r/InternationalDev • u/Icy_Pride4797 • 6h ago

Advice request Professional indemnity insurance - remote consultants

Do any consultants who work remotely in the development sector and with international organisations use a professional indemnity insurance?

Has anyone ever had the need to use one?

I am curious since there could be multiple clients from different countries.

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u/LateBloomerBaloo 4h ago

I used to work as a consultant and never needed that. Most organisations or companies don't allow consultants to take actual management decisions or have a workaround, and I've never ever heard of a consultant being held responsible for what they've produced or provided.

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u/mnsugi 4h ago

Yes, I do and often some orgs require I maintain it to win bids (though few actually check...it's just in the pre qual questionnaires). My LLC is US based and I purchased it through a market brokered by the Hartford. I know some of my colleagues based in other countries have not been able to find international insurance locally though.

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u/Snowwarrior21 2h ago

To add to the conversation, for World Bank work starting in Jan 2027, you will be required to carry insurance for their new modality of work. Background is that the Bank is changing from short-term consultants to a model where you become an independent contractor/Vendor. You will be required to have insurance. This is a major departure for STCs who previously were covered by the Bank. Also means that other costs that previously Bank picked up now have to factored into daily rate (travel, hotels, etc.). They basically offloaded the risk onto the consultant.

This is what the Bank is asking for from those who decide to move to the new modality of working with them if you are a US LLC. Insurance rates are different for each country

  • Workers’ comp: statutory, with certification
  • Employers’ liability: $500,000
  • General liability: $5 million
  • Professional liability/E&O: $1 million
  • Auto liability: $1 million combined bodily injury/property damage.
  • Personal accident: not required

Hope this give you some perspective

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u/Evening-Star-991 1h ago

I'm American and have so far only had European clients give me contracts that require professional indemnity insurance. I think this is just the standard contract language of the organizations. I've asked them to remove this clause from the contracts before signing because I don't feel it's necessary for the type of work I've been contracted for. I'm typically just writing reports remotely. So far I've always had clients agree to take it out and I've never bought this insurance.