What Insurance Do You Need As A Consultant?
No one ever talks about insurance for consultants, that's a shame.
If you’re acting as a consultant, you should have insurance.
If you don’t, not only will many large organisations refuse to work with you, but you’re exposing yourself to extraordinary risks.
Many Large Firms Won’t Hire You Without Insurance
Insurance protects clients from claims against you. Imagine you provide “bad” advice which causes a million dollars of damage.
The organisation may sue your business. But if your business only has $10k of assets, they lose even if they win.
However, if you have $2m worth of insurance, they get the money from insurance companies. It’s a win for you (you get to stay in business) and it’s a win for them (they get compensation for damages).
But even without this, you should still have insurance.
It’s not professional to be uninsured.
Doesn’t A Limited Liability Shield Protect Me?
Setting up a limited liability corporation (LLC) is step one when you become a consultant. This essentially separates you and your assets from the business and its assets. The…
