Insuring Business Consultants in 2021

October 6, 2021

The future looks optimistic for business consultants. Globally, disruption of the COVID-19 pandemic has created unprecedented opportunities for change.

But the industry is not without its challenges. Consulting firms are also seeing a shortage of consultants, according to Bloomberg Magazine. A survey finds that nearly two-thirds of consulting firms are understaffed, and one-fifth are turning down work as a result. (1)

Business consultants leverage a wide range of skills and emotional intelligence as they work with teams of people and evolving technology. Experts in change management, business consultants often assist companies in managing change. In order to achieve successful and sustainable outcomes, consultants must engage people across all levels of the organization.

Because business consultants deal with such a wide range of skills, responsibilities, and stakeholders, they need savvy brokers on their side and a policy that covers all their unique risks.

How Do Business Consultants Work?

The business consultancy industry focuses on the following services:

Strategic management consulting services

Financial management consulting services

Marketing management consulting services

Human resources management consulting services

Operations and supply chain management consulting services

The goal of business consulting is to improve the financial performance, workflow, sales, and strategic aspects of an organization's operations and procedures. A company's organizational weaknesses are thoroughly analyzed and then improvement plans are developed after performing this analysis.

There are several reasons why an organization might hire a business consultant:

In-house expertise, staff, or resources are not available for these improvements

They want to gain an objective, independent perspective on the organization

They seek a consultant with industry knowledge or expertise specific to their industry

In Canada, IBIS World reports that new government protocols and legislation will likely result in increased demand for business consulting services, in spite of the recent impact of COVID-19. (1)

Do Business Consultants Need PL Insurance?

The right kind of insurance is crucial for business consultants, but many consultancies and freelancers are not adequately insured. This leaves them vulnerable to a negligence lawsuit if an unhappy client decides to sue.

This industry has some notable exposures:

Client financial losses as a result of administrative errors, resulting in negligence accusations

Advice to the client which is poor or misguided, resulting in financial loss, such as advising the client to hire a poor candidate

Advertisements that damage a client's reputation, misrepresentations of their products or services, and even accusations of slander and libel

An unexpected expense incurred by the consultant due to disciplinary proceedings brought by regulatory bodies in the industry of the client

Data security failures

Damage to property and injuries to persons

A lawsuit could damage their reputation along with lost time and money in dealing with the lawsuit, even if they are not found liable.

Offering the Most Comprehensive Insurance Policy for Business Consultants

For this reason, SWG PL offers a comprehensive package of CGL and E&O to cover all the needs for business and management consultants. The coverage provided by this policy covers small to large businesses and freelancers from various risks.

The advantage of specialized Professional Liability is that it covers all markets within the broader consulting sector. Among them are:

Strategic management

Operations management

Industrial engineering

Architecture

Industrial/Organizational psychology

Industrial psychology

Organizational psychology

Organizational development

Project Management

About SWG Professional Liability Insurance for Business Consultants

SWG PL - Miscellaneous Professional Liability insurance offers a packaged E&O and CGL policy that covers a wide range of classes of business. Tailored E&O coverage protects small to large firms from a broad range of miscellaneous risks. SWG provides a Miscellaneous PL policy at competitive rates, bringing extensive knowledge and underwriting experience in professional liability.

Since it can be hard to pinpoint when an error or omission occurred, our policy is issued on a claims-made basis. This means the insured’s work will be covered dating back to the earliest date of the continuous Professional Liability coverage.

Our coverage includes but is not limited to the list below. Contact us if you don’t see what you’re looking for.

Bookkeepers

Business Consultants

Collection Agencies

Travel Agents

Employment Agencies

Event Planners

Interior Designers

Leasing Agents

Management Consultants

Translators

Utility Locators

And many more

More details are available on our product page at https://swgins.com/product/miscellaneous.html.

Content is current as of the date of broadcast and is subject to change without notice.


Source:

  1. https://www.bloomberg.com/news/articles/2021-07-29/the-consulting-business-booms-just-as-consultants-disappear