Financial Consultant Insurance: Cost & Quotes From $11/month

Running a business doesn't only require the successful management of resources and human resources. One also needs to look at how a business is doing in terms of how the money flows.

And so, business owners don't only rely on management consultants and human resources consultants but also financial consultants.

As a financial consultant, you need your own insurance just like how business consultants have their own business consultant insurance package.

Financial consultant insurance offers the best protection. Read this guide to know the cost of premiums, what policies are included, and which companies to work with.

Financial Consultant Liability Insurance

Let's examine some real-life situations where financial consultant liability insurance cover comes into play.

What if a client stops by your office for a meeting, trips, falls over a garbage can, and breaks their wrist? Further, consider a situation where an employee divulges the confidential information of a client to a third party. Finally, consider what can happen if another financial consultant cites slander, libel, or copyright infringement against you.

Those stated above are the perils that general liability insurance for financial consultants. Overall, general liability insurance is best for slip and fall accidents, damaged customer property and libel, and other advertising injuries. Note that most insurers will provide you with the option to bundle the general liability insurance with property insurance in a BOP which ensures extra savings on the policyholder's part.

Errors And Omissions Insurance for Financial Consultants

Other than general liability insurance, you want to invest in professional liability insurance for financial consultants. Also referred to as errors and omissions (E&O) insurance, this policy covers negligence, malpractice, and misrepresentation claims. Additionally, the policy will cover a breach of fiduciary duty, a lack of regulatory compliance, and all legal costs that arise from the lawsuit.

It is prudent to mention that with some policies, discretionary advice will likely be excluded. Most policyholders are surprised by this exclusion. As such, it would be best that you extensively review the fine print to decipher all the aspects of your professional liability insurance policy.

Overall, the E&O policy covers all legal expenses related to work performance. It is best for financial advice that causes a loss, accusations of negligence, and calculation errors that result in financial loss.

Commercial Property Insurance for Financial Consultants

Other than general liability insurance and professional liability cover, you ought to invest in commercial property insurance for financial consultants. This policy covers the physical grounds, the structure of the building, and the contents of the property. That means that the office that's essentially your physical address is protected if an unexpected occurrence including fires, extreme weather conditions, or theft, occurs.

Further, the policy protects your computers and any other equipment found within your office. The policy will pay for replacements and repairs, thus ensuring that you are back to business as fast as possible. This means that your business income is protected, and you also don't have to pay out of pocket for any of the damages.

Workers Compensation Insurance for Financial Consultants

Workers' compensation insurance is an additional policy you must be keen to get. Right out of the gate, it is essential to note that most states require that you present proof of workers' compensation insurance before you are awarded a license to operate within said state.

As such, it would be best that you work in liaison with state authorities so that you end up with a sufficient workers' compensation policy. The latter protects the consultancy from having to reach work injury costs that health insurance for financial consultants. It is best for employee medical expenses, disability benefits, lost wages, and more.

Cyber Liability Insurance for Financial Consultants

As a financial consultant, you will end up in charge of sensitive client information, which threat actors are keen to get their hands on. Further, as an SME, you are an easy target for cybercriminals who might want to use your IT infrastructure as a gateway into your client's data.

As such, you want to invest in both first-party and third-party cyber liability insurance for financial consultants. Comprehensively, this type of policy covers data breach lawsuits, customer notification expenses, and fraud monitoring costs. You want to work with your insurer of choice to include within your cyber liability policy the specific cyber coverage needs that your business might have.

Fidelity Bonds for Financial Consultants

Finally, as you are working directly with your clients, you want to invest in fidelity bonds. Suppose one of your employees illegally takes possession of a client's item. Further, what if they illegally access information in what could best be described as a violation of privacy?

The fidelity bonds for financial consultantsstep in to compensate for employee theft. Also referred to as employee dishonesty bonds, this policy is best for employee threat and fraud. Note that most clients will go as far as stipulating it as a requirement before you are awarded a contract.

Financial Consultant Insurance Cost 

Several factors determine the price of your financial consultant insurance policy. These include:

• Location

• Deductible 

• Number of employees 

• Per-occurrence limit

• General aggregate limit 

On average, financial consultants pay $27.49 per month or $329.88 per year for general liability insurance. This policy will have a limit of $1 million per occurrence with a $500 deductible. 

To gain further insight into the financial consultant insurance cost, here's a table detailing the rates from the best financial consultant insurance companies:

Get the best protection by comparing quotes. Start by clicking the “Get Quotes” button on this page. 

Cost Of Other Insurance for Financial Consultants

The cost of E&O insurance is $42.34 per month or $508.08 per year.  This has a limit of $1 million per occurrence, with policy deductibles being $500. 

A cyber liability insurance policy costs financial consultants $110.21 per month or $1,322.52 per year. 

Further, the cost of workers' compensation insurance for financial consultants is $45.83 per month or $549.96 per year.