Small Business Insurance Policies for Consultants
Just as no single business maneuver can make a company successful, no single insurance policy is sufficient to protect a business from every type of risk it faces. Below are some of the policies that can help independent business consultants manage the risks they're most likely to encounter.
- General Liability Insurance: This is the foundational coverage for businesses in nearly every industry. It covers third-party injuries and damage to third-party property that happen in your office space (e.g., a client slips and breaks an arm while meeting in your office). It also covers a variety of incidental events, like an ambulance ride for someone who gets hurt while at your office.
- The Business Owner's Policy: This is a bundled package that includes General Liability Insurance and Property Insurance. It's designed exclusively for small businesses and can be useful if you don't have much business property. Depending on your needs, you may also be able to add other types of coverage to your BOP, including Cyber Liability and Hired and Non-Owned Auto Insurance. Like bundled cable and Internet packages, BOPs offer a slight discount on the policies they include, compared with purchasing each policy separately.
- Property Insurance: If you have limited commercial property, there's a good chance you can bundle your Commercial Property coverage with your GL in a BOP. Your agent can help you figure out your specific Property needs.
- Professional Liability Insurance: Also called Errors and Omissions Insurance, this coverage protects you when a client claims that your professional work caused them a financial loss. For example, if a marketing plan you outlined didn't bring in the revenue you claimed it would, your client might sue you for breach of contract. In that case, you could make a claim on your Errors and Omissions policy, which would cover the court costs and any settlement or judgment you're found liable for paying.
- Cyber Liability Insurance: If you handle or store customer data or work with clients in the healthcare industry (which means you may be required to meet HIPAA data security guidelines), Cyber Liability Insurance can be especially handy. Regardless of what specific work you do, though, Cyber is an important coverage in the digital age because it pays for the costs associated with data breaches to your network. Even better? You can often bundle it with your BOP.
- Umbrella Liability Insurance: This policy offers an extra coverage cushion to certain underlying policies (including, possibly, General Liability and Hired and Non-Owned Auto). In the event that your business is facing a lawsuit whose costs exceed the limit of one of your underlying policies, your Umbrella policy can cover the difference. Without Umbrella coverage, you'd be responsible for covering the excess from your personal funds.
- Commercial Auto Insurance: If you drive a lot to meet with clients, you may benefit from Commercial Auto Insurance. Why? Because many personal auto policies don't cover incidents that happen while the car is being used for business purposes. Your agent can help you determine which kind of auto insurance makes the most sense for the business driving you do.
- Workers' Compensation Insurance: If you have employees, you're required to carry Workers' Compensation Insurance in most states (Texas is the exception). This coverage pays for injuries and illnesses that happen to employees on the job. If your business consists of just you, though, you may not need to carry this policy.
Talk with an Insurance Agent to Choose the Policies for Your Business
No two businesses are alike, and that means no single insurance plan is right for every business consultant. To find out which policies can help you manage the risks that threaten your business, talk with an insureon agent who specializes in covering business consultants. You can start the process by contacting us or filling out an insurance application.