Risk & Insurance Advice for Advisory Board Members

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Understanding Your Advisory Role

At Clear Insurance, we understand the unique position of advisory board members. You provide valuable strategic guidance, industry expertise, and independent perspective to businesses, yet you may face professional liability exposures that differ from traditional directors.

We specialise in providing insurance advice to advisory board members, non-executive advisers, and strategic consultants who serve on advisory boards for private companies, family businesses, and growing enterprises across Australia.

Whether you’re an advisory board member for a single company or serve on multiple advisory boards across different industries, we help you understand the insurance considerations relevant to your advisory activities and guide you towards appropriate professional protection.

Professional insurance guidance for advisory board members and non-executive directors

We work with experienced professionals serving on advisory boards including:

Industry Specialists

Subject matter experts providing advisory board services in specific industries including technology, healthcare, professional services, manufacturing, and hospitality.

Retired Executives

Former senior executives serving on advisory boards and providing strategic guidance based on extensive industry experience.

Professional Advisers

Accountants, lawyers, consultants, and other professionals serving on advisory boards while maintaining separate professional practices.

Technical Specialists

Engineers, technology experts, and specialists providing technical advisory services to businesses outside their primary employment.

Marketing and Growth Advisers

Marketing professionals, sales experts, and growth strategists serving on advisory boards for scaling businesses.

Financial and Investment Advisers

Financial professionals serving on advisory boards (distinct from financial planning or investment advice services).

Operational Improvement Specialists

Operations experts, process improvement specialists, and supply chain advisers serving in advisory board capacities.

Governance and Risk Advisers

Governance specialists and risk management professionals serving on advisory boards, particularly for private companies and family businesses.

Understanding Insurance Needs for Advisory Board Members

Advisory board members face specific exposures that require careful consideration and appropriate insurance protection.

Professional Indemnity Insurance

Protection for professional advice and strategic guidance provided to businesses:

Advisory Services Liability

Coverage for claims arising from strategic advice, recommendations, or guidance provided to boards, management, or business owners.

Professional Negligence Claims

Protection against allegations of errors, omissions, or breach of duty of care in your advisory capacity.

Economic Loss Claims

Coverage for claims alleging financial loss resulting from your advice or recommendations.

Breach of Professional Duty

Protection if clients allege you failed to meet professional standards expected of advisory board members.

Extended Reporting Period

Long-tail protection for claims made years after advisory engagements conclude, essential for advisory board members who may face delayed claims.

Multiple Advisory Board Coverage

Appropriate insurance arrangements when serving on several advisory boards across different companies or industries.

Management Liability Considerations

Understanding your position within management liability coverage:

Advisory vs. Statutory Director Roles

Clarifying the distinction between advisory board members and statutory directors, and how this affects insurance coverage.

Company Directors & Officers Insurance

Understanding whether the company’s D&O insurance extends to advisory board members, or if separate coverage is needed.

Side A, B, C Coverage Considerations

Knowing what protection exists if company insurance doesn’t respond or is exhausted.

Entity vs. Individual Coverage

Understanding whether you’re covered as an individual advisory board member or only through the company’s insurance.

Defence Costs Protection

Ensuring you have access to legal defence funding if claims arise from your advisory activities.

Insolvency and Liquidation Scenarios

Protection if the company you advise becomes insolvent and company insurance is unavailable.

Advisory Board-Specific Considerations

Unique insurance matters for advisory board members:

Appointment Terms and Insurance Obligations

Understanding what insurance protection (if any) is required under your advisory board appointment terms.

Company Insurance Verification

Confirming whether the company you advise has appropriate D&O or professional indemnity insurance that extends to advisory board members.

Multiple Board Positions

Insurance considerations when serving on several advisory boards, including appropriate coverage limits and potential conflicts.

Industry-Specific Exposures

Understanding risk exposures specific to the industries where you provide advisory services.

Transition from Advisory to Statutory Roles

Insurance implications if your role transitions from advisory board member to statutory director.

Remuneration and Insurance

How being paid (or unpaid) as an advisory board member may affect insurance coverage and obligations.

Common Advisory Board Scenarios

Real situations advisory board members face:

Strategic Advice Claims

Claims arising from strategic recommendations that don’t deliver expected outcomes, including market entry strategies, acquisition advice, or operational recommendations.

Financial Guidance Disputes

Allegations that financial advice or guidance provided to management was inappropriate or contributed to business losses.

Governance Recommendations

Claims related to governance advice, including recommendations about management structures, risk frameworks, or compliance approaches.

