Project Management Consulting Business Insurance
Getting insurance for your project management consulting business is essential.
Project management consulting businesses need to be protected against things like claims of contractual breach, professional negligence, and confidentiality breaches.
For example, your business shares confidential information regarding its clients without permission, or a client claims that one of your consultant’s gave advice that led to financial loss.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Project Management Consulting Business
General liability insurance is — generally speaking — one of the most important insurance policies for project management consulting.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
If you want to bolster your project management consulting business’s protection with additional coverage, you may want to look at a few of the following policies:
- Workers’ compensation insurance: Enables your employees to enjoy compensation for their lost wages and medical bill if they suffer a work-related illness or injury.
- Professional liability insurance: Takes care of any legal costs or settlements associated with any negligence or malpractice lawsuits filed against your business.
- Data breach insurance: Protects your business in the event that a client’s sensitive financial information is exposed during a cyberattack.
As you attempt to solve the problem of which insurance provider to go with, you’ll notice that there are two general types:
- Traditional brick-and-mortar insurers — e.g., The Hartford, Nationwide, and Hiscox.
- Online insurers — e.g., Next and Tivly.
While traditional insurers usually take the spotlight, a growing number of small businesses are opting for online insurers because of the excellent value for money of their policies.
Let's Find the Coverage You Need
The best insurers design exactly the coverage you need at the most affordable price.
Cost of General Liability Insurance
On average, project management consultants in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a project management consulting business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Find the Best Rate
Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Project Management Consulting Business
Example 1: During a meeting in your office, a potential client accidentally knocks your awards shelf off the wall and sustains serious injuries. General liability insurance would pay for their medical bills and your legal fees in the event of a lawsuit.
Example 2: A local competitor claims you’ve stolen their logo design for your new business logo and threatens to sue. General liability insurance would cover your legal fees and any payouts awarded in a settlement.
Example 3: While moving supplies from your car into your building, you lose control of the dolly and it hits a visitor. The impact causes them to fall and break an arm. General liability coverage would pay for the visitor’s medical expenses and your legal fees if they pursue a lawsuit.
Other Types of Coverage Project Management Consulting Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Professional Liability Insurance
You help other companies make the best decisions for their business by providing the leadership and oversight they need to execute key projects. If a client decides you failed to perform or your advice caused damage to their business operations, you may face a lawsuit. Professional liability insurance provides protection for any related negligent acts and covers your legal fees in the event of a lawsuit.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Data Breach Insurance
Your clients entrust you with sensitive business and financial information. Yet, you may still face a hacking risk even after investing in the best cybersecurity systems available. Data breach insurance protects your business in the event of a cyberattack.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your project management consulting business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Project Management Consulting Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. It is crucial that you adequately protect your project management consulting business from the risks it will be exposed to with business insurance.
In addition to shielding your business from these risks, it also helps to keep it operating legitimately in situations where specific policies are obligated (e.g., workers’ compensation insurance).
Not necessarily. Certain exceptions may be written directly into your project management consulting business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.