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.
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.
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.
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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 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.
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.
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.
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:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $15.50 | $186 | Best overall; Fastest general liability insurance for financial consultants |
| CoverWallet | $18.30 | $219.60 | Financial consultant insurance online quotes comparison |
| Tivly | $20 | $240 | Comparing financial consultant insurance quotes over the phone |
| Hiscox | $22.16 | $265.92 | Independent financial consultants |
| Nationwide | $25 | $300 | Customer service |
Get the best protection by comparing quotes. Start by clicking the “Get Quotes” button on this page.
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.
Get all the best quotes from leading providers in a click of a button!
A few providers offer financial consultant insurance products in the market today. Here are the best financial consultant insurance companies. Read to know their pros, cons, and rate for a $1 million general liability insurance.
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 buy two or more financial consultant policies
Couldn’t find any
Founded in 2016, NEXT is relatively the new kid on the block when it comes to offering specialty insurance products, and in this case, financial consultant insurance. If you are a small financial consultancy owner, you will find their offering quite attractive. Their financial consultant insurance is not only easy to procure, but you can handle its entire management online.
NEXT financial consultant insurance policy includes a BOP, general liability insurance, commercial property insurance, business income insurance, workers' compensation insurance, and professional liability insurance.
NEXT’s general liability insurance for financial consultants is $25.50 per month or $294 per year.
Best for: Best overall; Fastest general liability insurance for financial consultants
Average cost: $15.50 per month
Our rating: 10/10
Compare financial consultant insurance quotes online
Stable rates
Call and cancel your coverage anytime
You can also call a representative to get covered
Pay premiums and manage policies online via the MyCoverWallet app
An insurance broker, not an insurance company
CoverWallet’s financial consultant insurance offers general liability, commercial property, workers' compensation, and professional liability insurance.
Your general liability insurance from this company has a $1 million per occurrence limit with a $2 million aggregate. A $1 million rented premises liability coverage and $10,000 medical payments coverage are added to its terms.
CoveWallet’s professional liability insurance for financial consultants has a $1 million per occurrence and aggregate limit. You can add additional insureds for free.
And then, this company’s commercial property insurance for financial consultants offers a $50,000 building and contents coverage. A $1,000 deductible applies. Note that equipment breakdown is also covered.
Get your policy from CoverWallet in an instant. All you have to do is use this company’s online quotes comparison platform, provide your details, and it will issue quotes you can buy online.
Best for: Financial consultant insurance online quotes comparison
Average cost: $18.30 per month
Our rating: 10/10
14-day money-back guarantee
Quotes are processed online in a few seconds of the requests
Discounts of up to 5% for bundling two or more policies together
In-house underwriting experts
Financial consultants might not get comprehensive consulting insurance from Hiscox
BOPs are only offered to financial consultants with less than ten employees
If you are an independent financial consultant looking for an insurer with an international reach, you must consider Hiscox. The insurer operates 35 offices across 14 countries. In the United States, it offers financial consultant insurance in 50 states, including Washington, DC.
Your business will be joining the over 13,500 other consultants already having their policies underwritten by Hiscox. If you are particularly concerned about cyber threats, Hiscox offers CyberClear365, a specialty product that will cater to all costs arising from a cyber event.
Most of the Hiscox policies offered to financial consultants have a $1 million limit which translates to sufficient coverage even in the event of unprecedented events with expensive outcomes. This is available at $29.16 per month and $349.92 annually.
Best for: Independent financial consultants
Average cost: $22.16 per month
Our rating: 9/10
100+ years of experience
Live representatives
Exemplary customer reviews
Strong financial standing with competitive financial strength metrics
Premiums are costlier than other insurance providers offering the same product
Poor claims handling
Financial consulting insurance limitations in Alaska, Florida, Louisiana, Massachusetts, New Jersey, and New Mexico
No online quote estimates provided
Nationwide Mutual Group is undoubtedly one of the largest insurers in the United States. Their financial consultant insurance stands out the most as they are willing to create custom policies, with the main focus being your specific business needs. As a policyholder, you can customize your professional liability, workers' compensation, and commercial umbrella policies.
Nationwide will charge you $90 per month and $1,080 annually for their financial consultant insurance.
Best for: Customer service
Average cost: $25 per month
Our rating: 9/10
Prospective policyholders can compare financial consultant insurance quotes over the phone
Policyholders can customize your financial consultant insurance policies from the ground up
Responsive customer service
The insurer is open to working with other providers to supplement some of where their policies are lacking
You need to call to get a quote
Tivly (formerly CommercialInsurance.NET) allows customers to build their financial consultant insurance policies from the ground up. This level of customization means that you can ensure that the policy you purchase fully meets your business needs. What's more, you are assured that you only pay for the policies you use and nothing more.
Call Tivly now to compare financial consultant insurance quotes over the phone and get covered.
Best for: Comparing financial consultant insurance quotes over the phone
Average cost: $20 per month
Our rating: 8/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
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
1 / 5
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.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
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!
Not all those who wander are lost.
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