How Business Consultants Can Protect Themselves
You have probably donated what seems like an endless amount of time and money to becoming a business consultant. Doesn’t it make sense to protect that kind of investment in every way possible? You can do just that with the right insurance policies. Why is insurance necessary and how can it protect you? Well, as a business consultant you are entrusted to provide expert advice that can boost a client’s profile or restore their image. If your results do not hold up or you provide advice that actually hurts the client’s image, you could be looking at a financial disaster. The client could legally sue you and leave you in financial ruin.
Commercial General Liability Insurance
As a business consultant it is true that you have a relatively low risk of property damage and bodily harm losses. However, that doesn’t mean that both aren’t possible and that is why you need to safeguard yourself against both. You can do just that with commercial general liability insurance. Commercial general liability insurance is a policy that offers financial protection against bodily harm or property damage against third parties. This policy will protect you in the following events:
- If a client or vendor slips and falls while on your premises
- If you or an employee damages someone’s property
- If you are accused of false advertising or slander that leads to financial loss
Commercial general liability insurance will pay for any medical expenses that are related to the above-described incidents. It will also cover any repair damages and court related expenses. Sometimes simply paying for medical expenses and damaged property isn’t enough for some individuals. And, if they want to take the situation further, commercial general liability insurance can offer the financial shelter that you need.
Commercial Property Insurance
It really does not matter if you are renting an office space, making payments on an office space or your own that office space, you are going to need to do everything that you can to protect it and its contents. This is where commercial property insurance will offer the kind of protection that you need. Commercial property insurance will protect your physical building and everything inside it. For instance, if you experience a fire and it burns down half your office, commercial property insurance will pay to for the building and the contents that were lost. It should also be noted that commercial property insurance extends to natural disasters, theft and vandalism as well.
Business Interruptions Insurance Is A Must
You just learned about that commercial property insurance protects your building and its contents in the event of a fire, theft, vandalism or natural disaster. However, what are you going to do in the meantime? Repairing a half burnt down building is going to take some time and a lot of work. It is likely that you might be out of business for a while. Business interruption insurance can offer the kind of protection that you need for these situations. Business interruption insurance will pay for the income losses that you experience during the time that your doors are closed.
Business interruption insurance can even go as far to pay to have your stuff relocated to a new office if you would rather go that route instead of recouping on lost wages.
You Might Qualify For A CGL Package
When you are shopping for and building your insurance policy, you should consider a commercial general liability insurance package. Keep in mind that not every business will qualify for this, but if you do it could safe you a bundle of money on your premiums. A CGL package is basically just a bundled plan that includes liability coverage, property coverage and business interruptions coverage all in one unique, affordable package. This means that with a CGL package you would be offered the same protection that is offered with commercial general liability insurance, business interruptions insurance and commercial property insurance. To find out if you qualify for this kind of offering you can contact an agent here at LiabilityCover.
Commercial Umbrella Insurance
What most business consultants tend to forget is that insurance has limits. Sure, insurance can protect you, but it can only protect you so much. Some policies might offer $30,000 in protection, while others might offer as much as $100,000. It is not impossible to imagine that you could easily exceed these limits. This is especially true if you are a large firm with a large number of employees. Commercial umbrella insurance adds that extra layer of protection that you need. Commercial umbrella insurance basically extends your limits. It will kick in once you have exceeded your original limit.
The Most Important Policy You Need
It doesn’t matter if you are a business consultant in Ontario or some other part of Canada you are going to need professional liability insurance. This insurance is also known as errors and omissions insurance and professional indemnity insurance.
As a business consultant you already know that it will be your job to provide a client with critical information and advice that is going to transform their company’s image. Any slight mistake or misjudgment on your part could result in financial ruin. Sure, the client could just fire you and walk away, but what do you think the chances of that are if you hurt their companies image?
Very slim, and this is where professional liability insurance will offer a helping hand. This policy will cover any court related fees that you incur when you are sued for negligence. It should be noted that when it comes to professional liability insurance there are two different types of policies available.
- Occurrence – An occurrence policy is a policy that offers protection for incidents that occurred when the policy was in effect. This basically means that the policy will cover any claims that are made when the policy was in effect, even if you no longer have the insurance. Just as long as you had the insurance when the claim was made.
- Claims-Made – Claims made professional liability insurance can cover claims that are made even when you didn’t have the insurance active. For instance, if you just bought the policy and are later sued by a client that you provided advice to before the policy was in effect, the policy would go ahead and cover that claim.
Speak to a broker today
Purchasing insurance can be a complicated task as each insurer offers different terms, coverages, and quotes. With the help of a specialized broker, this process can be made easy, in most cases. Let us connect you with an expert today!
