Business owner’s policy for consultants

A business owner’s policy is a cost-effective option for independent consultants and consulting businesses looking for comprehensive coverage. By bundling general liability insurance and property insurance at a discount, this policy protects against third-party liabilities and property damage or loss. Since consultants typically qualify as low-risk, your business may be eligible for a BOP.

This policy covers common risks, including:

• Customer injuries and property damage
• Slander and other advertising injuries
• Damage to your business property

Not all consulting businesses qualify for a business owner's policy. Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if your consulting company qualifies.

No one expects a third-party injury at a consulting office, but unexpected incidents happen in every industry. A business owner’s policy helps to cover third-party lawsuits and the cost of medical expenses or property damage in the following cases:

• A mail carrier trips on a research consulting office's front step and breaks an arm
• A client at a small HR consulting firm trips over an extension cord and gets a concussion
• An agricultural consultant forgets to close a barn door; farm equipment is stolen, and the owner files a lawsuit

The general liability portion of a BOP protects consultants against advertising injuries, including:

• Written defamation (libel) and spoken defamation (slander)
• Accusations of copyright infringement

For example, if an education consultant makes a negative comment about a competing consultant at a networking event and is sued for slander, general liability insurance could help pay for attorney's fees and other associated costs. Even if the consultant is not found liable, a BOP could help cover the cost of a court defense.

When damage, theft, or loss occurs at your consulting business, the commercial property insurance portion of a business owner’s policy can help cover it. A BOP helps pay for business property lost or damaged by:

• Fire
• Windstorms
• Theft
• Vandalism

A business owner’s policy covers many common risks in the consulting industry, but it does not offer complete protection. Other policies to consider include:

Professional liability insurance: This policy covers legal costs related to business mistakes or decisions that resulted in revenue loss and legal action by your client. It's sometimes called errors and omissions insurance (E&O).

Workers’ compensation insurance: Workers' comp is required in almost every state for consulting firms that have employees. It helps pay for medical bills from work-related injuries.

Cyber liability insurance: Cyber insurance provides financial protection against data breaches and cyberattacks. It can also provide liability coverage for consultants who recommend software or who are responsible for cybersecurity.

Commercial auto insurance: This policy covers costs in the event of an accident involving your consulting business's vehicle. Most states require this coverage for vehicles owned by a business.

Fidelity bonds: Fidelity bonds reimburse clients if an employee at your consulting firm steals from them. They're often required by client contracts.

Are you ready to safeguard your consulting firm with a business owner’s policy or other type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.