This is a brief and simple guide to protecting your consulting business from liability lawsuits, losses due to business property damage or business interruption, as well as other potential issues. If you are starting a new consulting business, this is valuable advice that could save you a lot of money and give you a feeling of assurance and security in your new business venture.
Business Insurance Policies
Business insurance policies are designed to protect businesses from the various risks posed by liability lawsuits, adverse weather conditions, and other disasters preventing normal use of business premises, or causing disruptions to business. If you are wondering whether do consultants need insurance, the answer is not just “yes”, but “yes, several different insurance policies.” You should consult with an insurance company that specializes in business insurance policies to determine which types of insurance your consulting company should purchase.
General and Professional Liability Insurance
General liability insurance covers your consulting business from losses related to third-party bodily injury, personal injuries, and property damage. For instance, medical expenses will be covered for a client if they should slip and fall on your premises, or if one of your employees causes damage to a client’s home, the damage will be covered by general liability insurance.
Professional liability insurance protects your consulting business against any general mistake, negligence, neglect, or misinformation liability suits.
Business Property Insurance
This expands on coverage provided by general liability insurance policies. There may be risks associated with the specific location of your consulting firm, regardless of whether you own or rent the premises. These risks could include adverse weather conditions, such as hurricanes, or natural disasters, like earthquakes. Business property insurance also covers power outages if you run your business from home.
Business Interruption Insurance
If there has been an incident that interrupts the normal running of your business, such as a power outage, a fire, or broken equipment, you can cover the losses to your consulting company with business interruption insurance. This policy will cover income loss, operating expenses, and the cost of moving to a temporary location when business is halted due to an incident or natural disaster.
Other Important Insurance Policies
As well as the business insurance policies discussed above, there are several other important policies you should consider to protect your business from potentially massive losses. These policies include cyber liability insurance, equipment breakdown insurance, errors, and omissions insurance, and advertiser’s liability insurance.
Don’t Risk Losses When You Can Protect Your Business
This very simple guide should have opened your eyes to the many forms of business insurance policy that you should be considering as a consulting business owner. There are many risks to your business, including but not limited to liability lawsuits, property damage, or business interruption due to an incident or disaster.
The logical and sensible thing to do as a business owner is to consult with a professional insurance company to determine which business insurance policies will best protect you and your consulting company from massive losses.