How can General Liability insurance help protect your consultant businesses?
General liability insurance is one of the most common types of insurance for a wide range of consultants, from business consultants to education consultants to management consultants.
Consultant general liability insurance could help cover the costs of:
- Slip-and-fall injuries for non-employees
- Property damage to someone else’s property
- Accusations of libel or slander
- Advertising injury
- Legal fees and defense costs
What can consultant General Liability insurance cover?
General liability insurance can provide independent consultants and consulting business owners help to cover workplace accidents such as:
1. Medical costs for someone hurt at your business
If a client or other non-employee trips in your office and sprains their wrist, your consultant general liability insurance could help cover their medical expenses up to your policy limit.**
General liability coverage typically excludes work illness or injuries that hurt yourself or an employee. But workers’ compensation insurance, required if you have employees in most states, could help cover those types of incident costs.
2. Damage you cause to someone else’s property
If you or your employees accidentally knock over shelves at a client’s office and ruin their inventory, general liability coverage could help pay for damages.
3. Libel, slander and defamation
If you or your employee say negative things about a client or a competitor and they sue you for defamation, your business’ general liability insurance may help cover the legal costs.
4. Legal defense costs
If your consulting business faces legal action, your general liability insurance could help pay for your legal defense costs, court fees, settlements or other legal fees associated with this lawsuit.
How much does General Liability insurance cost for consultants?
The cost of general liability insurance for a consultant (also called the premium) can depend on a number of factors, including:
- The size of your consulting business (sole proprietor, small consulting firm, etc.)
- The types of services you offer (IT consulting, education consulting, management consulting, marketing consulting, etc.)
- Your annual revenue and client volume
- The coverage options you choose
- Your insurance coverage limits and deductible
- The state where you work
- How long you’ve been in business
- Your claims history
ERGO NEXT offers tailored, affordable professional liability coverage that provides the right protection for your business.
Start a free quote with ERGO NEXT.
Is General Liability insurance required for consultants?
Whether you work as a sole proprietor or own a small consulting business, if you work in the consulting field, some professional organizations might require liability coverage before issuing you a license or a permit to work.
In addition, some clients might also ask you for proof of insurance, also called a certificate of insurance or a COI, before they’ll work with you. Larger companies, corporate clients and government organizations often include insurance requirements in consulting agreements.
Consultants often work in client offices, coworking spaces or public venues. Even a minor accident — like damaging client property or someone getting injured during a meeting — could lead to costly claims.
Consultant general liability insurance can help protect your business financially and demonstrate professionalism to clients. While it may not be legally required in most states, many consultants choose to carry it to protect their business from unexpected accidents, injuries or claims.
What other types of business insurance benefit consultants in addition to General Liability?
Consultant general liability insurance can cover many common business risks, but it doesn’t cover everything.
Commercial liability typically won’t cover policy exclusions like:
- Professional mistakes, miscalculations or omissions that cost a client money. This could be covered by professional liability insurance (also called errors and omissions insurance, or E&O).
- Cyberattacks or data breaches. Consultants are often trusted with sensitive client data such as business information, financial data, customer data or other proprietary digital content. If your business suffers a cybercrime, such as a ransomware attack, a phishing scam or other wrongdoing, cyber liability insurance, an optional add-on to general liability, could help protect you from the associated costs.
- Workplace illness or injuries to your employees or yourself. Workers’ compensation insurance, required in most states if you have employees, can help cover the costs of medical bills, job retraining and lost wages during recovery. Business owners can add themselves to their workers’ comp policy for an additional fee.
- Damage to your own business property. If a fire, theft, vandalism, broken water pipe or power outage cause damage to business fixtures, such as in-office computer equipment, furniture and flooring, commercial property insurance could help you recover some of your financial loss.
- Intentional wrongdoing or illegal acts. Commercial general liability only applies to accidents or the unexpected.
