Setting Up Your Consulting Practice

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Topic: Setting Up Business Insurance

There are several types of business insurance to consider for your consulting practice, depending on the types of services you provide and whether you hire staff.

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Finding a business insurance broker for your virtual team. Now, you may be willing to self insure and just run without insurance for a while, and some people do that. I frankly did that for a couple of years when I first started, but eventually, you’re going to run into a client where with their terms and conditions they require you to carry insurance, and then you’re going to be scrambling to go try to find a policy, and the lead time can actually be three or four weeks to find a policy and get it bound.

So, I recommend that you talk to a business insurance broker. That broker should spend some time understanding your particular practice and be providing advice to you about what types of insurance you want to get because there’s not just one type of policy, there’s general liability insurance, for slips and falls, but there’s also professional liability insurance, there’s cyber insurance, there’s workers’ comp insurance. There’s a whole variety of other ones.

In the show notes for this episode, we have a list of types of policies that you might consider getting, that Dorene provided to me. But you don’t necessarily need all of them and a good broker will advise you on what level of coverage you ought to get. When you get into this, you should expect it’s going to take three to four weeks to go through the whole process of talking to the broker. The broker will go out to multiple carriers to get the best quote for your business, and then for you to decide and get it bound.  So start the process early, before you run into a situation where you want to start work with a client and they’re requiring you to get a policy.

A good broker will also provide service over the years. you’ll often… Individual clients will ask you for a Certificate of Insurance, and a broker will do that as just part of their fee. You don’t actually pay the broker directly. When you pay the insurance company, they pay a portion of that back to the broker as a commission, but you wouldn’t really save money going directly to the insurance carrier because by law they’re going to offer you the same price whether you get a broker or not, so you might as well get the help.