As a management consultant, you are responsible for helping businesses and organizations to grow — and hopefully be profitable. With your extensive knowledge, expertise, skills, and objectivity, you advise organizations on how best to manage, operate, structure, and strategize various aspects of their business and industry. Management consulting is a lucrative profession for individuals with these types of skills, but it’s not without its risks. Possible risks when you are a management consultant or own a consulting business range from accidents that can occur on your business premises as well as judgment calls that cost your clients money. Due to the many risks associated with the profession, management consultant insurance is essential.
If you choose just one type of management consultant insurance, general liability insurance should be the policy you get. It covers the most basic of risks with your business that cause injury or damages to your clients. For example, if a client is in your management consultant office and they have an accident caused by file boxes or cabinets in your office, they can sue you for damages. General liability insurance includes premises liability, which will help pay for these costs.
If your management consultant business has other employees, they should be covered by worker’s comp insurance. Worker’s comp helps pay for medical expenses and income loss from work-related injuries or illnesses. For example, if one of your employees was reaching high for a box and hurt her back, the medical visits and surgeries would be covered by worker’s comp. Your employee would also receive income assistance while they were out of work recovering from their injury.
As a consulting business, you have company vehicles that are used for visiting client’s offices, as well as picking up office supplies. Any time a vehicle is used for company purposes, it needs to be covered by commercial auto insurance. If an accident occurs, the damages to the car, property, and bodily injury will all be covered by commercial auto. This policy may also provide coverage for theft or vandalism.
Professional Liability/ E&O
Professional liability insurance, also called Errors and Omissions (E&O) protects against risks associated with management consulting work. As a management consultant, you are offering advice and guidance to other organizations, but errors can made, even if unintentional. If a bad judgment call on your part led to possible loss or damage to the organization, they can turn around and sue you for damages. As part of your management consultant insurance portfolio, professional liability will help pay for litigation fees and court costs associated with this type of lawsuit.
Whether you are a management consultant that specializes in business strategy, financial operations, marketing, management controls, information technology, supply chain management, e-commerce or human resources management consultant insurance protects you from risks associated with your profession. Management consulting can be a rewarding career, and you want to protect all of the hard work you put into your business by choosing adequate business insurance.