When you’re starting a new consulting firm, you may have some trouble figuring out what type of insurance you need to carry. You don’t want to pay for too much coverage, but you also don’t want to leave your business exposed to unnecessary risks. To take away some of the confusion, here are four coverages: general liability, professional liability, commercial property and workers comp insurance: that you should carry to make sure your business is properly covered.
General liability protects your business in case someone is harmed at or by your business. For example, if a client slips and falls on your steps and attempts to file a lawsuit, general liability will cover any legal expenses or payments for which you are found liable.
Also known as Malpractice or Errors and Omissions insurance, professional liability keeps your business protected in case a client claims that your guidance caused them to experience some sort of loss. This is usually a required coverage for medical practitioners.
Commercial property insurance covers the repair or replacement costs of items lost due to fires, storms, vandalism or theft. Even if you don’t own an office, items such as your laptop and data can be covered.
Workers comp insurance isn’t required everywhere, but it is recommended if you have at least one employee. If that employee gets hurt while performing business activities, workers compensation will cover any costs for which you are found liable.