Management Consultant Insurance: Cost & Quotes from $11

Homepage > Business Insurance  >  Management Consultant Insurance: Cost & Quotes from $11

Management consultants help businesses implement the best strategies in ensuring productivity, competency, and efficiency. As a management consultant, consider getting insured to protect yourself and satisfy the demands of clients. Management consultant insurance grants protection against negligence claims, bodily injury and property damage claims, as well as business property damage or loss.

Management Consultant Liability Insurance

Professional indemnity and general liability policies are the two types of management consultant liability insurance. You need to get $1 million-$2 million in coverage of either of this two business insurance.

Professional Indemnity Insurance for Management Consultants

The quotes comparison table above allows you to see which companies offer the best professional indemnity insurance for management consultants. 

You implement strategies, identify the strengths and weaknesses of an organization, do research, and make reports. Your output has a lot of impact on the success of businesses. This is why client’s can hold you responsible if issues occur. 

Professional indemnity insurance, which you can also find in HR consultant insurance bundles, covers claims made against your services. You can avail this as an optional policy or as an add-on to general liability insurance. You can use PI insurance for management consultants if a client files a claim because:

• Your research and report were made using outdated data

• You implemented the wrong management model and this resulted in employee underperformance

• The strategy you crafted contributed to high employee turnover and a low talent retention rate 

You can avail of management consultant professional indemnity insurance as an occurrence or claims-made coverage. By the way, this policy is also called professional liability and errors and omissions insurance. 

General Liability Insurance for Management Consultants

Use the table above to see which insurance company offers the best general liability insurance for management consultants. 

Don’t forget purchasing general liability insurance because professional liability insurance for management consultants doesn’t grant protection if clients and other third parties hold you liable for their bodily injuries or property damage. 

General liability insurance takes care of medical expenses, settlements, attorney fees, and court judgments. Here are some situations where you’ll find this coverage useful:

• The client’s laptop gets fried while plugged in one of your office’s outlet

• An independent contractor experiences a work-related injury while installing a new signage 

• Someone visiting your office slips and falls 

You can also get a general liability policy in business consultant insurance plans. However, the limits of this policy in business and management consultants insurance can be different. The table below differentiates the general liability policy limits of management consultant insurance bundles and business consultant insurance bundles side by side:

Commercial Property Insurance for Management Consultants

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

Legal liabilities aren’t the only exposures you face as a management consultant. Business property damage or destruction will also result in drawbacks. Therefore, commercial property insurance is worth the investment. 

Commercial property insurance takes care of cost if something happens to the office you own, lease, or rent. You can use this insurance to cover a condo office, a private office at home, a stand alone office building, and other spaces where you might be operating as a management consultant. 

Management consultant commercial property insurance will grant coverage if your office is damaged or destroyed by:

• Fire

• Theft

• Vandalism

• Malicious mischief

• Civil commotion

• Lightning

• Volcanic action

• Sinkhole collapse

• Falling objects

• Aircraft

• Impact

• Vehicle

Commercial property insurance comes with contents coverage, and this will reimburse your financial losses if laptops, valuable papers and records, office furniture, bulletin boards, and other precious items get damaged or lost while in the business premises. 

An optional business interruption floater might be offered in your commercial property insurance too. This will take care of operational costs and lost revenues if your management consultancy office needs to close to renovate, relocate, or wait for an economic crisis to pass.

Business Owner’s Policy for Management Consultants 

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

Can’t spend much on premiums? If this is the case, the smartest route is to go for a business owner’s policy. 

A business owner’s policy combines general liability and commercial property insurance. That said, it provides two types of coverage for the price of one. 

Moreover, depending on which insurance company you work with, optional policies might be offered in a business owner’s policy. 

Workers Compensation Insurance for Management Consultants

You’ll work alone from the start. But as your reputation grows and more clients approach, tasks will become so numerous that you’ll need to hire employees to schedule meetings, create reports, and respond to queries. 

Management consultants with one or more full-time and part-time employees need to purchase workers' compensation insurance. 

Workers' compensation insurance helps to cover unexpected expenses when employees sustain a work-related injury or disease. Its coverage usually applies to an employee’s:

• Emergency medical treatment

• Hospitalization

• Medication

• Rehabilitation and retraining

• Lost wages 

• Funeral expenses and allowance to dependents in case of death

Authorities will require you to get workers' compensation insurance and cover full-time and part-time employees accordingly. Non-compliance is punishable by fines and imprisonment. But also remember that there’s no need to get workers comp if your employees are independent contractors, volunteers, or interns. 

Fidelity Bonds for Management Consultants

Clients might leave the management of finances and other business resources to you and your employees. Employees can commit dishonest acts. And so, consider getting fidelity bonds. 

Fidelity bonds, also called employee dishonesty bonds, grant coverage if your employees steal, commit fraud, or do any other dishonest acts to the client’s detriment. In practice, this will reimburse the losses of the client. 

Note that some clients will require you to get fidelity bonds aside from liability coverage. 

Cyber Liability Insurance for Management Consultants

Don’t forget about cyber liability insurance if you collect client information and store it in the office database. 

Cyber liability insurance takes effect if malware, ransomware, data breach, cybersecurity error, and other related issues result in the loss of electronic documents and leakage of sensitive client information such as credit card numbers, phone numbers, and addresses. 

These are the expenses that you can cover without incurring financial losses by purchasing cyber liability insurance:

• Client notification

• Professional services for fixing the breach, malware, or ransomware

• Professional services for recovering lost electronic documents

• Legal expenses if clients sue you

• Credit and fraud monitoring

Commercial Auto Insurance for Management Consultants

Does your office have a vehicle that employees can use for business purposes? Do employees use their vehicles to meet clients? If your answer is yes for either of these questions, consider purchasing commercial auto insurance. Commercial auto insurance will:

• Cover the medical treatment of third parties that the covered commercial vehicle injured in an accident

• Cover the medical treatment of the covered commercial vehicle’s passengers if they get involved in an accident caused by an uninsured/underinsured driver

• Cover the repair of the covered commercial vehicle if it gets damaged because of fire, theft, vandalism, and other covered perils 

• Cover the medical treatment of the driver and passengers whether or not your commercial vehicle caused the accident

Management Consultant Insurance Cost 

The average management consultant insurance cost is $32 per month or $384 per year for general liability insurance with a policy limit of $1 million per occurrence. Factors that affect the cost of premiums are claims history, business history, revenue, location, and the number of employees. 

In addition, take a look at this table that shows the rates of the $1 million general liability insurance from the best management consultant insurance companies:

Consider comparing quotes to get a better estimate of your rates. Start by clicking the “Get Quotes” button on this page. 

How to Get Management Consultant Insurance?

Before highlighting the best management consultant insurance companies in the market today, it would be best to point out how you would get management consultant insurance. 

Right out of the gate, note that getting insurance coverage and fidelity bonds as a management consultant is relatively easy. All that you are required to have is basic facts about your company at hand, including your revenue and number of employees. 

You can then proceed online and conduct an online search with the hope of finding cheap management consultant insurance quotes. You can opt to conduct your search through an intermediary that'll shop around and present you with the available options. In this case, you will need to complete a free online application on the intermediary's website. 

You then will be able to compare insurance quotes and choose the policy that best suits your business. You then will proceed to pay for your policy and download a certificate that will work as proof of insurance.