Technology and Digital Strategy

Liability for advice on technology investments, digital transformation, or cybersecurity strategies that don’t meet expectations.

Exit Strategy and M&A Advice

Claims arising from advice on business sales, acquisitions, or exit strategies that result in perceived financial loss.

Succession Planning Guidance

Disputes arising from advice on succession planning, particularly in family business contexts.

Common Insurance Types for Advisory Board Members

Based on our experience advising advisory board members, here are commonly discussed insurance types:

Professional Indemnity Insurance

Essential protection for advisory board members providing strategic advice, recommendations, or guidance. Coverage for claims alleging professional negligence, errors, omissions, or breach of duty of care arising from your advisory activities.

Directors & Officers (D&O) Insurance

Protection for advisory board members who also hold statutory director positions or whose advisory role exposes them to director-like liabilities. Coverage for wrongful acts, breach of duty allegations, and regulatory investigations.

Management Liability Insurance

Comprehensive protection including aspects of D&O, employment practices liability, and statutory liability coverage, particularly relevant for advisory board members with broader governance involvement.

Cyber Liability Insurance

Protection if you handle sensitive company information, strategic plans, or confidential data as part of your advisory board activities and a data breach occurs.

Public Liability Insurance

Coverage for third-party injury or property damage claims, though typically less relevant for advisory board members than professional indemnity protection.

Business Insurance

For advisory board members operating as consultants or through corporate advisory entities, standard business insurance including office premises, equipment, and business interruption cover.

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Our Approach to Advisory Board Member Insurance

Understanding Your Advisory Role

We start by understanding your specific advisory board positions, the industries you advise, your appointment terms, and the nature of advice you provide. This comprehensive understanding helps us identify the insurance requirements relevant to your advisory activities.

Insurance Position Assessment

We review your current insurance arrangements and assess whether the companies you advise have appropriate D&O or professional indemnity insurance that extends to advisory board members. You’ll receive a clear assessment of your insurance position.

Tailored Advice

We provide clear recommendations on appropriate insurance options for your advisory board activities, explaining complex policy terms and coverage considerations in straightforward language. Our advice considers your specific advisory roles, industries, and risk exposures.

Professional Market Access

Through our Steadfast network membership and relationships with Australian insurers experienced in professional indemnity and D&O insurance, we help you access appropriate coverage for your advisory board activities.

Ongoing Support

As your advisory board positions evolve, whether taking on new advisory roles, transitioning to statutory director positions, or changing industries, we provide continued advice and assistance with policy adjustments and annual reviews.

Insurance Services for Advisory Board Members

D&O and PI Policy Review

Assessment of existing company D&O and personal insurance to verify coverage for your advisory board activities and identify any gaps.

Appointment Terms Review

Guidance on insurance and indemnity clauses in your appointment letters, ensuring appropriate protection is in place before you commence your role.

Professional Indemnity Placement

Arranging tailored professional indemnity insurance for your advisory activities, with appropriate limits reflecting the industries you advise.

Multiple Board Position Coverage

Structuring a comprehensive insurance program when you serve on several advisory boards, ensuring seamless coverage across all positions.

Transition Coverage

Guidance on insurance needs when transitioning between advisory roles or from an advisory to a statutory director position.

Claims Support

Hands-on assistance with claims notification and managing the process if allegations arise from your advisory board activities.

“Clear Insurance has been our trusted allied health insurance provider for many years. They offer comprehensive coverage and personalised recommendations. Their knowledgeable advisors and proactive approach have been invaluable, especially during industry changes. Their efficient claims handling process and commitment to customer service make them an outstanding choice.”

Helen Weston, Managing Director, Mobile Rehab

“We couldn’t be more pleased with the outstanding service provided by Lisa and her team from Clear Insurance in renewing our new insurance policies. Their dedication, attention to detail, and responsiveness made the entire process seamless and stress-free. They took the time to understand the needs of our business and found us the best available coverage at competitive rates. We highly recommend anyone looking for a knowledgeable and reliable insurance partner to get in touch with Lisa and the team from Clear Insurance!”

Danny Flaskas, Chief Financial Officer, Maroochy RSL

“We’ve been so impressed at the high-quality service provided by Clear Insurance. They were very thorough when assessing our insurance needs, ensuring that they completely understood our business before making any recommendations. Thank you, Lisa and the team!”

