Consultant Insurance2019-12-02T16:11:19-05:00

Consultant Insurance

Every consultant who offers professional advice or services should consider Consultant Insurance. Protect your consulting practice against claims of negligence, errors or omissions.

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Consultant Insurance

Hi, I’m Harry from Zensurance, and I’m here to talk to you about something very important, insurance coverage for Canadian consultants. 

We’ll quickly go over what this insurance coverage is, what it covers, and typically how much it costs. 

If you’re a consultant in Canada, you’ve probably wondered if you need insurance, and you’re not alone. Every single day at Zensurance, we get hundreds of inquiries, from Management Consultants to Health and Safety Consultants, and everything in between. 

As a Consultant, you provide important services and advice to businesses in different industries, and sometimes this advice can lead to undesired results. Allegations of errors or professional negligence that have stemmed from a client suffering a financial loss could result in legal action against you and very high defense costs. Even worse, it could mean having to close down your business.

Now, what exactly does this insurance cover? 

Well, in short, it protects you against the main exposure your business faces on a daily basis. The most basic package includes: 

  • Professional Liability, also known as Errors and Omissions coverage, which will protect you if your advice results in a financial loss to your client. 
  • Commercial General Liability, which is a safeguard against injuries or property damage to third parties. 

Additionally, our clients often supplement these two coverage options with Cyber Liability and Legal Expense. 

So, now we know what this insurance covers, but much does it cost?

Well, it varies based on the industry you serve, your revenue, and the years of experience. To find out how much your insurance coverage will cost, visit us at www.zensurance.com and click ‘Get A Quote.’ 

From there, type in a few words that best describe your business, answer a few questions, and that’s it. Based on the information you provide, we’ll recommend the best policy and give you a price estimate. In case additional information is required, a Zensurance broker will happily assist. It’s that easy, and it’s that simple. 

If you have more questions about Consultant Insurance coverage in Canada, reach out to us: 

  • You can go to the chat function on our website;
  • Send us an email at info@zensurance.com; or
  • Call our Canadian toll free number: 1-866-654-6030.

What is Consultant Insurance?

Consultant Insurance coverage protects consultants against allegations of negligence or claims of financial loss through an errors & omissions coverage or a professional liability coverage. In case of alleged negligence resulting in bodily harm or property damage a commercial general liability insurance will provide coverage.

What does Consultant Insurance cover?

What does Consultant Insurance cover?

When requesting a Consultant Insurance policy package, make sure it covers:

  • Accidental injuries to customers or suppliers while visiting your office
  • Off-site injuries or property damage caused by yourself or an employee (e.g., while visiting a customer)
  • Damages caused by errors you commit (“errors & omissions insurance”)
  • Loss of information in case you are an IT consultant or you use networks and cloud based systems (“cyber liability insurance“)
What is the cost of Consultant Insurance?

Who needs Consultant Insurance?

By definition, any person or agency who offers professional advice or guidance for a fee is a consultant by definition.
If this is your case, you might be held liable for advice that results in any form of damage or doesn’t yield the promised results.

The following are the typical fields where consultants operate:

  • Business Management
  • Business Operations
  • Marketing and Advertising
  • Engineering
  • Construction
  • Technology and Business Systems
  • HR or recruiting
  • Web development or design

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

Getting consultant insurance will have you covered and allow you to focus stress-free on running your practice.

What is the cost of Consultant Insurance?

What is the cost of Consultant Insurance?

The cost of a consultant insurance policy varies according to factors such as:

  • Industry
  • Level of experience in the industry
  • Revenue

It also depends on the nature of your work and the size of your particular business, but generally speaking, here is a breakdown of costs:

  • Business Consultants start at $400
  • Engineers start around $1000
  • Software developers start at $500
  • Photographers start at $300

Get a free consultant insurance quote right here.

Getting insured is quick and easy!

If an E&O insurance is what you need, request a free quote now

Which professions require Consultant Insurance

Regardless of the type of consulting business you run, consultant insurance is critical:

  • Accountants

  • Accounting Firm

  • Actuaries

  • Advertising

  • Aerial and ground based Photographers / Videographers

  • Architects & Engineers

  • Appraisers

  • Bookkeepers

  • Building Designers (Bill 124)

  • Business Consultant

  • Civil Engineers

  • Collection Agencies

  • Design Firms

  • Employment Agencies/Recruiters

  • Engineers

  • Environmental Engineers

  • Financial Advisors

  • Financial Planners

  • Foreign Legal Consultants

  • Home Inspectors

  • Human Resources (HR) Consultant

  • Immigration Consultants

  • Information Technology & Computer Consultants

  • Interior Designers

  • IT Contractor

  • IT Specialist/Technician/Programmer

  • Independent Contractor

  • Product Designers

  • Lawyers

  • Management Consultants

  • Multimedia designers

  • Mortgage Brokers

  • Quality Control Consultants

  • Placement Agencies

  • Private Investigators

  • Project Managers

  • Property Managers

  • Paralegals

  • Publishers and Printers

  • Recruitment and Employment Agencies

  • Recruitment Consultants

  • Safety Engineers

  • Service Organizations

  • Solar & Wind Farm Engineers & Consultants

  • Staffing Agencies

  • Structural Engineers

  • Surveyors

  • Training Providers/Trainers

  • Travel Agencies

  • Travel Agents, Tour operators

  • Web-Site Designers

Common scenarios where Consultant Insurance is useful

Consultant Liability Insurance

You design a customer database for a client and a bug erases some of the client data. The company sues you arguing that you caused a loss of $300,000 CAD. An Errors & Omissions policy would provide coverage of the alleged amount as well as your legal fees.

Marketing Consultant Insurance

You are helping a client with a marketing campaign and in an email exchange you inadvertently state that sales will increase by 10% as a result. Sales actually decline by 2% after the campaign launches and your client sues you. A professional liability policy would protect you in that case.

Architect Consultant Insurance

You help a home owner with the design plans for a new deck. A year later, when the deck is finished the client’s lawyer sends you a letter suing you for a flawed design that caused the deck to sink. Even if it wasn’t your fault, your legal fees could be covered by the right professional liability insurance.

Frequently Asked Questions about Consultant Insurance

Is Consultant Insurance mandatory for consultants and independent contractors?2019-06-10T15:18:09-04:00

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?2019-06-10T15:19:01-04:00

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?2019-06-10T15:20:12-04:00

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.

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