Project management never quite goes the way you think it will. As a project manager, you’ve likely come across numerous instances where things have gone a little off the rails, whether that’s due to unexpected delays, budget overruns, or resource shortages. That’s the reality of managing a project, but it’s your job to ensure – even if things take an unexpected turn – that the project gets back on track quickly and remains flexible enough to deliver the desired results.
With that being said, sometimes that isn’t possible. According to current project management statistics, a whopping 70% of projects failed in 2024 – with said failures including being unable to finish on time, staying within budget, or simply fulfilling the original scope. In events like these, you need to make sure you’re prepared for the fallout and have put the necessary steps in place to minimise the damage and, effectively, pull the project back from the ashes. This is where insurance coverage becomes so crucial.
What is Project Management Insurance?
In 2025, you have the ability to protect your project with tailored solutions designed to save you from financial loss or any legal issues that may arise during the execution of a project. The most popular insurance, in this instance, is known as general liability insurance, which covers everything from damage to third parties – such as bodily injury or property damage – to legal defence costs, medical payments, and claims of negligence.
Hopefully, none of these instances befall your project management, but in the event they do, having business insurance like this can be the difference between successfully navigating the situation or facing financial ruin. With general liability insurance, you’re better equipped to handle the unexpected and protect your project, your team, and your clients from heavy costs, ensuring that you have the resources to manage the aftermath if things go off course.
Another reason why it’s so important is because it helps maintain your business’s reputation. There’s every chance that, even if things go off track, the difficulties you’ve faced during a particular project are dealt with. Finishing the project – or at least settling it – is a good thing, of course, but as we mentioned before, a great deal of projects are considered ‘failures’, and those failures can have a significant impact on your reputation. With the project manager being held responsible, it’s easy for word to spread about badly navigated setbacks, and your reputation to flounder as a result. With general liability insurance, however, you can handle the legal and financial consequences of a failure more effectively, ensuring that, while the project may not have gone as planned, your business maintains its credibility and keeps moving forward, preserving your professional relationships and long-term growth opportunities.
What’s Stopping Project Managers Getting Insurance?
With all the protections general liability insurance can ensure, the question is what’s stopping project managers from attaining it in the first place? Even outside of the project management industry, it’s been reported that nearly 50% of all SMEs don’t have insurance, with one of the most common reasons being a lack of financial resources. In 2025, however, insurance doesn’t have to be expensive. On the contrary, with numerous advancements in the insurance industry, businesses now have access to more affordable and flexible coverage options than ever before, with the ability to tailor general liability coverage to fit their specific needs without paying for unnecessary extras.
Whether you’re a small startup or a mid-sized project management firm, you can find insurance policies that are scaled to your business’s size, budget, and risk level, helping you to save money in the long run and ensure a single ‘failed’ project isn’t enough to ruin your reputation. The important thing is awareness. Many businesses are still unaware of how insurance has changed and how, with the right research, they can find a policy that works for their specific operations. So now that you’re aware, it’s your job to look into your options and attain the necessary insurance to help secure your company’s future.
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