Business Consultant Insurance: Cost & Quotes from $7

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Anyone can be a businessman. However, not all have the knack for it. Business consultants are the professionals that help inexperienced business owners create a solid plan, implement management systems, promote campaigns, develop projects, etc. They often work with financial consultants to ensure that businesses thrive and succeed.

Though working in the four corners of an office, there are many things to worry about. For example, what if a marketing consultant you’re working with can’t give deliverables on time?

There are also times when you’re hired to improve the human resources of a business and employees, who disagree with how you manage things, might file a claim. 

Consider getting insurance as a business consultant. Business consultant insurance will allow you to reimburse the financial losses of clients. You can also use this to cover defense costs if employees accuse you of violating their rights. In this guide, further know how this works, the cost of premiums, and the best companies.

What is Business Consultant Insurance?

Business consultant insurance offers the policies you need as a business consultant-$1 million professional liability and $1 million general liability insurance. Other insurance policies are also available such as commercial property, worker's compensation, cyber liability, and more.

Business Consultant Liability Insurance

The business consultant liability insurance that you shouldn’t skip is a general liability policy. Use the table above to see which insurance company offers the best general liability insurance for business consultants.

Firms, holding companies, education institutions, and other high-profile businesses might require a general liability policy before hiring you.

General liability insurance grants protection when third parties hold you liable for bodily injuries or property damage after experiencing an accident at your office. Here are situations where the coverage of this insurance applies:

• Hot coffee was spilled on a client during a meeting

• A client or independent contractor slips and falls while moving around in your office

• Someone gets injured during an office renovation project

Carriers design general liability insurance to cover these expenses when third parties file a claim for bodily injury or property damage against your business consulting office:

• Medical expenses of the claimant

• Refund or reimbursement for the damaged property of the claimant

• Legal costs

• Court judgments

The general liability policy of business consultant insurance bundles is a broad form coverage that contains these automatic add-ons:

• Products and completed operations coverage

• Rented premises liability coverage

• Advertising injury coverage

E&O Insurance for Business Consultants

Use the table above to see which insurance company offers the best errors and omissions insurance for business consultants.

E&O insurance, which you can find in marketing consultant insurance plans, can be included in your tailored insurance package.

You’re partly responsible for any negative outcomes of your advice, strategies, and analysis. And so, clients can file a claim against your services. This is the exposure that E&O insurance for business consultants covers.

In practice, you can use errors and omissions insurance for business consultants when clients file a claim because:

• You failed/forgot to submit an important report

• You gave an inaccurate feedback

• You implemented a strategy poorly

• You breach your contract with clients

• Important documents and electronic data entrusted to you got lost by accident

If you're in a state where business consultants are required to get a license, your professional liability policy can be added with license defense coverage. Professional liability insurance with license defense coverage will take care of legal defense expenses if the licensing authority files a proceeding to terminate or suspend your license.

Cyber Liability Insurance for Business Consultants

A cyber liability policy can help if client information and electronic documents get exposed because your laptop or desktop computer is hacked or breached. The coverage of this insurance applies if you become a victim of malware, ransomware, man-in-the-middle attacks, and other related activities.

You can use cyber liability insurance to take care of these expenses:

• Credit monitoring

• Legal expenses if clients affected by the breach sue you

• Client notification

• Data breach containment

• Data recovery

Commercial Property Insurance for Business Consultants

Use the table above to see which company offers the best commercial property insurance for business consultants.

Commercial property insurance is a coverage for your office. In practice, this insurance will cover:

• A condo office you own, rent, or lease

• The co-working space if you’re operating from one

• A stand-alone office building you own, rent, or lease

• An owned, rented, or leased space you’re using as an office

So, how does commercial property insurance for business consultants work? Commercial property insurance will reimburse the replacement cost or actual cash value of the office if it gets damaged or destroyed by:

• Fire

• Theft

• Vandalism

• Malicious mischief

• Sinkhole collapse

• Lightning

• Weather

• Impact

• Falling objects

• Aircraft

• Vehicle

• Impact

The valuables of your office, such as documents, laptops, cameras, desktop computers, furniture, water dispenser, and bulletin board are also covered by commercial property insurance. Understand that the coverage of this insurance doesn’t apply to the valuables of clients under your care, custody, and control.

Business Owner’s Policy for Business Consultants

Use the table above to see which company offers the best business owner’s policy for business consultants.

The small business consulting insurance for those who can’t spend much on premiums is the business owner’s policy.

A business owner’s policy, also offered in HR consultant insurance bundles, is a two-in-one insurance product. This is made by combining general liability insurance and commercial property insurance.

And so, you can use a business owner’s policy to cover the expenses for liability claims and recover financial losses in case business property gets damaged or destroyed.

Your business owner’s policy might offer optional coverages such as cyber liability, business interruption, errors and omissions, etc. That said, it’s best to examine the quote closely before proceeding with the purchase.

Workers Compensation Insurance for Business Consultants

Workers' compensation insurance is a must for business consultants who work with full-time and part-time employees.

By law, part-time and full-time employees are eligible for adequate benefits and compensation if they sustain a work-related injury or disease.

The job of workers' compensation insurance is to ensure that you don’t lose money when fulfilling such an obligation. Particularly, these are the expenses covered:

• Employee medical treatment

• Hospitalization

• Medication

• Rehabilitation and retraining

• Lost wages

• Funeral expenses and allowance to dependents in case of death

In practice, you can use workers' compensation insurance if an employee slips and falls in the office, gets involved in a car accident while traveling to meet your clients, sustains a musculoskeletal disease, or experiences severe stress, trauma, depression, and PTSD.

The failure to get workers' compensation insurance is punishable by law. Expect authorities to be on your tail if employees aren’t covered by this policy. Again, you only need to cover those working part-time and full-time. Independent contractors, interns, and volunteers are exempted.

Commercial Auto Insurance for Business Consultants

You can use commercial auto insurance as coverage for the owned and leased vehicles that are used by your business consulting office for its day-to-day operations. This policy might even cover the personal cars of employees if they’re used for your business’s ends.

Here’s a quick glimpse of what commercial auto insurance can do for your business:

• Pay the medical treatment of involved third parties if your commercial vehicle caused an accident

• Pay the medical treatment of your commercial vehicle’s driver and passengers if it gets involved in an accident caused by an uninsured/underinsured driver

• Cover the repair or replacement of parts if your commercial vehicle sustains damage from fire, theft, vandalism, weather, and other covered perils

Business Consultant Insurance Cost

The average business consultant insurance cost is $32 per month or $384 per year for a $1 million general liability policy. Factors that affect the cost of premiums are claims history, business history, annual revenue, annual payroll, number of employees, and location. To get a better understanding of your actual rates, take a look at this table that shows the cost of a $1 million general liability policy from insurance companies worth checking out. 

Get the best rates by comparing quotes. Click the “Get Quotes” button on this page to get cheap business consultant insurance quotes from different insurance companies.