05 May Insurance for Consulting Businesses
Insurance for Consulting Businesses
Consulting Businesses have specific exposures that are unique to consulting as there are very few other professions rely solely on advising others for income. Advising others on their business operations can be a major liability if this advice was to cause damages. We will go over a few of the most important coverages for any consulting business.
Insurance for Consulting Businesses – Professional Liability
Every consulting business should carry professional liability, period. Professional Liability is a type of liability insurance that is specifically designed to protect you against claims that arise from the advice you give. For example, if you are an IT Consultant and you advise a company to use new software which in turn causes your client to suffer losses, you may be held liable. it is a Professional Liability policy that would provide protection against the legal and attorney costs associations with such a lawsuit. It is very important not to confuse this coverage with General Liability, which is a completely different type of insurance policy.
Insurance for Consulting Businesses – General Liability
As mentioned above, it is very important that you understand the difference between Professional Liability and General Liability. General Liability covers property damage and bodily injury claims that occur from your business operations. An example of a General Liability claim would be if your client came to your office and tripped on a wet floor, causing bodily injury. General Liability is very affordable for consultants and often provides millions of dollars in coverage. In addition to the General Liability,
you can usually include Business Personal Property coverage onto the policy for a nominal cost.
Insurance for Consulting Businesses – Workers Comp
If you have employees, you are required to purchase a Workers Comp policy to cover them if they get injured on the job. Workers Comp for consultants is relatively inexpensive compared to other businesses because employees have a lower chance of getting seriously injured compare to, let’s say, a construction company. In some cases you can bundle your Workers Comp with your General Liability carrier and receive discounts the policies.
Do you own or manage a consulting business? Would you like to learn more about the programs available to you?
Call our consulting business specialist at 925-297-4829.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.