If you own a consulting business you probably know of all the most common issues and problems when it comes to your insurance options.
No matter your specialty, all business consultants share a range of risks along with the many rewards. This is why you need to be protected and covered with the right type of insurance policy that will work for you and which is catered per your business size, type and field. Keep on reading and apply these crucial rules!
4 Tips for choosing Insurance for your consulting business
1. Your must-haves
Different cities, states, and countries will require different kinds of documents for your verification process. Smaller businesses will need compensation, unemployment, and disability insurance. Bigger businesses will need a general liability policy to protect against financial loss resulting from bodily injury or property damage.
2. A risk assessment
Once you’ve determined any business insurance policies that are required, it is time to think about any risk assessments. People usually tend to go for professional liability insurance and cyber liability. Consult with a lawyer to get a fair look into your situation and to have them explain to you what you might need.
3. The coverage that you need
Remember that the reason you’re purchasing business insurance is to protect yourself or your company from any big lawsuits and losses. Be realistic and honest with your company. Go over all aspects to become aware of your needs. Consider the size of your business, your number of employees, your goals, as well as how high or low-risk the job may be.
4. Review coverage annually
Insurance rates can vary over time and as a result of changing business circumstances. If you grow as a company and you expand to other cities, you will need more coverage. Consult with your team, HR department, as well as lawyers, to understand what your options are. Review and talk thoroughly to see if you need to upgrade.
What insurance to go for? Top 6 options that you should consider and know about
1. General liability
This is the most common go-to option since it covers a lot and it doesn’t have to be too pricey. It is used for:
- Client bodily injury
- Property damage
- Advertising injuries
General liability insurance will pay for your legal defense. A Commercial General Liability policy will respond when a business or its owner is sued because someone was injured or somebody’s property was damaged. It doesn’t matter if the claim is true, the policy will cover legal expenses and any award granted. It is used worldwide and will come in handy for your business.
2. Professional liability
Your business will be protected against any type of alleged financial harm moves. If you are a consulting firm you should know that you are at greater risk of being accused of a costly mistake. You will prefer this insurance since it helps and covers:
- Mistakes that happen at work
- Missed deadlines
- Any form of claims of negligence
If your business gets sued by a client, this coverage will pay for your lawyer fees, court costs, and any settlements or judgments.
3. Business owner’s policy
With it, you will be protected against third-party liability lawsuits. You will have your electronics insured, along with the equipment, storefronts, and other workplace-related gadgets. You as a company, your chain, and the look that you present through your ads or marketing strategies will be protected. If you are a business that makes less than $1 million in annual revenue, this will suit you. It is also a lot more affordable option than general liability and commercial property insurance.
4. Workers’ compensation
This type will cover your medical and much-needed expenses that most people tend to ask for within a company and when hiring. Every employee wants to be in safe hands and doesn’t want to take a risk with any type of work-related illness or injury. You as a company should cover the employee’s lost wages for the time they are unable to work, as well as the cost of their medical bills, like X-rays and physical therapy. The busier your job is and the more workers you have, the better the overall offer by an insurance company for all of them.
5. Cyber liability
Every consulting company has to be aware and on the lookout for cyber issues. Living in this modern world, we tend to face a lot of these. You should protect your data breaches and other cyber incidents. No one should be worried about their phones, computers, or cards being monitored. You will be covered in all the right ways, such as with your attorney fees and settlements. A proper IT system and a team of experts who know how to keep your data intact are major must-do for big and small companies.
6. Fidelity bonds
Have you ever heard of fidelity bonds before? If not, this is an amazing protection offer that helps with theft, fraud, or unlawful data access. Try and protect yourself from anyone who steals or seems fishy within your surrounding. Third-party fidelity bonds protect your clients if one of your employees commits a crime against their business. It will cover the fallout related to different kinds of situations on both ends (customer and owner), while also protecting the work/workers within this field.
Get the right insurance option for your company
If you wish to feel safe and protected within your company, make sure that you go to ApolloCover. They will help you understand why you as a consultant will need the general liability, professional liability, and contents insurance for your company. All three of these are the most popular, common, and must-have policies. Get a free quote and get the right insurance in just three quick and easy steps. Simply find the coverage you need and choose the payment plan for it. Get your policy documents in an email and start working safely and securely, all in one place.