Consultant Insurance

Name: Consultant Insurance
Brand: Zensurance
Rating: 4.8 (1980 reviews)

Protect your practice against claims of negligence, errors, or omissions with consultant professional liability insurance.

Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

Trusted by over 300,000 Canadian small business owners!

Save up to 35% on your insurance

Get the best insurance quote in a few clicks!

Get a Free Quote

Partnerships with over 50 leading Canadian insurance providers

Insurance for consultants

As a consultant, business owners across industries rely on your expertise to improve their offerings. As businesses continue to prioritize transformation, innovation, and adoption, consultancy as an industry will continue to grow in demand. Whether you work specifically within a niche or have a broad focus, there is always a risk when it comes to offering professional advice.

We know what makes your consulting business unique. With over fifty insurance partners, we’ve helped consultants across industries protect their businesses with professional liability insurance policies tailored to meet their specific needs.

What is consultant insurance?

When you’re a consultant, you could be held liable for almost any negative impact your services have on a business. As there are various specialties found within the consulting field, different factors, such as industry and location, must be considered to find the perfect coverage for you.

Our Consultants’ Professional Liability Insurance policy packages are designed to accommodate the full range of consulting services and protect against specific risks associated with them, such as negligence, errors, omissions, or third-party damages.

What does it cover?

Different businesses have different risks; for example, a financial consultant won’t require the same type of coverage as a consultant specializing in event management.

We believe a comprehensive policy for your consulting business should cover the risks you are most likely to face. Those risks will vary by service, industry, and product; however, the following core coverages apply to most business owners:

Professional Liability Insurance: As a service provider, Professional Liability Insurance is essential to your business’s survival. Also known as Errors and Omissions Insurance, Professional Liability Insurance protects consultants against client claims alleging financial loss due to a service you provided, as well as lawsuits alleging negligence, misconduct, and failure to deliver services as promised.

Cyber Liability Insurance: As businesses move into the digital space, cybercrime is becoming more common, making it challenging for business owners to protect their technology systems and data. Cyber Liability Insurance may cover costs associated with electronic incidents, such as loss of income, notification costs, or data infrastructure repair.

Commercial General Liability Insurance (CGL): Whether you work from home or have an office, mistakes can happen anywhere. Commercial General Liability Insurance can protect consultants against common claims or lawsuits alleging third-party bodily injury (e.g., slip-and-fall), property damage, false advertising, and libel/slander. Should you be sued, CGL may cover legal defence costs, regardless of the lawsuit’s outcome.

Business Contents and Portable Electronics Coverage: Business Contents and Portable Electronics are two types of coverage that protect your business’s physical assets. Business Contents provides coverage for loss or damage to your office’s physical contents, such as equipment, technology, or improvements you’ve made to the office. Portable Electronics may cover the cost to replace or repair portable electronics that are damaged or stolen inside and outside of your office.

Legal Expense Insurance: Provides access to general legal advice with an experienced lawyer, as well as coverage for legal expenses incurred throughout the legal process. This type of insurance policy may cover legal costs associated with defending your legal rights relating to employment disputes, debt recovery, contract disputes, or tax protection.

How much does consultant insurance cost?

Every business is unique, and insurance requirements will vary by size and industry. Small- to medium-sized consulting practice owners can anticipate premiums starting from $350 annually for a Professional Liability Insurance policy with a $500K limit.

When you fill out our online application, we will ask some questions about your business to understand your requirements better. The following factors are taken into consideration when determining the best policy options for your practice:

Industry
Years of Experience
Number of Employees
Claims History
Annual and Projected Gross Revenue

We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.

Do consultants need insurance?

Any individual or business providing professional services or advice should protect their business with a Consultant Insurance policy package. If a client determines your advice or service was less than satisfactory or resulted in a financial loss to them, they may take legal action.

Without the right insurance coverage, your practice may suffer severe financial stress due to a lawsuit. Independent consultants and freelancers are especially vulnerable.

We’ve insured consultants practicing in a range of sectors, including:

Getting insured is quick and easy!

Complete our 5-minute online application for a free consultant insurance quote.

Get a Free Quote

Common claims scenarios

Problem: As an Immigration Consultant, you were hired to assist a client in applying for a work visa and permanent residency in Canada. In the application process, you forget to submit additional documents, which causes significant delays. The client is unable to begin working and sues you for negligence and loss of income.

Outcome: You are successfully sued in court. Your E&O coverage could cover the defence costs and monetary judgment, totalling $55,000.

Problem: A cyber hacker gains access to your internal database and steals your client’s personal information, including names, addresses, and credit card details.

Outcome: Your Cyber Liability Insurance may cover the costs of notifying the clients affected and providing credit monitoring services, as well as legal expenses and the cost of restoring your data system. The total cost covered is $500,000.

Problem: A client visits your home office for a consultation but falls and injures themselves on the way up the stairs.

Outcome: Your client successfully sues you for bodily injury. Your Commercial General Liability (CGL) coverage may cover the medical expenses and legal fees, totalling $15,000.

Frequently asked questions

Is Consultant Insurance mandatory for consultants and independent contractors?Zensurance

Is Consultant Insurance mandatory for consultants and independent contractors?

Although Consultant Insurance is not mandatory by law, it may be important to protect your business with a consultant insurance policy because clients have the legal right to file claims for mistakes caused by the negligence of consultants and independent contractors. Most clients will require you to have Consultant Insurance before hiring you because small mistakes on your part could lead to huge financial losses for them.

Does my Errors and Omissions (Professional Liability) Insurance policy also cover Cyber Liability damages?Zensurance

Does my Errors and Omissions (Professional Liability) Insurance policy also cover Cyber Liability damages?

Errors and Omissions policies don’t cover damages to third parties from cybersecurity breaches. If you store electronic data related to clients, whether personal or financial, it may be a good idea to ensure that your Consultant Insurance policy includes coverage for cyber liability because you may be held liable for third-party damages caused by cyber attacks on your servers.

Do consultants need both Professional Liability Insurance and Errors & Omissions Insurance?Zensurance

Do consultants need both Professional Liability Insurance and Errors & Omissions Insurance?

Errors & Omissions (E&O) Insurance is a popular alternative name for Professional Liability Insurance, but the latter is the official name in the insurance industry. Regardless of what you call the policy, it is recommended for protecting any consulting practice because It provides protection from errors and missed deadlines (due to negligence) that lead to a financial loss for clients.