What limit of indemnity should I require a contracted consultant to take out for professional indemnity insurance?
There is no “one size fits all” professional indemnity policy to cover all consultancies. Selecting an appropriate limit of indemnity should be based on an identification and quantification of the risks involved in the project. In general terms however, for lesser-value consultancies (eg < $100,000), a minimum policy limit of $5 M per claim and in the aggregate is desirable. For higher-value or higher-risk projects, greater limits should be considered that are commensurate with the value of the risks identified. The security of the insurer and currency of the policy are also important. If you require assistance in reviewing your contractors' insurance requirements or documents, you should contact your VMIA Client Service Executive.
