Business Consultant Insurance FAQs

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Insurance Policies Available for Business Consultants:

• General liability insurance
• Professional liability insurance
• Workers compensation insurance

Benefits

With consultant insurance, you can typically be financially protected if:

• There’s an accident, injury, or loss at your office.
• You’re accused of an error or omission that results in financial loss.
• One of your employees gets injured on the job and needs time off.

What Type of Insurance is Best for Consultants?

Commercial general liability insurance

The first type of plan you may need is commercial general liability insurance (CGL). This insurance policy can protect your consulting business if there’s an accident or third-party injury at work, or if you have damage to your property. It can also protect you if your business’s reputation is damaged, and as a result, you experience a loss in revenue.

Sound unlikely? It’s more common than you might think. Many small business owners may experience third-party accidents and damages that can lead to claims. These incidents come at a price, too. In fact, it’s estimated that the average property damage claim is about $30,000!

An example:

Imagine you rent office space, and one of your clients visits for a meeting. The floor is slippery because it’s been recently washed. As a result of the slippery surface, your client falls and injures her head. A few weeks later, you discover your client is suing you over medical bills and emotional damage.

If you don’t have business insurance, you’ll likely need to hire a lawyer and pay to defend yourself out of your own pocket. Fortunately, commercial general liability insurance is designed to protect you and can cover many of the costs associated with a lawsuit.

Here’s what you can expect general liability insurance to cover:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

However, it usually doesn’t cover:

• Property damage
• Professional services
• Workers compensation or an employee’s injury
• Damage to your work
• Vehicles while in business use
• Expected or intentional injury or damage

Professional liability insurance

As a consultant, you may advise companies in major business decisions and carry a lot of responsibility. That’s why you need professional liability insurance. This type of policy can protect you if you’re accused of an error or omission in your work.

Here’s an example. Imagine you give business advice to one of your clients, but the outcome ends up being unfavorable. Your client experiences a financial loss and, as a result, decides to sue you, claiming that your advice was negligent.

Without professional liability insurance for consultants, you would need to hire a lawyer to defend yourself, and potentially, pay settlement fees too. With professional liability insurance, however, these costs can be covered, up to your policy limit.

The truth is, you never know what can happen. Even the best consultants make mistakes and offer poor business advice. That’s why it’s smart to protect yourself before accusations happen.

Generally, professional liability insurance may cover:

• Negligence or alleged negligence
• The cost of hiring a lawyer
• Omissions or alleged omissions
• Claims and damages
• And more

It usually doesn’t cover:

• Intentional negligence
• Bodily injury
• Property damage
• False advertising
• Patents and trade secrets
• And more

Workers compensation insurance

Do you have employees working for you? If so, you may need workers compensation insurance. Even if your employees are part-time, you may need to make sure you’re covered. To be safe, you may want to get workers compensation insurance as soon as you hire your first employee.

Here’s why—work injury costs can be exorbitant. In 2017, they added up to about $170.8 billion. Not only that, but the average worker’s injury claim is $41,000. Without workers compensation, you could end up paying for your employee’s medical bills, emergency room visits, medications, and more. Plus, you might have to pay for lost wages.

In general, workers compensation can cover:

• Medical costs
• Lost wages during a worker’s time off
• Rehabilitation expenses
• Death benefits

It usually does not cover:

• Client or vendor accidents
• OSHA fines
• Work safety improvements
• Wages for a worker who replaces the injured employee

Why You May Need Consultant Insurance

Without it, you could be financially at risk.

Many consultants don’t consider themselves small business owners. But this couldn’t be further from the truth. Your business is important, and your clients depend on you. But, as a business owner, it also means you’re at risk for getting sued.

Did you know 43% of small business owners say they’ve dealt with lawsuits or the threat of one? That’s nearly half. These lawsuits are usually the result of accidents, injuries, and revenue losses—and they can happen to anyone.

Protect yourself by getting commercial general liability and professional liability insurance first. You’ll be thankful if an expensive claim arises, and you’re financially secure.

At Simply Business, we want to protect your consulting business. That’s why we make it easy to compare quotes online, so you can find the policy that’s right for you.

Anyone can get sued by a client.

Many consultants don’t think they could get sued. But the truth is, it can happen to anyone. If a business deal goes bad or your advice didn’t pan out, a client could blame you. If you rent office space or hold client meetings, you’re also at risk if there’s an accident or injury.

The team at Simply Business is here to protect you. Our plans are designed to help cover you and keep your business running, no matter what the future holds.

Why Choose Simply Business?

As a business consultant, you carry tremendous responsibility. You’re partnering with companies, offering business advice, and impacting revenues. It’s also a fast-moving profession that carries a lot of risk.

At Simply Business, we care about consultants like you and want to support your growing business. We’re a thriving insurance brokerage who offers access to nationwide business insurance plans. You can count on us to look out for your best interests today—and in the future.

Need more reasons to choose us?

We promise to put your business first. We want you to be successful. If you need coverage, our licensed insurance agents will guide you and help you select the best policy. Our team is knowledgeable, trustworthy, and concerned about your livelihood.

We simplify getting business insurance. Insurance doesn’t have to be complicated. We simplify business insurance, so you can easily understand how your plan works. Plus, we make it fast to get a plan in the first place. Use our free quote form to start comparing plans today.

Remember, no business consultant is immune to risk. The earlier you get business insurance, the better off you’ll be. Get a free quote today.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.