You have consistently been told that you are great at giving advice; you just seem to have a knack for it.
After graduating from business school, you decided that it was high-time you put your advice-giving skill to good use: you opened your own consulting agency. As a consultant, it is your job to help other organizations meet their business goals and expand. You are hired to help small business leaders lead where they haven’t yet found their footing, and it is by your industry knowledge that they base their decisions.
If the advice you give should result in the loss of profits or reputation, your client has every right to sue your agency. If this isn’t reason enough to start comparing quotes and sign up with CoverHound for business insurance for consultants, here are four more.
Your consulting agency can be sued for liability
This is above all the most significant of the four reasons to get business insurance. If you gave advice that resulted in lost business for your client, they have a right to sue you for liability. A professional liability insurance policy will cover the litigation and possible restitution fees related to the lawsuit, keeping your own firm’s bank account in the clear.
Clients will try to back out of contracts
Let’s say you have been working with a client for the last eight months to transform their business, but they haven’t paid you for the last six. You know that they have implemented strategies your firm has designed for the success of their business and that it’s working. Suddenly, the client wants out of the contract, claiming falsely that the business plan isn’t working. A contractual liability policy will protect you from the shady dealings of the client trying to breach the contract. If the client wants out of the contract, they will have to prove why it’s necessary in court.
Hired employee who falsified their experience
It is your job to make sure your employees are who they say they are and have the experience necessary for the job. This means you need to call references and double-check their merits. If one of your consultants has been working with a client and offering poor services, the client has cause to leave the contract with your firm and to (again) sue your agency. Make sure your staff are trained before giving them clients face time.
Elevate consultant agency’s image
Businesses prefer forming partnerships with other businesses that make it their priority to protect their partners and their clientele. By investing in a business insurance policy, you are showing that if something were to happen to a client or staff member, there would be financial coverage. A business that works to protect their clients and staff is a business that understands responsibility. Reputation and business interests go hand in hand. A good reputation is better had by a business insurance policy.
Worried business insurance is too expensive? Think again. When you compare quotes with CoverHound, you’ll find a policy that works for your business and your wallet. If you or your consultancy business handle your clients’ propriety information electronically, you’d be wise to also consider a cybersecurity insurance policy.