When clients hire you, they want to know that you have the necessary experience to help them achieve their goals. That means they may ask you to provide examples of your work and references from clients. But they might also ask for proof of insurance. In fact, many clients require insurance in their contracts. Let's see why and what types of insurance you may need if you want to land your dream clients.
Insurance Shows You're Financially Responsible
Hiring a management consultant is a major investment for many companies. Before they sign on the dotted line, business owners want to know that investment is protected. Your consultant insurance tells them you can pay if your work causes them a financial loss.
Professional Liability Insurance is a good example of a policy that assures clients you can make amends if you fall short in your services. It covers lawsuits if a client claims you…
- Missed a deadline.
- Were negligent.
- Made a mistake.
Insurance isn't the only way you can bring in new business. See other steps you can take in "How Your Startup Consulting Business Can Land More Clients This Year."
Insurance Shows that Your Business Is Reputable
Business owners often see your coverage as a sign that your business is stable and growing. Some might also believe it points to experience with big clients. Perhaps most importantly, many business owners think having coverage shows that you understand the role insurance plays in the professional world.
For example, a General Liability Insurance policy sends a signal that you're aware that liability issues can come up in business relationships. Plus, it shows you're prepared to handle the cost of a lawsuits arising from things like…
- Third-party bodily injuries.
- Third-party property damage.
- Advertising injuries.
Management consultant insurance gives clients the peace of mind that you are a reputable business owner and not some fly-by-night operation.
Insurance Shows that You Are Looking Out for Your Clients' Best Interests
Clients trust you with their businesses. Adequate insurance is one way to show them that you're prepared to live up to that responsibility.
Let's say you frequently go to your client's office. You handle their property sometimes while making suggestions on how they could streamline operations. If you have General Liability Insurance, it shows you know there's always a chance you could accidentally damage their property during the course of your work, and you're prepared to pay for repairs or replacements if that happens.
It's one more way to prove to clients that they can trust you with their affairs. For more on that topic, check out "5 Unexpected Times Your Consultant Insurance Comes in Handy."
Worth noting: It's not just clients who may request proof of insurance. A commercial landlord may require that you carry General Liability Insurance and Commercial Property Insurance. If so, you may want to look into a Business Owner's Policy, which combines the two, often at a lower rate than if you purchased the policies separately.
To learn how to get the right insurance, read our article "7 Things to Know before Buying Insurance for Your Marketing or Management Consulting Business."