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. No matter your field of expertise, accidents happen. Other policies to consider include:

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

Workers’ compensation insurance: This policy is required in almost every state for consulting firms that have employees. Workers’ comp covers medical costs for work-related injuries and illnesses.

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

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

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.