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Consultant Insurance: Liability, Cost & Quotes From $7

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As a consultant, you likely have a lot on your plate. You have to ensure that your customer's needs are met, and in some instances, you've got to manage the day-to-day administrative tasks required in the business. The result is a fill-up of your days which could result in you overlooking some important details, particularly consultant insurance.

With the right consultant insurance coverage, you are assured that your investment in the consulting company and your personal property are protected. Regardless of the state you live in, the clients you serve, and the type of consulting you need, you will need commercial insurance for consultants.

For instance, most states require that you carry workers' compensation, unemployment, and disability insurance if you have employees. Even as an independent consultant, you will still require independent consultant insurance. Overall, to run a successful consultancy, you are going to need consulting business insurance, with the greatest benefit being the peace of mind it renders you.

Suppose you are running a small consultancy. Chances are you have pondered whether you need insurance for consulting services. The simple answer to whether you need small business insurance for consultants is yes, seeing as it frees you up to concentrate on your work.

As you think of the different business insurance for consulting companies, it would be best to complete a risk assessment. Check with the National Federation of Independent Businesses for additional guidelines about the exposures best covered with business insurance for independent consultants.

The Small Business Association is also a great resource for guidelines on consulting firm insurance policies. Finally, consider simply searching "insurance for my consulting business," as the search result would yield all the state and federal insurance requirements.

Overall, seeing as a lawsuit, even when won, can be financially devastating to your consultancy business, it would be best that you commence your road towards a successful consultancy by investing in consulting company insurance.


Also read:

Do Consultants Needs Insurance? 

As highlighted, chances are that you have pondered over whether, as a consultant, you need insurance. Further, chances are you have already consulted on insurance needed for consulting business. The simple answer is that you need insurance, seeing as financial tassels can take a significant toll on your business's finances. 

Note, however, that simply purchasing consultant insurance is not sufficient. You want to start by first determining the level of coverage you need. You'll then proceed to balance the deductible levels and the premium payments you are most comfortable with. All of these will determine the type of consultant business insurance you get. 


Consultant Liability Insurance 

Consider a situation whereby a client sues you due to the services provided. You risk defamation and, even worse, loss of business. Liability insurance for consulting business steps in helping you deal with the legal matter at hand. The policy covers the legal fees arising from the case, thus ensuring you don't have to pay for any of it out of pocket. 

Most insurance providers will sell this as general liability insurance for consultants which will take care of any financial ramifications brought on when a third party files a claim against your business. 

What if you are a consultant operating as a sole proprietor? Without having independent consultant liability insurance, you are personally responsible for any damages as reported by a third-party complainant. Given the fact that you are primarily responsible, you want to get comprehensive general liability insurance for independent consultants simply to protect yourself. 

For most providers, they will include public liability insurance for consultants as part of their general liability policy. This means that if a member of the public were to file a lawsuit against you, you would have the policy to cover any resulting costs. 

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Professional Liability Insurance for Consultants 

Professional liability coverage for consultants is often referred to as errors and omissions insurance for consultants. E&O insurance for consultants, in short, is a must-have as you are likely going to end up being sued for negligence or mistakes that cost your clients money. 

The unfortunate thing is that you might end up being sued for negligence even when you didn't necessarily make a mistake. It would be best that you read your policy's terms and conditions to get the full details of your policy. In most instances, the following will not be covered. 

  • Fines and penalties 

  • Circumstances that existed prior to the date when you signed the policy 

  • Injury or loss in a joint product 

 

An additional means through which you can protect your business is through professional indemnity insurance. Also known as PI cover for consultants, this policy covers you and your business in the event that one of your customers claims that your service or advice is inadequate. 

Further, the policy will cover you in the event that your advice as a consultant resulted in financial loss for the client. It covers the legal fees and any other expenses that are incurred as a result of your defense. Additionally, the policy covers all damages or costs that will be awarded to the client. 

Note that the Errors and Omissions policy does not cover damages to third parties from cybersecurity breaches. If you have access to your client's electronic data, both personal and financial, you want to talk to your insurer of choice to discuss whether they can include cyber liability as part of your professional liability insurance for consultants.

 

Workers Compensation Insurance for Consultants  

Granted, consulting is relatively low-risk. Still, your employees are susceptible to a number of accidents that could have serious legal and financial ramifications. That's where workers' compensation insurance for consultants comes in. 

