Whether it’s analyzing company challenges, developing and implementing solutions, or creating strategies, there’s a lot you should know when you’re a management consultant. However, one area you may not be as familiar with is business liability insurance.
Understanding the Risks Management Consultants Face
You’re likely adept at helping clients identify and mitigate business risks, so it can make sense to take a look at what risks your business could face. Here are several:
- Mistakes and dissatisfied clients
- Cyberattacks and data breaches
- Third-party accidents and property damage
- Damage or theft of your property
- Employee injury or illness
How to Choose The Right Insurance Coverage
A good first step to protect your business financially is to assess the risks you may face and consider coverages that can help.
1. Mistakes and dissatisfied clients
Without doubt, mistakes and errors can occur. But what about when it’s not so clear-cut that you actually made a mistake? Imagine you provide business advice to one of your clients, but their outcome ends up unfavorable. Your client experiences a financial loss, and as a result decides to sue you, claiming that you provided negligent advice.
That’s a situation where professional liability insurance can help. It can provide coverage for damages and legal costs for mistakes or negligence claims.
Even if you go to court and a jury determines that you did nothing wrong, professional liability insurance could help cover the legal costs to defend yourself.
2. Cyberattacks and data breaches
Firewalls, VPNs, and anti-virus software can help prevent successful cyberattacks. However, even one data breach or cyber incident can result in significant financial impact for your business.
That’s why we often recommend cyber liability insurance. This type of financial protection can help cover claims associated with stolen customer data, cyberattacks, breaches, and fraud.
If you’ve suffered a data breach or other cyberattack, the required responses can often be expensive and time-consuming. For example:
- Finding and fixing the breach
- Notifying your clients
- Providing credit monitoring for affected clients
- And more
With our online quote form, there’s an excellent chance we can provide you with a cyber insurance quote in under 60 seconds.
3. Third-party accidents and property damage
You may think insurance that covers accidents or property damage to someone else’s property wouldn’t be important for a management consultant, but consider this: One of your clients slips and injures their head while visiting you in your office. A few weeks later, your client is suing you for medical bills and emotional damage.
General liability insurance coverage could help cover the medical costs, as well as your legal expenses. In addition, this small business liability insurance is also designed to cover damage to someone else’s property that occurred as part of your normal business.
It also can cover instances of personal or advertising injury, such as claims of stolen ideas, invasion of privacy, libel, slander, and copyright infringement related to advertising.
4. Damage or theft of your property
Almost every business owner wants to protect their own property. Including business personal property coverage as part of your insurance portfolio can help cover the costs of replacing or repairing equipment, furniture, fixtures, and inventory that you own, use, or rent inside your workspace.
5. Employee injury or illness
If you have employees as part of your management consulting business, you should consider workers’ compensation insurance. Workers’ comp is designed to financially protect your business and help take care of employees who get sick or injured on the job.
Workers’ comp is often required by law for full-time and part-time workers. However, each state has different requirements, so we recommend checking with your state government to find out how those laws may apply to your business.
Get Insured in Under 10 Minutes
Get an affordable and customized policy in just minutes. So you can get back to what matters: Your business.
Looking to Consult with a Business Insurance Expert?
Small business insurance is what we do. We built our online platform as a one-stop resource for the coverages many small businesses need. In just 10 minutes, we can find a business insurance quote for management consultants like you.
We’ve helped insure over 1 million small business owners worldwide. We also have consistently high ratings from Trustpilot and the Better Business Bureau.
You can compare coverages from leading national insurers and choose the one that works best for you. If you have questions or need help choosing, our licensed insurance agents are a call away at 844-654-7272, Monday-Friday, 8 a.m.-8 p.m. (ET).
If you’re looking for more information regarding protecting your management consulting business, here are some resources we recommend: