Consulting Insurance from Massachusetts Specialists

What is Consulting Insurance?

Providing consulting services comes with certain risks. Along with the various common risks that most businesses face, consultants must also consider what could happen if their advice proves to be wrong. Consulting insurance can help consultants in Massachusetts shield themselves from both common and less common risks that they’re exposed to.

Consulting insurance provides specialized coverage for consultants. Most policies have a combination of individual coverages, which consultants may customize for their situation.

What Massachusetts professionals should have consultant insurance?

Most Massachusetts professionals who regularly consult for clients should consider consultant insurance. This includes professional consultants, as well as others who regularly give advice.

More specifically, professionals may want this insurance if they:

• Own their own established consulting firm
• Are employed as full-time or part-time consultants
• Do consulting work in addition to their main work
• Have established consulting relationships with clients
• Otherwise offer consulting services

Professionals who aren’t sure whether they should have this type of insurance should speak with a specialized insurance agent. An agent who knows consultant policies well will be able to explain what protections a policy would likely offer in the professional’s situation.

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Do consultants who are employed by a firm need their own, individual consultant policy?

Consultants who work as employees of a firm often, but not always, receive consultant insurance coverage from their firm. Additional coverage often isn’t required if a firm does provide coverage. An individual consultant policy might be needed if a firm doesn’t provide any or enough coverage.

Also, consultants should be aware that employer-provided coverage likely only applies to work done for the employer. Individual consulting on the side likely isn’t covered. Consultants who moonlight on their own might need an individual policy for the side work, regardless of whether their employer’s coverage or lack thereof.

Do consultants who are independent contractors need their own, individual consultant policy?

Consultants who are hired as independent contractors might or might not receive liability coverage from the firm that hires them. They should check with the firm to determine whether they ought to purchase an individual policy themselves.

An insurance agent who specializes in professional liability insurance for consultants can help evaluate whether an individual policy is needed when working as an independent contractor (or as an employee).

What coverages do consulting policies make available?

As mentioned, consulting policies typically have a combination of coverages. These may provide liability and/or property protections. Some of the more notable coverage options that most policies offer are:

• Professional Liability Coverage, which may cover errors made when providing consulting services
• General Liability Coverage, which may cover common accidents and defamation claims
• Cyber Liability Coverage, which may cover compromising data breaches and successful network attacks
• Commercial Umbrella Coverage, which may cover costly lawsuits with a secondary layer of protection
• Commercial Property Coverage, which may protect owned buildings, equipment and tools against damage or loss
• Equipment Coverage, which may protect owned equipment against unexpected breakage

How much do consultants pay for insurance?

Consultants pay different rates for insurance, as there are many different factors that influence cost. Premiums vary according to the coverages, limits and deductibles chosen. Other details that impact cost are the:

• Location of a consultant’s firm
• Number of consultants at a firm
• Scope of consulting services offered
• Past insurance claims history

Consultants can get quotes for several policies by working with an independent insurance agent. Independent agents aren’t linked with any one insurer, and can thus compare quotes from several insurance companies at the same time. Checking customized quotes from different insurers is the most accurate way to determine how much insurance will cost in a given situation.

How can consultants working in Massachusetts get Consulting Insurance?

For help purchasing consulting insurance in Massachusetts, contact the independent insurance agents at The Feingold Companies. Our agents will work closely with you to find a consulting policy that ensures you and your firm are well protected.