7 Scenarios Where Consultant Insurance Could Be Your Best Friend

Consultant Insurance

As a consultant, regardless of what your specialty may be, you could be exposed to liability in a number of ways. Having an insurance plan that is specifically geared towards your consultancy practice simply makes sense. A consultant insurance policy package can be tailored to protect you against third-party damages, cybercrime, property loss, as well as against any liability costs associated with alleged negligence, errors, or omissions.

1. A Client Is Unhappy With Your Work

The more clients you have, the more likely it is that one or more of them will be dissatisfied with a service that you’ve provided. A client can allege misconduct, negligence, or claim that they’ve suffered a financial loss because of you. This is where Professional Liability Insurance comes in. Sometimes referred to as Errors and Omissions Insurance, this will cover any lawsuit expenses caused by disgruntled clients.

2. You Miss an Important Deadline

This is another example of why it’s so critical for consultants to have, at a very minimum, Professional Liability Insurance in place. If you are unable to get a project to your client on time, even if it’s through no fault of your own, you could find yourself in a legal battle. Having professional liability coverage can protect your business from any financial losses you may incur, whether the delay was your fault or not, if faced with this type of scenario.

3. Someone Gets Injured at Your Office

Whether you work from home or in a leased space, if a client gets injured during a visit it can end up costing you big-time in court. General Liability Insurance can protect you financially if you face a lawsuit alleging third-party injury (for example, a client slipping on ice in your driveway).

4. You’re Accused of False Advertising

General Liability Insurance can also cover you if someone claims that you’ve misrepresented your services. These days, with so many consultants and other small business owners doing their own advertising on social media, there is plenty of opportunity for information to be misconstrued, General Liability can be tailored to include coverage for advertising injury, copyright infringement, and libel.

5. You Damage Property at a Client’s Home

With an increasing number of professionals working from home these days, it’s not unusual for a consultant to have meetings with clients right in their clients’ own homes. What if you back your car into a vehicle in their driveway? Or spill coffee on their white sofa? You can be sure they’ll want to be compensated! General Liability also covers property damage, and it follows you no matter where the damage may have taken place.

6. Your Computer System Gets Hacked

As a consultant, you likely have a significant amount of confidential client information stored in your database, or you might accept electronic payments. Cyber criminals often target consultants and small businesses because their online security tends to be weaker than that of large corporations. Cyber Liability Insurance will cover costs associated with an online security breach, such as client notification costs, infrastructure repairs, or personal loss of income.

7. You Have to Close Your Business Temporarily

If you have to pause your services for a while due to property damage, or some other catastrophe that makes it impossible for you to offer some or all of your usual services, having business income insurance can be the life raft you need. Depending on the specifics of your plan, this type of insurance will not only cover the loss of your own income, it might also finance a move to a temporary location and several other incidental expenses.

If you would like to learn more about your commercial insurance options as a consultant, contact us today at NOW Insurance. We can help you to tailor an affordable policy package that suits your exact needs. You can get an online quote in under 3 minutes from our simple online application.