Fundraising Consulting Business Insurance
Getting insurance for your fundraising consulting business is essential.
Fundraising consulting businesses need to be protected against potential liabilities like auto accidents involving company vehicles or professional malpractice claims.
For example, a client could sue your company for providing negligent advice, or one of your employees could cause an accident in a company vehicle.
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 Fundraising Consulting Business
General liability insurance is — generally speaking — one of the most important insurance policies for fundraising consulting businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Although general liability is vital to protect your fundraising consulting business, there are other important policies to buy as well, including:
- Commercial property insurance for your equipment and office buildings
- Business interruption insurance in case your business unexpectedly shuts down
- Workers’ compensation insurance if you have any employees
- Commercial umbrella insurance to extend the coverage of your other policies
- Commercial auto insurance if you have business-related vehicles
You are generally presented with options when it comes to choosing a business insurance provider. These are:
- Traditional brick-and-mortar insurers — For example, The Hartford, Hiscox, and Nationwide.
- Online insurers — For example, Next and Tivly.
Each of these types of companies has a different business model. We typically recommend online insurers for small businesses because they use AI to sell policies online, and thus they have lower overhead while still providing quality coverage.
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Cost of General Liability Insurance
On average, fundraising consulting businesses 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 fundraising 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.
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Common Situations That General Liability Insurance May Cover for a Fundraising Consulting Business
Example 1: A potential investor arrives early for a meeting in your office — just after your cleaner finishes mopping. The investor slips on the wet floor in your lobby, breaks a wrist in the resulting fall, and asks you to pay for her medical treatment. General liability insurance would cover her medical bills.
Example 2: As you accept an order of office supplies, your loading dock door slams into the delivery van and renders it inoperable. The delivery company threatens to sue your business for damages. General liability insurance would cover your legal fees and any required settlement.
Example 3: A recent hailstorm washed out some asphalt in your parking lot. A regular client fails to see the hole and falls into it on her way into a meeting, fracturing her wrist. She sues your business, asking you to pay her medical bills and additional damages. General liability insurance would cover your legal fees and any required settlement.
Other Types of Coverage Fundraising 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
If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. 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 workplace accident.
Professional Liability Insurance
While you strive to provide sound advice to your clients, there’s always a chance someone might claim your professional guidance and recommendations harmed their business. If a client sues your business, claiming you made a mistake or failed to perform as promised, professional liability insurance would cover your legal fees and any required settlement.
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.
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 fundraising 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.
Fundraising 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.
We always recommend that you secure the right business insurance for your fundraising consulting business before opening up shop. You need financial protection from the outset against all the common risks it is likely to face.
It’s also not uncommon for states to require businesses to carry certain policies depending on their situation and state.
Not necessarily. Certain exceptions may be written directly into your fundraising 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.