Project Manager professional indemnity insurance from £14/mo

Why do project managers need PI insurance?

Professional indemnity insurance protects you and your business against the costs of claims made by clients who have suffered loss due to your professional advice or work. For project managers, this is particularly important as a single mistake or oversight can result in significant financial liability.

The main risks project managers face include: scope creep, budget overruns, timeline failures

Regulatory requirement: APM strongly recommends all practising project managers to hold professional indemnity insurance.

What cover level do you need?

The amount of professional indemnity insurance cover you need depends on the size of your business, the types of clients you work with, and the potential value of claims. Most project managers opt for cover between £500,000 and £2 million.

The right level of cover depends on the size of your projects, your annual revenue, and any contractual requirements from your clients. Leo's comparison tool can help you explore different cover levels and see how they affect your premium.

How much does it cost?

The cost of professional indemnity insurance for project managers varies depending on:

• The level of cover you choose (typically £500K to £2M)
• Your claims history
• The size and annual turnover of your business
• The specific risks associated with your work
• The insurer and their underwriting criteria

As a guide, project managers typically pay from £14 per month for professional indemnity insurance.

Common claims and risks for Project Manager

Your project planning or management advice leads to significant delays, cost overruns, or failure to deliver project objectives to specification.

You fail to identify or manage key project risks, resulting in preventable issues that cause delays or additional costs.

Your resource or team management advice proves inadequate, resulting in quality issues, team conflicts, or project failure.

You fail to properly document or manage changes, resulting in scope creep, cost disputes, or inability to resolve project disputes.

What's typically covered

Professional indemnity insurance for Project Manager typically covers:

• Project planning and scheduling errors
• Risk identification and management failures
• Resource and team management errors
• Change control and scope management failures
• Project delivery failures or quality issues
• Loss of project documentation or records

Choosing the right policy for Project Manager

Project managers should hold professional indemnity insurance, particularly those managing large projects or critical programmes. Cover of £1M-£2M is typical, depending on project values and complexity. Your policy should cover project planning, risk management, and delivery advice. If you manage major capital projects or mission-critical programmes, ensure adequate cover. APM/PMI membership recommends professional indemnity insurance. Consultants managing high-value or high-risk projects should consider enhanced limits.

Project Manager PI insurance: key statistics

Approximately 22% of project management firms have faced a professional indemnity claim. The average claim is valued at £135,000. Planning and scheduling errors account for 38% of claims, whilst risk management failures represent 32% of claims. Change management failures account for 18% of claims.

Frequently asked questions

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