insurance would cover damages. Equally, if you lost client data either through negligence or through mistakes moving data from, say, paper to digital operations, your indemnity insurance would cover any fines.
Admittedly, it’s important not to lean on indemnity insurance, which still can’t protect you from the reputational damage of such mistakes. But, if you do make errors despite your best efforts, this insurance policy could take a huge weight off your shoulders.
# 2 – The liability package
Contracted PMs operate as separate entities, meaning that they’re liable for things like product damages, employees, and more. A full insurance liability package is therefore key and should cover things including –
Again, each of these policies is going to protect your operations financially, ensuring that you’re never left in financial trouble if your employees have to take time off sick or receive an injury at work, or you accidentally break a computer or something similar while working in another company’s offices.
# 3 – Accident cover
While the insurance policies discussed so far ensure payouts to the companies and people you’re working with, occupational personal accident cover ensures that you never struggle financially from an injury in the workplace.
For instance, if you fell on a construction site and had to take extended leave before returning to work, accident cover would pay a weekly salary to keep your finances in shape during that period. Even if you don’t typically work in hazardous environments, these policies are well worth investing in, as you simply never know when a work-related accident will wipe you out.
Project managers often take so long organising their teams that they never quite get around to organising themselves. But, if you’re a contracted PM working in any field right now, these types of insurance should be a non-negotiable element of your monthly expenses.
