Consultant Liability Insurance Cost
Get all the details you need about professional liability insurance costs for consultants, from must-haves to optional extras. Discover the coverage options available and what influences pricing, then explore affordable solutions from Insurance Canopy tailored to your needs.
How Much Does Liability Insurance Cost for a Consulting Business?
Consultant liability insurance cost starts at just $21 per month. That’s lower than the national average of $87 a month so you can get the protection your business needs without breaking the bank.
Most Popular Consultant Insurance Policies (+ Their Cost)
Every consultant needs the right protection to stay covered. Here’s a simple breakdown of consulting business insurance costs and the most common policies.
| Our average price | Industry average | ||||
|---|---|---|---|---|---|
|
Professional Liability
|
$229 / year |
$1,1102.04 / year. (for sole proprietors without employees) |
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|
General Liability |
$229 / year
|
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|
Additional Insureds |
Free
|
|
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|
Cyber Liability |
$70 / year
|
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|
Tools and Equipment |
$26/ year
|
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|
Workers Compensation |
Varies based on factors such as business size, number of employees, and risk level. |
|
**based on the median cost of policies for cleaning insurance bought with Insurance Canopy.
Cost of Professional Liability Insurance for Consultants
Professional liability insurance starts at $229 per year or $21.08 a month with Insurance Canopy. This coverage protects consultants from claims related to errors, omissions, or negligence in their services.
For example, if a client says your advice led to a mistake or a problem, this insurance can cover the legal costs, fees, and settlements needed to resolve the issue. It’s career-saving protection for consultants who offer advice or services that clients rely on. Here’s a quick look at professional liability insurance costs for consultants.
Good news: Both professional and general liability are automatically included in our base policy.
Cost of General Liability Insurance for Consultants
General liability insurance costs $229/year or $21.08 a month with Insurance Canopy. It’s designed to protect you if someone claims bodily injury, property damage, or personal injury because of your work.
For example, if a client visits your office and slips on a wet floor this insurance can cover the legal fees, medical costs, and any settlements needed to resolve the issue. Or if you accidentally damage property belonging to your client during a consultation, it can cover the cost of repair or replacement.
Keep in mind that this coverage doesn’t apply to injuries or damages involving you or your employees — it only covers third parties like your clients.
| Coverage | Lowest Annual Cost / Lowest Monthly Cost |
|---|---|
|
Tier 1: $0 – $50,000
(Individual Professionals) |
$229 / $21.08 |
|
Tier 2: $0 – $50,000
(Business / Franchise Owner – 10 or fewer employees)
|
$299 / $26.92 |
Cost of Additional Insureds for Consultants
Adding an additional insured is completely free with our consultant insurance policies.
Your policy’s coverage extends to additional insureds, such as clients, business partners, or landlords. Parties like these may require you to provide proof of insurance and add them to your policy as additional insureds, so they’re protected from mistakes arising out of your work.
For example, if a client asks to be added as an additional insured on your policy, they would be covered under your insurance if a claim arises from your work. This is especially important in contracts where clients want to be sure they’re protected from potential legal issues.
Cost of Cyber Liability Insurance for Consultants
If you store client data online, take online payments, or do other aspects of your business online, you’re at risk from hackers, malware, and more. Cyber liability insurance can help protect you from:
- Data breach notification costs
- Customer data loss
- Restoration fees
- Ransomware and cyber extortion
- Legal fees
- Business interruption costs
Cyber liability insurance is crucial if you handle sensitive information, giving you protection from potential cyber risks.
|
Monthly Premium |
$5.83 |
|
Annual Premium |
$70.00 |
|
Coverage |
$100,000 Cyber Coverage Limit
including $50,000 in E-Theft Coverage |
Tools and Equipment Insurance Costs for Consultants
Tools and equipment insurance, also known as inland marine, helps protect your business from theft or damage to the equipment you depend on.
