Business Consultant Insurance
Coverage considerations for business consultants who advise clients on strategy, operations, and decisions that affect their results.
What this coverage is intended to address
- ✓Professional liability insurance and Errors & Omissions (E&O) insurance are generally intended to respond when a client alleges that the advice or recommendations you provided caused them a financial loss.
- ✓General liability is generally intended to respond to third-party bodily injury or property damage that may arise during client-site visits.
- ✓Defense costs that may be associated with a covered claim arising from your advisory services.
Coverage products commonly considered
Most business consultant operations consider one or more of these coverage types:
Hypothetical claim scenarios
These are hypothetical examples only. Actual coverage depends on the policy form, exclusions, and carrier determination.
- A client alleges that the operational strategy you recommended led to a costly failed initiative and seeks to recover their losses; professional liability / E&O insurance is generally intended to respond to a covered claim of this type.
- While visiting a client's office, you accidentally damage their equipment; general liability insurance is generally intended to respond in the event of a covered claim.
Frequently asked questions
Why would a business consultant need professional liability or E&O insurance?
Because clients act on your advice, and they can allege that a recommendation caused them a loss. Professional liability insurance and Errors & Omissions (E&O) insurance are generally intended to respond to that kind of service-related claim. A licensed insurance professional can review your engagements.
Do I need general liability if I visit client sites?
Where you work on-site, general liability is generally intended to respond to third-party bodily injury or property damage that may occur during a visit. It complements your professional liability / E&O coverage. A licensed insurance professional can help you confirm the right combination.
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