Consultants have specialized expertise that makes them incredibly valuable to organizations that need advice and strategic thinking on a specific industry, topic or project. Because they provide important feedback on matters that can have a major impact on a company's success—or lack thereof—consultants are vulnerable to allegations and related litigation that can cause them huge financial setbacks. The experienced insurance brokers at Morison Insurance can help you get the financial protection you need to thrive in your career with the right insurance for consultants in Ontario.
Ontario business consultant insurance is essentially a type of business insurance that is tailored to the needs of those who provide consulting services and to the specific insurance requirements of the individual policyholder. The purpose of consultant insurance is to protect consultants against the major financial losses that can result from issues such as lawsuits or disasters that cause damage to their business property and its contents. In the event of an insured peril, consultant insurance carriers provide funds to cover costs such as legal expenses, medical bills, property restoration and more, according to the terms of the consultant insurance policy, which typically includes various types of liability coverage along with property coverage.
Ontario consultants who make a living providing professional services or advice need the financial protection that is afforded by the right insurance for consultants. That includes consulting professionals across a wide range of industries and professions, including:
Of course, this list is far from exhaustive as there are hundreds, if not thousands, of types of professionals out there who are offering professional advice and services. If you're not sure whether Ontario consultant insurance is right for you, speak with the friendly brokers at Morison Insurance and give them some information on your career so they can find the right insurance coverage for your unique requirements.
Like most types of commercial insurance coverage, except for commercial auto insurance, insurance for consultants is not legally required by the government. So in that sense, it is not mandatory to have consultant insurance. Ontario insurance experts will tell you, however, that it's still very much necessary to protect your business and even your personal finances from financial ruin so you're able to acquire new clients and sign other contracts, such as lease agreements.
The simple answer is yes. Business consultants handle many vital documents and have many files and folders that could contain confidential or sensitive information about their clients. This opens you up to many possible risks if you're not covered with the right insurance coverage. Even a single important file being seen by the wrong person could lead to a financial loss or cause clients to take their business elsewhere. The expert brokers at Morison Insurance can help find you the coverage that fits your specific needs. Here are a few of the major reasons why it's necessary to have the right insurance for consultants.
Most business professionals, regardless of how successful they are, don't have the space available in their budget to soak major expenses like the cost of litigation and liability settlements without suffering stressful financial setbacks that could affect their business for years to come. It's all too common for people to think to themselves, "I'll just be extra careful," or "I have a great relationship with my clients, they would never sue me." But realistically, you can't avoid every single mistake or oversight that could result in legal action being brought against you in court, and the costs associated with a lawsuit can be financially overwhelming without the support of consultant insurance compensation.
Furthermore, there is always the potential for a completely unavoidable disaster that causes severe property damage, and no one wants to deal with the unexpected expenses of building restoration and replacement for all their business items, especially while trying to keep up with financial obligations while being unable to bring in revenue. It doesn't make sense to put yourself through the stress of major financial strain when you can have the protection afforded by Ontario consultant insurance at a reasonable cost.
The other big reason why Ontario consultant insurance is so necessary is that most clients and companies that may hire you will require proof of adequate coverage via an updated certificate of insurance before they will sign a contract to bring you on as a consultant. If you can't provide that proof because you don't have the right consultant insurance coverage, you'll be forced to abandon lucrative contracts that will go to your competitors instead, seriously affecting your business success and compromising your ability to find and retain new clients.
If you're interested in renting or leasing a commercial office to operate your consulting business out of, you will almost certainly need a consultant insurance package to even sign a lease or rental agreement. This is because commercial property leasing companies generally require their tenants to have the right types and amounts of property insurance coverage and liability coverage. They want to make sure that, in the event that their property is damaged, or a liability situation occurs on the property, you will have access to the necessary consultant insurance compensation to handle the related costs.
