Insurance for Consultants

Why Do Consultants Need Liability Insurance?

General Liability Insurance for your consulting business is a risk management tool that can protect your consulting firm against unforeseen damages in the event of a financial loss. As a consultant, you provide expert advice to your customers. In the course of sharing your expertise and knowledge with fellow business owners, you may accidentally make an error which can cause significant financial consequences. Being in the consulting industry, your clients may become dissatisfied with your performance and respond by suing you for negligence in services provided. In fact, as a consultant, you’ve advised many organizations to purchase liability insurance. So why would your consulting firm be any different? Therefore, like all other kinds of businesses, you face risks associated with making mistakes or errors and negligence while performing your duties and responsibilities. Since business consultants often work with multiple clients and industries, you may also want to know more about options of coverage you can get as a consultant aside from general liability insurance for consultants. Contractors General Liability Insurance will help you understand what your risks are and get you the right coverage. Learn more about other coverages from General Liability, Business Owners’ Policy, Workers’ Compensation and Professional Liability. Contractors General Liability Insurance can provide you with competitive quotes from only the best business insurance carriers.

Understanding Professional Consultants Risks

Consultants face a wide variety of risks simply because of your line of work. Professionals like consultants work closely with clients in many important aspects of their businesses. As a result, consultants are usually indispensable to critical functions within their customer’s business operations. A mistake, however innocent, may have a huge impact on both the interest of your business and your clients. Therefore, the nature of a consultant’s work usually puts him/her at a higher risk for a liability lawsuit among other professions. Almost 90% of consultants choose general liability insurance with a $1 million per-occurrence limit and a $2 million aggregate limit. As your business grows, you may need to expand your policy limits. In fact, higher limits cost more – and provide better coverage. On the other hand, one of the most important types of business consulting insurance to have is professional liability insurance. This policy protects consultants from errors and omissions that may occur while working with clients. Without professional liability insurance coverage, the assets of the consulting firm and the consultant themselves can be at risk. For example, when a marketing consultant gave advice that damaged a business’s brand reputation, a huge lawsuit can be filed against them. Businesses expect that their marketing consultants increase brand reputation not to destroy it. Therefore, marketing consultants face risks associated with the unsuccessful growth of a brand’s reputation. Your type of risks depends on what kind of service you do provide. Give us a call to understand the type of risks your business face today.

Insurance Available to Consultants

Commercial General Liability (CGL)

Insurance is useful to protect your consulting business in the event a client files a suit claiming you caused them an interruption in service or financial loss. For example, if someone got injured or if their property is damaged while you are visiting your client and you accidentally bump into an expensive collection and destroys it. You can be liable for its worth of repair. Also, this policy protects third-party bodily injuries and property damage, along with advertising injuries.

Professional Liability Insurance

Is also known as Errors & Omissions (E&O) insurance. E&O insurance is highly recommended if you provide professional services for a fee, such as consultants, accountants, and lawyers. This policy is meant to protect you if a client files a liability lawsuit specific to negligence if you did not meet your professional obligations. Professional (E&O) liability insurance will safeguard your business against any claims for unintentional mistakes, inaccurate advice, violations of good faith, and general negligence.

Commercial Property Insurance

Covers consulting businesses that rent or own an office. This policy can provide protection against physical hazards to the building, such as fires, windstorms, and broken water pipes. Additionally, whether you rent or own, this insurance can provide coverage for business property stored at your office, such as tools and valuable contents.

Workers’ Compensation Insurance

Provides coverage for your consulting business when employees make claims for work-related injury or illness. This type of insurance is mandatory in most states if your business has employees. Worker’s compensation insurance covers an employee’s partial lost wages while he/she is unable to work, as well as medical and rehabilitation costs.

If you work as a business consultant, then now is the time to learn more about Contractor General Liability Insurance plans and choose the right one for you. Get a fast, free quote now and get that confidence that behind your business, we are here to protect you.