Consulting Insurance

We offer the largest online marketplace for small business insurance. When you apply with us, you'll work with a licensed insurance agent who specializes in coverage for your profession.

Top insurance policies for consulting businesses

Business insurance covers costs if a client sues over advice that caused a financial loss, or if a data breach exposes sensitive information. These insurance policies protect against the most common risks in the consulting industry.

Professional liability insurance

This policy covers lawsuits related to a consultant's mistake, poor advice, or other accusation of professional negligence. It's also referred to as errors and omissions insurance or E&O insurance.

• Advice that causes financial loss
• Breach of contract
• Errors and oversights

General liability insurance

A general liability insurance policy defends against third-party lawsuits, such as a client who trips on a broken step at a consulting firm and suffers an injury. It's often required for a commercial lease.

• Client bodily injuries
• Accidental damage to a client's property
• Defamation and copyright lawsuits

Business owner's policy

A business owner's policy, or BOP, combines general liability coverage and commercial property insurance at a discount. Small business owners are often eligible for this bundle.

• Slip-and-fall injuries
• Client property damage
• Business property damage

Workers' comp insurance

Workers' compensation protects consulting companies and sole proprietors from work-related medical bills that health insurance won't cover. Most states require this coverage for your employees.

• Medical expenses from workplace accidents
• Disability benefits for injured workers
• Legal costs from work injuries

Cyber insurance

Cyber insurance helps consultants recover from costly cyberattacks and data breaches. It's also called cyber liability insurance or cybersecurity insurance.

• Ransomware attacks
• Client notification costs
• Data breach investigations

Commercial auto insurance

Almost every state requires commercial auto insurance for vehicles owned by a consulting business. It covers costs in the event of an accident involving your business vehicle.

• Auto accident legal fees
• Vandalism or other vehicle damage
• Vehicle theft

Consulting business insurance costs

From our customer data, here's a quick look at average consulting insurance costs:

Professional liability: $55 per month
General liability: $29 per month
Workers' compensation: $40 per month

Factors that can influence your premiums include:

• Your professional service, such as IT consulting or management consulting
• Number of employees
• Value of your business property
• Types of insurance purchased
• Coverage limits and deductibles
• Claims history

How do I get consultant business insurance?

TechInsurance helps you get insured quickly so you can secure contracts, comply with state laws, and protect your business against costly lawsuits and accidents. We work only with top-rated insurance companies to secure the best possible coverage for your consulting business.

You can get the right insurance in three simple steps:

• Fill out our easy online application with your business details.
• Compare free quotes from our trusted partners.
• Pay for a policy and download your certificate of insurance (COI).

Our licensed insurance agents know the consulting industry and will help you find coverage that matches your specific line of work. Gain peace of mind with advice from expert agents and policies from the leading carriers in the nation.

Hear from business owners like you who purchased insurance coverage.

Common questions about business insurance for consultants

Find answers to your questions about consulting insurance policies.

Do self-employed business consultants need insurance?

LLCs, startups, and sole proprietors all take on the risks of bigger businesses, only without the resources to recover quickly. And personal insurance policies won't provide protection for incidents related to your work. That's why consultants should invest in business insurance—even when it's not required.

You may need additional protection for:

• Your business property: Homeowner's insurance provides little to no protection for business property, which is why it's important to carry commercial property insurance or a business owner's policy, especially for computers, electronics, and other valuable equipment that your business depends on.
• Your vehicle: Beyond your commute, your personal auto policy won't cover accidents related to business use. If you drive to meet clients, you'll want to carry commercial auto insurance or hired and non-owned auto insurance (HNOA). Your state’s insurance requirements determine how much coverage you need.
• Client accidents: Every interaction with a client brings risk. If someone trips and suffers an injury in your office, or you accidentally drop a client's laptop, general liability insurance would help cover court costs, settlements, and similar expenses.
• Professional mistakes: Even the most careful consultant can be sued by a client looking to recoup their losses. Professional liability insurance covers legal costs when a dissatisfied client accuses you of a mistake, poor financial or legal advice, or other claims of negligence.
• Work-related injuries: A repetitive stress injury or ergonomic injury could result in hefty medical bills, which is why you need workers' compensation insurance. Personal health insurance won't cover injuries that are related to your job.

Do I need to have a professional consulting certification or license?

It's a good idea to be licensed and certified—and sometimes it's required. Here are a few instances where you might need a license or certification:

• Your local government requires a business license. States, counties, and cities often require you to get a business license to operate legally. You typically fill out an application, pay a fee, and then renew the license annually or after a set number of years.
• Your clients require it. Some clients will only work with licensed and certified consultants. For example, a school system might only hire an education consultant who's a Certified Educational Planner. These credentials show your business is reliable, especially when you're just starting out.
• You want to be the best in the business. Certifications are available for most types of consulting, from HR consulting to research and marketing. By continuing your education, you'll master skills that enable you to excel at your work, which will pay off for your business and your clients.

What other types of business insurance do consultants need?

Depending on the specifics of your business, you may need additional protection. Consultants should also consider:

• Hired and non-owned auto insurance (HNOA): Consultants who drive their own car to meet clients should invest in this insurance, as your personal auto insurance won't cover business use. HNOA provides auto liability coverage for personal, leased, and rented vehicles used by your business.
• Business interruption insurance: If a fire or storm forces your business to close, this policy will pay for employee wages and other day-to-day expenses until you can reopen. It's sometimes included with your commercial property insurance or business owner's policy.
• Commercial umbrella insurance: An umbrella policy boosts the protection of your general liability, commercial auto, and employer's liability insurance, activating when the limit is reached on the underlying policy.
• Fidelity bonds: If an employee at your consulting firm steals from a client, a fidelity bond guarantees they will be reimbursed. Clients might require your business to carry a bond, especially when you work in finance.

Explore on TechInsurance

Learn how to protect your consulting business by understanding the liability risks and taking steps to safeguard your assets.

Insurance requirements for small businesses vary from state to state. Find out what business insurance is required by law in your state, and make sure that you, your business, and your employees are protected.

Both general liability and professional liability are types of liability insurance that cover the business risks faced by small technology and IT businesses. They differ in the types of liabilities they insure against.

If you’re self-employed, it may not seem important whether you consider yourself an independent contractor or freelancer. But it may matter to prospective clients.

Some business insurance policies are required by law. Others can help your small business stay afloat when property damage, a business interruption, or a lawsuit threatens to pull you under.

When you own a small IT business, your focus is usually on your work and on your clients. However, it's worth taking time to consider what kind of legal structure you need and whether your needs will change as your business grows.