Why is business insurance for marketing consultants a must-have?
Should a client's profitability decline after implementing your marketing campaign, it could be disastrous for your small business. Marketing consultant insurance coverage provides peace of mind by offering financial protection against client lawsuits, injuries, accidents, and other risks.
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6 insurance policies every marketing consultant should consider
These insurance policies protect against the most common risks and liabilities in the marketing consulting industry.
Professional liability insurance
Professional liability coverage handles lawsuits related to mistakes, poor advice, or other accusations 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 slips on a wet floor at your marketing 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 infringement 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 insurance protects marketing agencies and sole proprietors from work-related medical bills health insurance won't cover. Most states require coverage for employees.
- Medical expenses from workplace accidents
- Disability benefits for injured workers
- Legal costs from work injuries
Cyber insurance
Cyber insurance helps marketing 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 marketing 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
Marketing consultant insurance cost
From our customer data, here's a quick look at average marketing consulting insurance costs:
Professional liability: $55 per month
General liability: $29 per month
Workers' compensation: $41 per month
Factors that can influence your premiums include:
- Your professional services offered
- Number of employees
- Value of your business property
- Types of insurance products purchased
- Coverage limits and deductibles
- Claims history
Hear from business owners like you who purchased insurance coverage.
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Common questions about marketing consultant insurance
Review answers to frequently asked questions (FAQs) about business consultant insurance coverage and more.
Do self-employed marketing consultants need insurance?
While self-employed consultants might not be required by law to carry insurance, having coverage can help you fulfill contract terms and protect your business from financial risks and liabilities.
Some states might require you to carry professional liability insurance (sometimes called errors and omissions coverage or E&O) in order to start up a consulting practice or work within certain facilities.
Additionally, you should keep in mind your personal auto insurance policy likely won’t cover work-related accidents, such as a car collision involving a business-owned vehicle or an on-site work injury.
For the protection of your business-owned vehicles, you'll need commercial auto insurance. This policy covers legal fees, medical expenses, and other related costs if your company-owned vehicle is involved in an accident. For personal, leased, and rented vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA).
Similarly, personal health insurance policies won't cover work-related injuries and illnesses. That means you would have to pay hefty medical bills out of pocket if you suffer an injury on the job or develop an occupational illness.
Carrying a workers’ compensation plan, even if you're a sole proprietor or limited liability company (LLC) with no employees, can financially protect you if you’re unable to work due to an on-the-job injury or illness, as well as cover your medical bills.
Do I need a consulting certification or license for my marketing consulting business?
Most states require consulting businesses of any kind, including marketing consultants, to have a license to legally operate.
Depending on your state, you may have to apply for your business license through your city or county government, while other states may direct you to a state-level office. In some cases, you might have to obtain a special permit or industry-specific certification, depending on your state, consulting services, and the clients you work with.
Business licensure offers many benefits, including:
- Tax compliance
- Credibility
- Financial benefits and credit
Additionally, continuing your marketing consultant education is a great way to showcase your expertise to prospective clients, and help set you apart from the competition.
For your marketing consultancy practice, you can acquire certifications in several areas within the marketing field. Examples include content marketing, marketing management, digital marketing, and even sales management. These are good options for marketing consultants who are just starting their consulting practice and wish to add to their credentials.
What other types of insurance coverage do marketing consultants need?
There are several additional policies you should consider as part of your risk management plan against common risks and potential financial losses:
- Hired and non-owned auto (HNOA) insurance: An HNOA policy offers liability protection for sole proprietors or employees who drive their own vehicle for work, or a leased or rented vehicle.
- Business interruption insurance: A business interruption policy covers financial losses if your business is forced to close temporarily due to a fire or extreme weather. It can often be added to a business owner's policy (BOP).
- Commercial umbrella insurance: Umbrella insurance covers legal expenses when the limit is reached on another liability policy, such as general liability, employer's liability insurance, or commercial auto insurance. Sole proprietors may need this coverage to meet client requirements for higher liability limits.
- Fidelity bonds: Should an employee commit fraud or theft under your business name, a fidelity bond would cover the legal expenses and cost of reimbursing your customer. However, your business would have to repay the insurance company for the cost of the claim.