This insurance policy covers the medical costs and lost wages for work-related injuries and illnesses. Note that most states will actually mandate that you provide proof of insurance before they can give you a license of operations. Overall, workers' compensation policies provide coverage when it comes to:

  • State law compliance

  • Employee injury lawsuits 

  • Employee work-related injury expenses 

 

Consultant Insurance for A Day  

If you need to protect your practice against claims of negligence, errors, or omissions for a day, you are going to need consultant insurance for one day. This one day consultant insurance comes in handy when you just landed a short-term contract and you need protection for the said contract. 

Moreover, if you are between policies, the daily consultant insurance will be sufficient, giving you enough coverage before you decide to lock in on a policy. 

Further, having the one day consultant liability insurance gives you the flexibility that is otherwise unrivaled. You can get instant coverage in just a few clicks which will be sufficient to protect you.

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Consultant Insurance Cost

Several factors contribute to consulting business insurance cost, including the size of your consultancy business, the risks therein, and equipment value. The best advice would be to consult different insurance providers to get a pool of consultant liability insurance costs. 

When it comes to the cost of general liability insurance for consultants, you will pay $34 per month or $408 per year for a $1 million coverage. This policy will provide protection for third-party bodily injury and property damage. Advertising injuries are also covered within this policy. 

When it comes to the cost of workers' compensation policies, the amount you pay for the coverage will be based on every $100 of your business's payroll. The premiums will be determined by the particular consultation service your employees offer.  On average, premiums will be about $49 per month and $500 per year.  In some states, the local government will set its own requirements for workers' compensation. Note that as an independent consultant, you will not be required to purchase a workers' compensation policy

To further get an idea of consultant insurance cost, here’s a table showing the rates of the best companies:


Cost per MonthCost per YearBest for
NEXT$26$312Best overall; Fast professional liability insurance for consultants
CoverWallet$27$324Consultant insurance quotes comparison online
CommercialInsurance.Net$28$360Compare consultant insurance quotes over the phone
Hiscox$48.73$584.76Independent consultants
Thimble$75$900Consultants looking for the minimum professional liability insurance
AON$80$960Professional indemnity insurance
Nationwide$90$1,080Customer service

 

To get a very solid understanding of much you’ll pay, we suggest you compare quotes. Start by clicking the “Get Quotes” button on this page. 


Professional Liability Insurance Cost for Consultants  

When it comes to errors and omissions insurance cost for consultants, the median premium will be less than $55 per month or $650 per year. This cost of E&O insurance for consultants will cover a $1 million per occurrence limit and a $1 million aggregate limit. Note that higher limits costs will correspond with better coverage. 

Compare Cheap Consultant Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Professional Liability Insurance for Consultants  

As highlighted, consultant insurance is not mandated by law. Still, working with the best insurance for consultants will ensure that your business is sufficiently covered in the event that you are subjected to lawsuits. 

Here are the best consultant insurance companies. Read to know their pros, cons, and rate for a $1 million professional liability insurance. 

 

NEXT Consulting Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you bundle professional liability insurance, general liability insurance, and others 

Cons

  • Couldn’t find any

NEXT professional liability insurance for consultants is offered as a coverage in general liability insurance. Your general liability and professional liability insurance from NEXT will have a $1 million-$2 million per occurrence limit. 

Best for: Best overall; Fast professional liability insurance for consultants

Average cost: $26 per month

Our rating: 10/10


CoverWallet Consulting Insurance

Pros

  • Cancel a policy anytime

  • Compare consultant insurance quotes online

  • Buy a policy online or through the phone

  • No hidden charges 

 

Cons

  • Not an insurance company but an insurance broker

CoverWallet’s professional liability insurance for consultants has a $1 million-$2 million per occurrence limit. It can be bundled with general liability insurance for better protection. 

Use CoverWallet’s online quotes comparison platform to find the best deals. Provide basic business information and take a look at the offers of companies providing the most comprehensive consultant insurance policies. 

Best for: Consultant insurance quotes comparison online 

Average cost: $27 per month 

Our rating: 10/10


CommercialInsurance.Net Consulting Insurance

Pros

  • Compare consultant insurance quotes over the phone

  • Build your consultant insurance from the ground up

  • Responsive customer service

  • Takes you to partners if it can’t provide coverage

Cons

  • Doesn’t issue an online quote 

CommercialInsurance.Net allows consultants to build their insurance program from the ground up. With this company, you'll get covered by professional liability insurance that may be combined with commercial property, general liability, and workers compensation insurance as add-ons. 

To start, we suggest you call CommercialInsurance.Net now to compare consultant insurance quotes over the phone. 