For example, if someone steals or damages your laptop, projector, or other business tools, this coverage helps with repair or replacement costs.
|
Any one article/Aggregate |
$2,000 / $4,000 |
|
Deductible |
$250 |
Workers Compensation Costs for Consultants
Workers compensation insurance protects your business if your employees get injured while working.
For example, if one of your employees gets hurt on the job, workers compensation can cover their medical bills, lost wages, and rehabilitation costs. It can also help protect you from potential lawsuits related to workplace injuries.
The cost of workers compensation insurance depends on factors like how many employees you have, the kind of work they do, and the level of risk involved in their job.
Because workers compensation laws differ from state to state, your coverage limit depends on your state’s specific statutory requirements.
Employers’ Liability Coverage Limits
The maximum coverage for damages resulting from bodily injury by disease for any number of employees.
$1,000,000 Policy Limit
The maximum coverage for bodily injury to one or more employees in any one accident.
$1,000,000 Each Accident
The maximum coverage for damages resulting from bodily injury by disease for any number of employees.
$1,000,000 Each Employee
Factors Affecting Your Consultant Liability Insurance Costs
Your monthly or annual cost for consultant insurance is determined by a number of factors:
- Business size: The bigger your business, the higher the risk overall, which can lead to higher insurance premiums. Essentially, the more employees or clients you have, the greater the potential for claims.
- Location: Higher rates can be charged in areas with higher risks, such as crime or natural disasters. Local regulations also affect pricing.
- Past claims: A history of insurance claims can raise your premiums. Insurers view past claims as a sign of higher risk for future claims.
- Level of coverage: The more coverage you need, the higher your cost.
- Extra coverage options: Add-ons like cyber liability or tools and equipment insurance can increase your insurance costs. These extra policies protect against specific risks that your business might face.
Choosing the right types and levels of coverage allows you to protect your business without overpaying.
Tips for Saving on Consultant Liability Insurance
To keep your consultant insurance cost low while staying protected:
- Clearly define the scope of work: Use detailed contracts to outline the exact services you’ll provide and the limits of your responsibilities. This reduces the likelihood of disputes and claims, which can lead to higher premiums.
- Combine policies and choose annual payments: Bundling coverages like general and professional liability insurance can reduce your insurance cost vs. having separate policies. With Insurance Canopy, you also receive a discount for paying annually.
- Choose the right coverage: Not every consultant needs all types of insurance. For example, if you don’t have employees, you don’t need workers compensation coverage.
- Leverage your expertise: Insurers sometimes view niche consultants as less risky because their focused expertise leads to better outcomes and fewer claims.
- Update risk management practices: Use secure tools for data sharing and payment processing, keep clear documentation of all client interactions, and maintain frequent communication with clients to avoid misunderstandings, mistakes, and mishaps.
Other Consultant Professions We Insure
HR Consultants
Recruiters
Energy Healers
HR Consultants
Recruiters
Energy Healers
Get Instantly Insured Online with Insurance Canopy!
Ready to secure top-tier coverage for your consulting business? No complicated terms, no hidden fees — just reliable protection and great rates. Get covered today and keep your consulting practice running smoothly with Insurance Canopy!
Allison Kirschbaum | Copywriter
Digital Content Specialist, Allison Kirschbaum leverages her experience in providing in-depth content such as blogs, whitepapers, and downloadables about insurance, liability, and the challenges small businesses face every day. Before working at Veracity, Allison freelanced her copywriting skills, including optimizing rankings and generating leads across various sectors. She is now fully trained on Insurance Canopy’s products and helps small business owners navigate their insurance needs.
Digital Content Specialist, Allison Kirschbaum leverages her experience in providing in-depth content such as blogs, whitepapers, and downloadables about insurance, liability, and the challenges small businesses face every day. Before working at Veracity, Allison freelanced her copywriting skills, including optimizing rankings and generating leads across various sectors. She is now fully trained on Insurance Canopy’s products and helps small business owners navigate their insurance needs.
JoAnne Hammer | Program Manager
JoAnne Hammer is the Program Manager for Insurance Canopy. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
JoAnne Hammer is the Program Manager for Insurance Canopy. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
