Working From Home (WFH) means one can run their business operations from their residential area, apartment, or house without going to the office. Various industries highly adopted the move in 2020 after the COVID-19 pandemic worsened.
Consultants weren’t left behind either. Several consulting businesses have shifted offices to their homes, which is equally cost and time-saving. However, you are still required to insure your WFH consulting business since risks like any other company surround it.
Owning the right home based business insurance policy for your consultation profession is as crucial as the job itself. Clients prefer to work with insured consultants to their satisfaction, whether home-based or not. There’s a list of different policies suitable for your consulting business. An insurance broker may offer guidance about choosing the best home-based insurance policy.
Below are various home-based business insurance policies you can get as a consultant:
Cyber Liability Insurance Policy
Cyber liability insurance is one policy you should consider for your consulting business. Besides a few hard copies, most consultants store their private information and that of their clients in an electronic platform like the cloud. Some also own a website where they post their usual operations and service, similar to an advertisement. Therefore, a cyber liability insurance policy will go a long way in safeguarding such details.
Although the policy doesn’t stop or prevent cyber crimes, it is responsible for recovering your lost data and other losses that would otherwise disrupt your business operations. Various coverage under the cyber liability insurance policy include:
- Third-party coverage (applicable when your client’s crucial information is leaked).
- Liability coverage (caters for damages suffered by other companies at your fault).
- Technology errors and omissions (applicable when your client suffers from cyber incidents at your fault).
Commercial Auto Insurance
Many working-from-home consultants think they don’t require commercial auto insurance since not much travelling is involved. Instead, they believe their personal auto insurance would cater for losses incurred during a work-related trip, which is nearly impossible.
If you own a business or personal vehicle on your once-in-a-while consulting business trips, it’s essential to insure it with a commercial auto insurance policy. The costs covered by commercial auto insurance include property damage, bodily injuries, defence costs, collision coverage, under or uninsured motorists, rental reimbursement, and roadside assistance.
Worker’s Compensation Insurance
If you have employees who work for your WFH consulting business, you require a worker’s compensation insurance policy regardless of whether they come to your home or not. While the companies are legally required to undertake a worker’s compensation insurance policy, it differs from nation to nation.
Consulting businesses need it for their assistants, drivers, chefs and other employees. The costs covered by worker’s compensation insurance include the medical bill for employees injured on duty, loss or damage of the employees’ property, and other related expenses.
A fidelity bond insurance policy covers losses from your employees’ infidelity through theft, unauthorized data access, mismanagement, or fraud. Most companies add this policy to their general business liability policy, while others offer it separately.
The costs covered by fidelity bond insurance include investigation costs, replacement costs, court expenses and any other reasonable expenses. However, it’s crucial to assess your potential employee’s honesty before hiring them for the sake of your business.
Professional Liability Insurance
Professional liability (errors and omissions) insurance undertakes the losses incurred due to professional negligence, inaccurate misinterpretation, poorly done work, or mistakes. For instance, your consulting client might have fallen victim to damages and losses due to the advice you offered. A professional liability insurance policy will kick in to cover the damages. Some companies combine errors and omissions with general liability insurance to provide a variety of options to their clients.
General Liability Insurance
General liability insurance is the most common policy undertaken by several consulting businesses. It covers claims placed by your clients at your fault, including property damages and bodily injuries to the clients.
The costs covered by this policy involve repair, replacement or compensation in case of property damage, medical bills and funeral expenses (where applicable), and any other reasonable charges. Some clients will always want to be on the winning side. Grab that general liability insurance policy for your business’s reputation and longevity.
Business Property and Interruption Insurance
Your home-based consulting office has furniture and other equipment required to be insured for damages and loss. They include chairs, desks, photocopiers, files, and electronics. However, you can kick off the crucial ones with a business property insurance policy.
The policy also covers losses incurred while transporting the office types of equipment. On the other side, business interruption insurance covers losses incurred from the interruption of business operations. They include machine failure, power outage, adverse weather conditions, and other reasonable conditions.