Who needs Business Consultant Insurance?
Consultants who offer the following services should consider insurance:
What insurance does a business consultant need?
General Liability insurance covers property damage if an employee causes property damage on the job. It also covers bodily injury if their actions cause someone else's injury.
Example... An employee accidentally knocks over and damages an expensive piece of equipment belonging to your client. General Liability Insurance covers your business' legal defense costs.
Professional Liability insurance is needed by professionals in technical fields. It covers you for claims made against you resulting from the provision of your professional service.
Example... An engineering consultant miscalculates the parameters of a blueprint, causing loss for the client. Professional Liability insurance covers this loss, and your legal fees.
Workers Compensation protects your employees in the event of a work-related illness or injury.
Example... An employee slips on a wet floor and injures their leg. They give up the right to sue you in exchange for receiving Workers Comp to cover their medical bills and lost wages while recovering.
Business Owners Policy (BOP) is for professionals who want to package together general liability and commercial property cover in one package at a reduced rate.
Example... You provide accounting consultancy services at an office without a ramp. A disabled client trips down the stairs, crashing into a window. BOP covers the repairs, their medical costs and associated legal fees.
Essential for companies that store sensitive client data. Cyber insurance will cover the costs to help your telecoms, tech or media company recover from data breaches or cyber attacks.
Example... Your data processing and consultancy company is hacked clients' bank details are stolen. Cyber Liability covers the legal costs if you're sued, and costs to recover the lost data.
Commercial Auto Insurance covers your company vehicles if involved in a road accident.
Example... On the way back from a job, your company truck collides with a motorcyclist, leading to injury and damage to their motorbike and your truck. Commercial Auto covers their medical bills and repair costs for both vehicles.
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FAQs: Consultant Insurance
What business insurance policies do I need most as a consultant?
General Liability and Professional Liability are among the most popular policies purchased by business consultants. However they are also complemented by other coverages depending on the size of the client portfolio.
How much does business consultancy insurance cost?
The final cost of insurance for consultants will depend on the industry. Different regulations may result in higher, or lower, insurance costs. Obtain a quote to get a better understanding of the total cost.
Professional liability insurance costs consultants on average less than $55 per month, or $650 per year. This policy, often known as errors and omissions insurance (E&O), provides essential coverage for consultants, including legal expenditures connected to professional blunders and negligence charges.
How do I protect myself as a consultant?
Put your rules down on paper and follow them. Establish clear professional limits with your customer and request that they do the same. Agree on working hours and response times, and how calls, meetings, and Skype sessions will be scheduled.
Ultimately, you can’t prevent all risks from occurring, so it’s best to ensure you have insurance cover in place in the event they do.