Kathryn Visser, Chief Financial Officer, R6 Digital

“Clear Insurance has become a key partner for WorkSafe Connect. Lisa and the team have ensured that we understand the risks associated with our business interests and have helped us decide on the cover we need. From taking over an existing set of policies to the full re-marketing of our portfolio, the quality of service, transparency of advice and responsiveness to any request is outstanding. In Clear Insurance, we feel that we are working with a partner who wants the best result for our business and is helping us achieve success.”

Kathryn Lattin, Worksafe Connect

“I have had such a good experience with Clear insurance. They recommended to me many changes to my old policies and in less than 4 months the difference saved me $80,000 so I am over the moon. They absolutely know their area of expertise. Thank you to Clear insurance and yes, I can’t recommend them enough.”

Darren Jansz, Yabbit

“Clear Insurance completed an in-depth analysis of our insurance coverage, identifying our organisation was under-insured. They provided a comprehensive proposal specific to the context that we work in and our growth as a business. It is evident to me, Clear Insurance work diligently and tirelessly to truly understand the needs of their clients to protect them against potential risks.”

Rebecca Culverhouse, CEO, Accoras

“All the work you guys do to help us, we are really grateful.”

Debbie Green, Finance Officer, Logan's Nursery

“I note your disclosure of the Advisor Service Fee and think that this adds veracity to the insurance renewal process.”

Mary-Ann Cook, Managing Director, Sureplan Friendly Society Ltd

“It’s refreshing to get great service!”

Cheryl Kelly, Office Manager, Fitout Glass and Aluminium

*These testimonials represent individual client experiences. Results vary based on circumstances, requirements, business operations, and market conditions.

Servicing Advisory Board Members across Australia

We advise advisory board members in Brisbane, Sydney, Melbourne, Gold Coast, and throughout Australia. Our team understands the professional liability exposures faced by advisory board members, the distinction between advisory and statutory roles, and insurance requirements for professional advisers serving in governance capacities.

Whether you’re an experienced executive serving on multiple advisory boards, a subject matter expert providing industry-specific advice, or a professional adviser serving in advisory board capacities, we provide expert guidance tailored to your advisory activities.

Frequently Asked Questions

Do I need my own professional indemnity insurance as an advisory board member?

It depends on your appointment terms and whether the company you advise has D&O or professional indemnity insurance that extends to advisory board members. We can review your specific situation and advise whether additional personal insurance is appropriate.

What’s the difference between advisory board members and statutory directors?

Advisory board members typically provide strategic advice and guidance but don’t have the statutory duties, powers, or liabilities of directors under the Corporations Act. However, the distinction isn’t always clear-cut, and your insurance needs depend on your actual role and activities.

Does the company’s D&O insurance cover advisory board members?

Sometimes, but not always. Some D&O policies extend to advisory board members, while others specifically exclude them or only cover statutory directors. We can help you verify whether company insurance provides coverage for your advisory role.

What happens if I serve on multiple advisory boards?

You need to ensure your insurance coverage is adequate for all advisory board positions, considering the cumulative exposure across different companies and industries. We can structure appropriate coverage for multiple advisory board roles.

How much professional indemnity cover do advisory board members need?

Coverage requirements depend on the industries you advise, the size of companies you advise, and potential claim exposures. Common limits range from $1M to $5M or higher for advisory board members working with substantial companies.

What if I’m not paid for my advisory board role?

Being unpaid doesn’t eliminate potential liability exposures. You still provide advice and guidance that could lead to professional negligence claims. Insurance protection remains important regardless of whether you receive remuneration.

Do I need insurance if my advisory role is informal?

If you’re providing strategic advice or recommendations to businesses in an advisory capacity—even informally—you may face professional liability exposures. We can assess your specific situation and advise on appropriate protection.

What’s covered under professional indemnity for advisory board members?

Typically covers defence costs and damages arising from claims of professional negligence, errors, omissions, or breach of duty of care in providing advisory services. Coverage specifics depend on policy wording, which we can explain in detail.

Important Information: The information on this page is general information only and doesn’t consider your specific board role circumstances. We recommend personalised advice appropriate to your advisory board activities. This doesn’t constitute legal advice regarding director duties or governance obligations, seek independent legal advice. Coverage considerations differ depending on whether you serve personally or through a corporate entity, and whether the organisation provides directors and officers insurance. Before entering into insurance, you have a duty to disclose anything that may affect an insurer’s decision to insure you. Read our Duty of Disclosure. View our Financial Services Guide for full details about our services and remuneration. Clear Insurance Pty Ltd | ABN 41 601 916 689 | AFSL No. 548953

Last updated: 14 January 2026