Best for: Comparing consultant insurance quotes over the phone

Average cost: $28 per month 

Our rating: 10/10


Thimble Consulting Insurance 

Pros

  • Quickly shows the estimate of your premiums

  • File a claim online

  • Cancel a policy and get a refund

  • Unlimited number of additional insureds

  • ACORD 25 certificate of insurance 

Cons

  • You can’t reach customer service by calling 

Similar to NEXT, Thimble’s professional liability insurance for consultants is offered as a coverage in general liability insurance. It has a $1 million per occurrence limit with a $250 minimum deductible. Note that Thimble offers a short-term consultant insurance offering a general liability policy that lasts for hours, days, weeks, or months. 

Best for: Consultants looking for the minimum professional liability insurance

Average cost: $75 per month

Our rating: 9/10


Hiscox Consulting Insurance 

Pros

  • 14-day money-back guarantee

  • Quotes are available online within a few seconds of the request 

  • You can purchase a consulting insurance policy online 

  • Discounts of up to 5% are available for policyholders who bundle two or more policies together 

  • Knowledgeable consultant insurance team 

  • Underwriting expertise

Cons

  • Policyholders might not get comprehensive consulting insurance from Hiscox

  • BOPs only available to companies with less than ten employees

  • Consulting insurance cover not offered to consultancies in Alaska 

Hiscox is an international insurance group with an extensive product catalog. Headquartered in Bermuda, Hiscox has over 3000 staff across 14 countries operating within 35 offices. For consultancy businesses with a global reach, their consultancy insurance policies will be underwritten by Hiscox London. 

Started in 1901, Hiscox is best known for its employers' liability insurance as well as professional indemnity insurance. As of today, Hiscox insurers over 13,500 management consultants providing them with professional indemnity insurance that covers all risks that they could possibly face. 

A neat advantage of purchasing consultant insurance from Hiscox is that you can get cyber and data liability coverage as part of your policy. Hiscox's CyberClear365 provides a simple and unambiguous policy wording that consultants will be easy enough to understand.

Best for: Independent consultants 

Average cost: $48.73 per month 

Our rating: 9/10

 

AON Consulting Insurance  

Pros

  • A team of experienced consultants and insurance specialists is available to advice at every turn

  • AON makes claims and advocates on your behalf 

  • Quotes are available online or over the phone 

  • Policyholders can adjust their policies at any time 

  • Easy renewal management

  • Online requests for certificates of insurance 

Cons

  • Customer support is often unresponsive 

  • There have been significant data protection concerns 

  • Less than an exemplary user experience 

 

AON is one of the largest insurance brokerage and consulting companies in the world. With over 120 offices worldwide, AON offers consultancies looking for global insurance coverage. The insurer offers risk advisory, risk transfers, and structured solutions that will help your consultancy better identify, quantify and manage risk exposure. 

The professional indemnity policy from AON stands out amongst its competitors as it protects the business from both financial and reputational damage. It protects you from the duty of care even in situations where you have dispensed your consultancy services for free. You must consider getting the PI policy from AON, seeing as most professional bodies mandate said policy. Given that AON doesn't specialize in this type of insurance, it is best to get in contact with the insurer for a custom quote. 

Best for: Professional indemnity insurance 

Average cost: $80 per month 

Our rating: 9/10

 

Nationwide Consulting Insurance

Pros

  • Extensive catalog of consulting insurance policies 

  • 100+ years of experience 

  • Live representatives 

  • Exemplary customer reviews 

  • Strong standing in significant financial strength metrics 

Cons

  • Costlier premiums than other insurance providers 

  • Poor claims handling 

  • Stringent consulting insurance limitations in Alaska, Florida, Louisiana, Massachusetts, New Jersey, and New Mexico 

  • Policyholders cannot get online quote estimates. Instead, they are required to fill out a request form on Nationwide's website and wait at least 14 business days 

Nationwide Mutual Group is one of the largest insurers in the United States, with an extensive catalog of insurance products. What stands out the most about the provider's consultant insurance is how willing they are to work with the consultancy to create a custom policy specifically suited for the business. You can customize your professional liability, worker's compensation, and commercial umbrella insurance. 

It is prudent to mention that given said customization, Nationwide is not forthcoming with premium information. Instead, you are required to get in contact with Nationwide to get a custom quote. Unfortunately, you might have to wait for about 14 business days for a response to your quote request. 

Best for: Customer service

Average cost: $90 per month 

Our rating: 9/10


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