SWG PL - Tips for Insuring Business Consultants

August 26, 2020

Business consultants help organizations improve their business goals, whether it’s better financial performance, improved workflows, increased sales, or making strategic changes in operations and procedures. They do this by making recommendations after performing thorough analysis of the company’s organizational weaknesses and then developing plans for improvement.

An organization might hire a business consultancy for a number of reasons:

They lack the in-house expertise, staff person or resources to make these improvements internally

They’re looking to gain an independent, external, and therefore more objective, perspective on the organization

They want access to a consultant’s specific expertise or industry know-how

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)

When Do Business Consultants Need Insurance?

Business consultants need more coverage than just general liability, but many business consulting firms and freelancers aren’t covered by the right type of insurance. This leaves them potentially exposed should an unhappy client decide to sue for negligence.

Here are some of the major exposures for this industry:

Administrative errors that lead to financial loss for the client, resulting in an accusation of negligence

Poor or misguided advice to the client and incurs financial loss, such as a poor hire at the recommendation of an HR consultant

False advertising, misrepresenting a client’s product or service, and even accusations of slander or defamation

Unexpected expenses incurred to the consultant from disciplinary proceedings by regulatory bodies of associations in the client’s industry

Failure to protect sensitive client data

Bodily injury and property damage

Even if they aren’t found liable, a lawsuit could cost their reputation, along with lost time and money to deal with the court case.

This is why SWG PL offers a combined CGL and E&O package to cover a wide range of business and management consultants. This tailored coverage protects freelancers and small to large sized businesses from a range of miscellaneous risks.

The advantage of specialized Professional Liability is that it covers a range of markets within the broad business consulting industry. These include areas such as:

Strategic management

Operations management

Industrial engineering

Architecture

Industrial/Organizational psychology

Industrial psychology

Organizational psychology

Organizational development

Project Management


What Makes a Good PL Submission?

For a fast turnaround time in the submission process, South Western has a few recommendations:

  1. Complete the application in full, section by section, with as many details as possible
  2. Provide a detailed description of the services being provided by the insured
  3. Include the limits you would like quoted and the deductibles you are looking for
  4. Include details of any past claims in the insured’s history
  5. Provide details about the client’s fee income
  6. Include the professional resumes of the insured or of key people in the insured’s company

When it comes to putting together a good submission, the more accurate and complete the application, the faster SWG can turn it around and get the broker terms for their client.

The Advantages of SWG PL - 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 website.

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

Source:

  1. https://www.ibisworld.com/canada/market-research-reports/management-consulting-industry/