Why do management consultants need insurance?
The role of a management consultant is full of responsibilities, an exciting profession that offers flexibility and freedom in return. One of the biggest challenges is managing the expectations of your clients is ensuring deadlines are met and that you continually deliver high-quality results.
Protecting your business with tailored management consultant professional liability insurance and general liability insurance has never been more important. BizInsure offers affordable insurance solutions to suit your management consultant business needs. Click or call us today to compare free quotes today.
Risks management consultants might face in their daily business
Managing the potential risks that you may encounter as a management consultant well before they arise is a smart business move. By having the right business insurance coverages in place, you can help protect your business from disaster.
A client could make a lawsuit against the professional delivery of your management consultancy work claiming:
- Professional negligence in the delivery of your work
- The work you provided was incomplete
- Providing incorrect advice
- Failure to perform your professional duties
- Mistakes were made
This is where your Professional Liability (Errors & Omissions insurance) insurance comes into play.
The other type of insurance which you need to consider is General Liability insurance. These are some of the associated risks it can provide protection from:
- Accidentally causing injury to a client. For example, you may have a client visiting your business premises and they accidentally trip and fall down the stairs breaking their ankle. General Liability insurance provides financial protection by covering any related legal or medical expenses.
- If accidental damage is caused to a client’s personal property. You may be out visiting a client at their office and accidentally spill a cup of coffee over their laptop. General Liability insurance will cover the expenses associated with repairing or replacing the property.
Professional liability insurance for management consultants
What does management consultant professional liability insurance cover
When you’re in the business of delivering advice and instructions to your clients, Professional Liability insurance becomes a vital form of protection as a management consultant.
It helps by providing protection to your business against claims for damages by clients relating to your services, actions and recommendations. These may be claims for allegations of negligence, inaccuracy, poor advice, failure to perform and any other associated risks from the advice you or your business provides.
A client may make a lawsuit against your business for poor advice causing them to experience economic damage and this is when your policy will cover associated defence costs and any related damages that the client may incur.
How much does professional liability insurance cost for management consultant
On average BizInsure customers pay $70.71 per month for their Management Consultant Professional Liability insurance policy in 2018.
Our analysis also found that roughly 25.5% of BizInsure customers paid below $40 per month for their policy.
Below is the full breakdown:
Which professional liability insurance limits do management consultants choose?
Our analysis shows that 85.5% of our Management Consultant customers select $1M as their coverage limit, however, limits can go as high as $2M and as low as $500K.
The policy limit impacts the cost of the policy, with the higher the limit level the higher the premium, as shown in the graph below.
General liability insurance for management consultants
What does general liability insurance cover
One of the most common types of business insurance among management consultants is General Liability insurance (also known as Commercial General Liability or Business Liability). It is designed to protect your business against claims for bodily injury or property damage lawsuits from outside parties.
Whether the lawsuit is actual or accused, General Liability insurance provides financial reassurance, protecting your business by covering the defence costs and any damages up to your selected policy limit.
How much does general liability insurance cost for management consultant
Based on analysis of BizInsure customer data from 2018, the average cost of a General Liability insurance policy for management consultants was $38.17 per month.