Energy Consulting Company Insurance
Getting insurance for your energy consulting business is essential.
Energy consulting businesses need to be protected from a variety of risks, such as professional malpractice and breach of contract claims.
For example, a client could claim your firm negligently offered them bad advice that resulted in damages, or your firm could be the victim of a cyberattack.
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 an Energy Consulting Company
General liability insurance is — generally speaking — one of the most important insurance policies for energy 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
In addition to general liability insurance, other types of business insurance can benefit your energy consulting business:
- Workers’ compensation insurance
- Commercial auto insurance
- Commercial property insurance
- Professional liability insurance
Generally speaking, business insurance companies are either online or traditional. Each has advantages and disadvantages.
- Online insurers — In this category, we find insurance companies that only have a web presence and sell insurance online using AI. They don’t employ insurance agents or need to maintain physical branches, and thus they’re agile and have relatively low overhead. This means purchasing insurance from an online provider is cheaper and faster than from a traditional provider.
- Traditional insurers — Traditional insurers include many large companies like Allstate and The Hartford that most people have heard of. They offer good insurance and are a safe choice, but you’ll pay more for the same coverage and wait longer for it. We therefore recommend online insurers for most small businesses.
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Cost of General Liability Insurance
On average, energy consulting companies in America spend between $500 - $1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an energy consulting company 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 an Energy Consulting Company
Example 1: While touring a client’s business, you accidentally trip over a cable, fall into a wall of computer equipment, and cause the equipment to crash onto the floor. General liability insurance would pay to replace the client’s damaged property.
Example 2: One of your competitors sues your business for libel. While you disagree with the accusation, you want to hire an attorney to protect your company. General liability insurance would cover your legal defense costs.
Example 3: During a visit to your place of business, a client slips on some wet tiling in your restroom, breaks an arm in the resulting fall, and decides to sue. General liability insurance would pay for your legal fees and any required settlement.
Other Types of Coverage Energy Consulting Companies 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:
Professional Liability Insurance
While you strive to do your best for every client, there’s always a chance someone might claim your advice caused them harm. If a client sues your business, claiming you made a mistake, professional liability insurance would cover your legal fees and any required settlement.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business materials you carry in your vehicle.
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.
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 energy consulting company:
- 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.
Energy Consulting Company 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. Adequate business insurance for your energy consulting company will protect you from a variety of financial risks inherent in this industry, including professional malpractice lawsuits.
You also may be required by your state to purchase certain types of insurance, such as commercial auto if you drive a company vehicle or workers’ compensation if you have employees.
Not necessarily. Certain exceptions may be written directly into your energy consulting company 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.