Every consultant insurance package is unique because no two consulting professionals operate their businesses in exactly the same way. Rather than sticking you with a one-size-fits-all policy that doesn't really fit your particular risk exposures and insurance requirements at all, our reliable brokers will start by asking you questions to learn more about your Ontario consultant insurance needs. They'll then search for the right coverage for you specifically so you can rest assured that you have the protection against financial losses that you need. There are some types of coverage that are standard because pretty much everyone with a commercial policy needs them, such as commercial general liability and commercial property insurance. There are also coverages that are highly recommended for consultant insurance, such as professional liability. Here are a few of the types of business insurance coverage that are well worth knowing about when you're considering what you need on your Ontario consultant insurance policy.
A professional liability insurance policy, which is also known as errors and omissions insurance (E&O insurance) or professional indemnity insurance, depending on the type of profession it is being applied to, is a critically important form of liability coverage for consultants of all kinds. It protects against the cost of litigation related to claims of negligence, bad advice and errors that cause some type of harm to a client, whether it's financial, contractual or reputational harm.
For example, you are brought on to work on a specific project that requires numerous permits and applications. You forget to file a couple of key applications, causing the company to be stuck with a large fine for non-compliance and significantly delaying the project overall. The client sues you for negligence and to recoup the cost of the fine, along with their loss of income caused by the delay. In that type of situation, your consultants' professional liability insurance coverage would allow you to recover related costs such as legal mediation, legal fees, settlement costs and more, up to the limits listed on your policy. There's no doubt that the cost of consultant professional liability insurance is well worth it for the crucial protection it provides against major financial setbacks.
Most kinds of businesses or professionals need CGL insurance, and that naturally includes consultants. Commercial general liability covers third-party bodily injury or third-party property damage that you are accused of causing or have been found liable for but aren't directly related to the services or advice you provide to your clients.
Commercial general liability coverage on your consultant insurance covers expenses such as legal defence fees, settlement costs, medical bills, building restoration and replacement for damaged items in the event of third-party bodily injury, third-party property damage, or in some cases, advertising injury. An example of a commercial general liability claim is if a client came to see you at your home office and slipped on a patch of ice on your walkway, breaking their ankle, they could bring legal action against you for the cost of their medical care as well as lost income if they were unable to perform their work duties while recovering from their injury. CGL coverage would apply to litigation expenses, including settlements should you be found liable in a court of law.
If you work out of a commercial office space, then it stands to reason that you need commercial property insurance so you can get insurance compensation for building restoration and replacement costs should your building or its contents be damaged by an insured peril such as a fire or natural disaster. But many consultants work from home and assume they don't need commercial property insurance because their house is already covered by homeowners insurance. This is not the case.
If your house was damaged by a fire that started in the kitchen while you were cooking dinner for your family, for example, then your home insurance policy would apply to the damage that was caused. However, if the same fire damages your work laptop and work-related files or other assets you use specifically for business purposes, they would not be covered under the contents portion of your homeowners insurance, and you would need commercial property insurance in place to receive the funds necessary to replace or repair those items. Conversely, if the fire was somehow started when you were engaged in a business activity for commercial purposes, such as creating an instructional cooking video for a client, your home insurance may not apply at all even though the fire occurred in your home. That's why it's important to have the necessary commercial property insurance coverage that is designed to give you financial protection no matter where you do your work.
If the worst happens and your commercial property and/or equipment is damaged or destroyed entirely, the costs of restoration, repair and replacement will fall under the commercial property coverage on your consultant insurance. But the process of restoring a building after a destructive event such as a fire, not to mention replacing equipment and important documents, doesn't happen overnight. While you're waiting for your commercial space to be usable again, you'll have to deal with ongoing expenses without being able to generate as much or any income. With business interruption coverage as part of consultant insurance, Ontario consultants can get insurance compensation for income losses that occur as the result of an insured peril. That can include coverage for a temporary workspace, payroll costs, taxes, loan payments and more.
Most types of business are conducted using connectivity and computers in our modern world. As a consultant, you likely count on them to send, receive and store sensitive information such as clients' financial details, identity documents and possibly even valuable business secrets. While your files and documents may seem like they're securely protected, the truth is that there are dedicated criminals out there who are constantly working on new ways to hijack that sensitive information and use it to demand ransom payments or commit fraud and theft against your clients. If that information is stolen while in your care, you'll be at risk of lengthy litigation and the high costs associated with lawsuits if you don't have cyber liability insurance included with your consultant insurance policy.
