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Business Insurance: Consultants

How does General Liability differ from Professional Liability?

  • General Liability is referred to as “trip and fall” insurance. Professional Liability covers errors or omissions, malpractice, and association professional liability issues. A General Liability policy excludes professional liability and vice versa.

Do I have a Professional Liability exposure?

  • Do you provide a professional service? Could you be sued for something you failed to do or something you did wrong? What are your clients’ expectations? Legal defense is one of the most important coverages provided.

What if my consulting business is in my home? (See Home-Based Business)

  • You need General Liability for your business-related liability issues. You also need to do a risk analysis about professional liability. Remember, anyone can sue you. Legal defense is an important feature of this policy.

Does it make a difference whether I use 1099 contractors or full-time or part-time employees?

  • Only if independent 1099 contractors have their own insurance and provide you with a certificate of insurance. If not, they are treated as employees for workers’ compensation and liability.

What about insurance offered by Trade Associations?

  • You will often find insurance products through trade associations cost effective, but there may be limitations. Does the definition of “insured” include the corporation, individual, employee, or subcontractor?

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