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.

Consultants advise businesses and teams to help them save money and reduce risks. However, consulting itself comes with its own share of liability.

A business owner's policy can help consulting firms by protecting against some of the most common risks associated with the industry, including:

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 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 is required in almost every state for consulting firms that have employees. It helps pay for medical bills from work-related injuries.

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 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 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.