Business insurance is an important way to protect your livelihood as a consultant. Taking the time to create an adequate safety net could go a long way towards ensuring the success of your consultancy for years to come.
But, you’re also busy. Researching which types of coverage you might need, getting quotes, and comparing policies might seem like too much work to take on when there’s so much else you need to do. You might not even know where to begin!
Fortunately, finding business insurance can be easier than you think. Here are 5 steps to buying consultant insurance online to help get you started.
1. Check your insurance requirements
As a small business owner, you may be required to have certain forms of insurance. This is often determined by state or local laws, the type of consulting you do, the clients you work with, and other factors. It makes sense to tick these policies off your list before considering others.
For example, all states except Texas legally require businesses to have Worker’s Compensation insurance if they have employees. This requirement may also extend to sole proprietors in some industries. Your state or local government website should have information on these requirements for different types of consultants.
Other forms of insurance may not be required by law, but they may be necessary to do with business with vendors, clients, or customers. For example, your commercial landlord might ask for proof of General Liability coverage before leasing office space to you. Clients and customers may expect you to have Professional Liability insurance, so they feel confident hiring you as their consultant.
2. Do a risk assessment
There are many different insurance products available to help protect all areas of a small business. However, not every type of policy will be relevant to you or your business. Doing a risk assessment of your consultancy could help you decide which insurance policies you may need.
A risk assessment can be as simple as thinking about the mistakes, accidents, and other issues that could derail your business. These might be risks that are common to most consultants, such as negligence or missing important deadlines. They can also be specific to your industry. For example, a management consultant may have different insurance needs than an IT consultant.
3. Shop around for policies
There are many companies offering consultant insurance, each with their own coverage options, policy wordings, and premiums. As a busy consultant, it may be tempting to just go with the first insurer you find so you can get back to work.
But not all policies are created equal. It’s important to carefully review your options and choose policies that will provide enough coverage for your small consultant business. Sites like BizInsure make it easy to compare consultant insurance policies and pricing across multiple insurance companies.
4. Choose your policy
Once you’ve received quotes from different insurers, it’s time to choose your policies. There are many factors to consider when buying consultant insurance, including coverage levels and premiums.
Protecting your small business is likely a big reason why you’re buying insurance. Claims and lawsuits can be financially damaging, often to both your business and personal finances. As you choose your insurance policies, you should carefully think about how much coverage you need. Lower levels of coverage generally mean lower premiums, but you still want to be comfortably protected in the event of an accident or other insurance claim.
5. Review your coverage annually
With any luck, your consultancy will grow in success over the years. As your small business grows and changes over time, your insurance needs will likely grow and change as well. Reviewing your consultant insurance annually (or more frequently) could help ensure that you are always adequately covered.
If there have been major changes to your small business or how you work, you may need to update your insurance coverage. This may include events, such as hiring employees, taking on larger contracts, or expanding the business into new geographic areas.
Find Consultant Insurance Today
BizInsure makes it simple and easy to find consultant insurance to match your small business’ needs. Coverage is available for those working in many industries, including management consultants, business consultant’s insurance, marketing consultant, and IT consultant insurance.