Whether you work as an independent management consultant or you have a consulting firm that employs multiple management consultants, business insurance for management consultants is a must.
Management Consulting Insurance for Independent Contractors
Independent contractors have unique coverage requirements. Because they are not covered under the insurance policy of the company that hires them, they should have their own management consulting insurance that includes a minimum of:
- General liability. This covers lawsuits that claim you caused injury or property damage to a client. If you think you are at a low risk for this (for example, if you don't have an office that clients come to or you don't work primarily with equipment), minimum coverage amounts will suffice.
- Professional liability (Errors & Omissions). This is the type of business insurance for management consultants that should be adequate rather than minimum coverage. General liability protects you from injury and damage lawsuits, whereas professional liability covers defense costs and settlements regarding financial loss to the company you consult that result from errors you make. For example, if a company is not satisfied with the outcome of your recommended practices, or if they claim your professional advice caused them to lose business or money, your professional liability insurance will cover you.
Management Consulting Insurance for Companies
If you have a consulting business that employs a number of management consultants as employees rather than independent contractors, your business insurance for management consultants should include general liability and professional liability as well, but with larger coverage limits (a good starting point would be $1 million for each occurrence/aggregate $2 million).
In addition, your company will need:
- Workers compensation. If one of your employees is injured on the job, workers compensation insurance will cover their medical bills and lost wages.
- Business interruption. If you are unable to operate your business because of a disaster that damages your property, this will cover profits you would have earned.
Finding Business Insurance for Management Consultants
There are plenty of insurance companies that provide specialized policies that include coverage for the unique needs of management consultants. How much coverage you need will depend on the size of your business, the type of consulting you do, and your budget.
Comparison shopping is always a good idea when looking for management consulting insurance and will help you find the best coverage at the most competitive price. The easiest way to do this is through netquote.com. This site features a number of articles on all types of insurance, and allows you to compare multiple quotes for free.
See how much you could save today on your insurance. Get your free business insurance quotes today!