Cyber insurance coverage is an addition to your consultant insurance package that protects you if you are the victim of a cyber attack and someone makes a cyber liability claim against you, by giving you financial assistance to pay your legal expenses and recover financial losses such as payments for ransomed information.
Some professions are at a greater risk of being held liable for causing financial losses than others. Because consultants specialize in providing professional advice and consulting services, they are more likely to have legal action brought against them and potentially be ordered by the court to pay a large settlement. As a result, it's typically a good idea to include commercial umbrella insurance in a package of consultant insurance. Ontario brokers recommend umbrella coverage to consultants because it increases liability coverage limits for multiple types of liability insurance, including professional liability insurance and your commercial general liability policy. Defending yourself against a lawsuit, even if you are found not liable, is expensive and typical liability limits aren't always enough to ensure you won't have to pay any costs out of pocket. With commercial umbrella insurance, you can increase limits and feel assured that you have adequate coverage should you be sued.
This is a common misconception about Ontario consultant insurance. Some consultants assume that because their clients sign approval forms for their work before it is published or put into practice, that means they can't be held professionally liable for issues such as errors, omissions, oversights, bad advice and negligence, but unfortunately, that's not the case. Approvals do not protect you against being sued for all of the above and more, so you can still be forced to deal with the eye-watering expenses associated with legal mediation, legal defence in court and liability settlements that can easily exceed hundreds of thousands of dollars.
Professional liability insurance and errors and omissions insurance are basically two names for the same type of insurance coverage. You don't need two separate policies with these coverages, because that would essentially mean you were doubly covered for the same liability perils, such as lawsuits that allege you are responsible for professional negligence or giving bad advice.
While professional liability insurance is an extremely important type of coverage when it comes to consultant insurance, Ontario consultants aren't always aware that there are different options available. Consultant professional liability insurance policies can be either occurrence or claims-made, and one of them may be better suited for your consultant insurance needs than the other, depending on your particular circumstances.
Occurrence policies apply to incidents that occurred while the policy was in effect. That means if you have legal action brought against you for something that allegedly happened during your policy period, even if your policy is not currently active at the time when you are sued, you can expect to receive consultant insurance compensation to cover your legal and settlement costs up to the limit on your policy.
Claims-made policies, on the other hand, offer coverage for incidents that occurred when the policy was not active, as well as during the period of time when the policy is active. For example, if you were operating your consultancy without professional liability coverage and then decided to add it to your consultant insurance package, only to be hit with a lawsuit for something that allegedly occurred before you purchased your claims-made professional liability insurance, your resulting legal and settlement expenses would be covered up to your policy limit. It's worth noting, however, that your claims-made consultant insurance has to already be in place when the lawsuit is filed against you.
The distinction between occurrence and claims-made liability policies may not seem all that significant, but it can mean the difference between paying out of pocket for liability costs or having the financial protection afforded by the liability portion of your consultant insurance. Ontario brokers at Morison Insurance will review your circumstances carefully and advise you on the best option for your consultant insurance package.
Yes, it is possible for some types of consultant insurance coverage to be bundled, depending on the insurance provider. A common commercial insurance bundle is a commercial general liability insurance policy, business interruption coverage and commercial property insurance, but other coverages may be able to be bundled as well. Bundling insurance coverages is typically a good option as insurance providers will often offer a bundle discount on premium costs, and you have the convenience of all the coverages being together on one renewal schedule. When you speak to a broker at Morison Insurance about insurance for consultants, we can inform you about any opportunities for bundling coverage that may be beneficial to you.
That's simple—get in touch with the commercial insurance experts at Morison Insurance by calling 1-800-463-8074. We have the consultant insurance expertise to seek out the right Ontario consultant insurance coverage to address your unique insurance requirements so you know you're financially protected against the perils that are most likely to befall you. At Morison Insurance, we don't work for the insurance companies; we work for you. That means your best interests are our top priority. Our brokers work tirelessly to find the best insurance for consultants, and we have the experience and skill to understand your industry and the coverage consultants need.
