No matter the case, it is always wise to secure yourself with business insurance rather than pay for such damages right out of your pocket. Now, single insurance coverage won’t cover all instances of damage to your consulting business.
Different types of coverage have different terms and conditions, and it can get tricky to figure out which one suits your needs the best. Let’s take a deeper look into the kinds of business insurance that consultants should consider:
Error and Omissions Insurance is more commonly known as Professional Liability Insurance. Since consultants are privy to classified information and are held to high standards of quality, clients tend to file lawsuits in case of even the slightest of negligence.
Whether you are providing consultancy regarding marketing or technology, your services are crucial for the client to shape their business and generate revenue. In case that your negligence causes them financial loss, they will hold you accountable.
To take care of any such unfortunate and unforeseen proceedings, E&O insurance can be beneficial. Thus, if a client sues you for their business loss, E&O insurance will help you cover legal fees associated with the issue. If you are required to compensate them for damages, and E&O insurance would help you cover the compensation as well.
General Liability Insurance
Accidents can happen at any time. However, if they happen on your office property or while you are conducting business, you might be held responsible for the event.
A client might sue your consulting business if they suffer a bodily injury in your office. A client might also sue you if you happen to break an artwork while conducting business with them in their office.
To protect your consulting business from such unforeseen payments, general liability insurance can be made use of. Remember, even if you are in an industry where serious accidents do not happen very frequently, you might still need to cover yourself in case of accidental slips and falls.
Commercial Property Insurance
This type of insurance could be beneficial for consultants who operate out of an office space or have employees who are seated in an office space. Whether you rent or own the complete office building or a suite in the building, the property is prone to numerous kinds of damages. A fire might break out, the property may get flooded, furniture might be stolen, or the place might be destroyed due to acts of vandalism.
Commercial Property Insurance protects a consulting business from any such damages. Now, when your commercial property is destroyed due to a thunderstorm or a leaky pipe bursts in your office, you wouldn’t need to pay high upfront costs of fixing anything.
Cyber Liability Insurance
A consulting business usually works with a lot of data provided by its clients. This data is classified and needs to be handled with care. Plus, a consulting business also deals with a lot of their own data. Now, this data is also highly prone to cyberattacks and data breaches. The resulting in financial and reputation loss can be crippling for a business.
Cyber Liability Insurance helps consulting businesses protect themselves against such cyber attacks. This insurance coverage usually takes care of restoring data, credit monitoring for clients, paying ransoms, and more.
Business Owner's Insurance
If you are an individual consultant or your consulting business is still on a small scale, you might not need to invest in a full-fledged General Liability Insurance or Commercial Property Insurance. These covers can be quite costly, and your small business might not need coverage for all of the things mentioned.
A Business Owner's Insurance combines certain things from both these policies and enable the consultant to receive benefits in a single consolidated package. Your preferred insurance company will be able to provide you a comprehensive view of how your needs can be included in a customized Business Owner's Insurance coverage.
Worker’s Compensation Insurance
Lastly, a consulting business might also want to look into a Worker’s Compensation Insurance. The Worker’s Compensation Insurance is mandatory insurance coverage for a business to have in most states if they have employees. This coverage is beneficial if you have employees working for you. The costs of work-related injuries or illnesses caused to the employees can be covered using this insurance coverage.
It also helps cover the costs of rehabilitation. If applicable, a Worker’s Compensation Insurance can also take care of any partial lost wages of the employee. This helps a consulting business save money in immediate costs and rather keep it in their accounts receivable for a longer time.
Visit Bizinsure website to know more about the various types of business insurance.