If you’re running a small business consultancy, insurance cover offers an essential safety net. With adequate insurance you can rest assured that, should anything ever go wrong, you’ll have all the funds and support you need to recover.
But the specific type of insurance you’ll need will depend on a few things. There are certain types of cover that all small business consultancies will need. But you’ll only need other types of cover if you meet certain criteria – such as employing staff.
So let’s take a look at all the different types of insurance you might need as a small business consultancy.
Professional Indemnity Insurance
If you run any type of consultancy business of any size, then you’ll need professional indemnity insurance.
People work with consultants because they value their experience, insights, and advice. But this advice doesn’t always pay off. Things don’t always turn out the way you expect them to. And if a client makes a major business decision based on your advice and it ends up losing them money, they might make a claim against you.
Professional indemnity insurance covers you against claims made by a client for any financial losses they feel they’ve suffered as a result of following your advice or using your services. It means that, if things go wrong, your clients can recover their losses, and you can retain your reputation. That’s why certain clients may refuse to work with you don’t have a professional indemnity insurance policy in place.
Head here to read our detailed guide to what professional indemnity insurance is, and what it covers.
Cyber Breach Insurance
This is another type of insurance which, while not required by law, is nonetheless becoming increasingly essential for all small business consultancies.
No matter what sector you work in, if you’re a consultant it’s likely that you do a lot of your work online. And even if you don’t, you’ll certainly store your most vital data on hard drives and servers, rather than offline in filing cabinets.
All of this makes you vulnerable to cyberattacks. Cyber breach insurance will protect your business against many online threats. It will also help you recover from data breaches, hacking, and other online criminal activity.
Head here to read our detailed guide to cyber breach insurance, and what it covers.
Business Contents Insurance
Most contents insurance policies cover for the loss, theft or damage of the contents of offices and other business premises. But it’s worth getting this sort of cover even if you run your small business consultancy from home.
This will cover you for any theft, damage, or loss to your business equipment. It can cover laptops, smartphones, and personal belongings, whether you store them in an office or keep them at home.
Would you still be able to do your job without your laptop, your tablet, or your smartphone? If the answer’s no, then you might begin to understand the value of contents insurance!
Head here to read our detailed guide to contents insurance, and what it covers.
Commercial Buildings Insurance
If fire or flood causes extensive damage to your business premises, buildings insurance can cover you for any repairs. The cover can also include trace and access services, to help you determine the how the incident started.
Obviously, you’ll only need this sort of cover if you work out of a business premises. If you work from home, your home insurance should cover you for any damage. But check your policy wording if you’re not sure.
Head here to read our detailed guide to buildings insurance, and what it covers.
Employer’s Liability Insurance
If you work alone, this one’s not necessary. But if you employ any staff, then you have a legal obligation to get employer’s liability insurance.
This covers potential compensation costs and legal fees should any employee or ex-employee make a claim against you for bodily injury they sustained through their work. You might think that accidents are unlikely in the world of small business consultancy. But anyone can slip or fall anywhere, even in a perfectly safe office environment.
Head here to read our detailed guide to employer’s liability insurance, and what it covers.
Public Liability Insurance
Do clients, customers or other members of the public ever visit your business premises? If so, public liability insurance will protect you should anyone injure themselves or damage one of their possessions while they’re on your property.
But even if you don’t operate out of your own business premises, public liability insurance can still be a lifesaver. As a small business consultant, you’ll almost certainly spend a lot of your time visiting clients at their premises. If you cause any accidents while visiting a client – even if it’s just to spill a cup of coffee on a laptop – public liability insurance will have you covered.
Head here to read our detailed guide to public liability insurance, and what it covers.
A Tailored Insurance Package for Your Small Business Consultancy
So the sort of insurance cover you need as a small business consultancy will depend on many factors. Don’t get a one-size-fits-all policy. Instead, get a bespoke policy that will only cover you for the things you need covering.
At Tapoly, we offer cover for as little as £11 a month, and we’ll tailor our policies to meet your exact needs. Head here for more information, and to get a free quote.