“Do I need insurance for my consulting business?” The answer to this is a yes. And regardless if you work as a financial consultant or any other type of business consultant, an appropriate coverage will always be helpful to secure clients and protect your finances.
There are many types of insurance to choose from, depending on the type of consulting service you offer. For example, if you help organizations comply with laws and regulations that protect nature, then you can go for an environmental consultant insurance package.
Nonetheless, generic consultant insurance works best if you provide different types of consulting services. This guide will take you through what policies are included, the cost of premiums, and the best companies to approach for comprehensive consultant insurance coverage.
As highlighted, chances are that you have pondered over whether you need insurance for consulting services. 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.
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. You badly need this commercial insurance for consultants. 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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You also need professional liability insurance. 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 by this type of consulting business insurance:
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 packaged business insurance for consulting companies
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 small business insurance for consultants 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
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.
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 Month||Cost per Year||Best for|
|NEXT||$26||$312||Best overall; Fast professional liability insurance for consultants|
|CoverWallet||$27||$324||Consultant insurance quotes comparison online|
|Tivly||$28||$360||Compare consultant insurance quotes over the phone|
|Thimble||$75||$900||Consultants looking for the minimum professional liability insurance|
|AON||$80||$960||Professional indemnity insurance|
To get a very solid understanding of much you’ll pay for the business insurance for independent consultants and employed consultants, we suggest you compare several quotes. Start by clicking the “Get Quotes” button on this page.
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.
Get all the best quotes from leading providers in a click of a button!
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.
Issues an online proof of insurance instantly
Great customer service and reputation
Outstanding value for money
Get a 10% discount if you bundle professional liability insurance, general liability insurance, and others
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
Cancel a policy anytime
Compare consultant insurance quotes online
Buy a policy online or through the phone
No hidden charges
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
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
Doesn’t issue an online quote
Tivly (formerly 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 Tivly 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
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
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 independent 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
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
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
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
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
Extensive catalog of consulting insurance policies
100+ years of experience
Exemplary customer reviews
Strong standing in significant financial strength metrics
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 consulting firm insurance package's 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
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow