Consulting Services Business Insurance: Business Owner's Policy Coverage
As a consultant, you already know that risk management is an essential component of any well-run business. With a comprehensive business insurance plan in force, you allow your business the freedom and security it needs to grow and serve more clients. As you shop around for a policy that meets the unique needs of your business, consider these risks and claims a Business Owner's Policy covers for a bargain price.
As a professional who relies on computer and media equipment to conduct business, you don't have time to spare when a catastrophe destroys your business essentials. When disaster strikes, your BOP compensates your business so you can quickly replace the equipment you need to serve your clients — from tablets and computers to your office space and furniture. Generally, your policy will cover the loss or damage of your commercial property should a fire, tornado, or theft occur. Your coverage can also protect property that is in your custody or care.
Most Property Insurance policies will come with the option of insuring your assets at their current or replacement value. Opting to insure items at their current value may mean a smaller premium, but you may find you do not have the coverage you need to buy new items in the event of a claim. Insuring your equipment and commercial property at the replacement value will increase the rate of your premium, but this option also allows you to replace your property with new gear.
For consultants who rent office space, you'll be happy to know the Property Insurance portion of your BOP can meet the coverage requirements of your lease. That way, if an unexpected event occurs, you have the funds to repair your business space and quickly get back to serving your clients.
General Liability Claims
If your office is open to clients and visitors, the General Liability Insurance provided by your BOP can offer valuable protection against liability lawsuits should a third party sustain an injury on your premises. For example, if a visitor trips over a step in your office and hits their head, they could sue your business for medical expenses. If they do, your General Liability coverage kicks in to cover the cost of your legal defense, settlements or judgments, medical expenses, and more. This coverage also protects your business it is responsible for damage to someone else's property.
Additionally, a Business Owner's Policy can include coverage for completed operations liability, contract liability, and advertising / personal injury liability (e.g., libel, slander, or copyright infringement). However, your BOP does not protect your business against claims of professional negligence or errors. For that protection, you'll want to consider purchasing a Professional Liability (Errors and Omissions) policy.
Business Interruption Insurance for Independent Consultants
Under the Property Insurance portion of your Business Owner's Policy, you can include business interruption insurance. Depending on your policy, this coverage could compensate your business for up to 12 months of income you would have earned had your company not been closed due to lost equipment, property repairs, or the need for you to appear in court. This extra measure ensures you will have the means to pay the overhead, utilities, and payroll while your firm gets back on its feet. For more details about business interruption coverage, be sure to ask your insureon agent.