{"id":82,"date":"2019-05-02T16:54:50","date_gmt":"2019-05-02T11:24:50","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=82"},"modified":"2021-07-07T18:39:52","modified_gmt":"2021-07-07T13:09:52","slug":"insurance-for-individual-consultants-and-why-they-need-it","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/","title":{"rendered":"Insurance for individual consultants and why they need it"},"content":{"rendered":"\r\n<p><span style=\"font-size: 14pt;\"><em>\u201cI will sue you\u201d<\/em>is a common line people use these days. It may sound frightening. Individual contractors like doctors, accountants, lawyers, tutors, and real estate agents, among others, are at the risk of getting sued and held legally liable for damages occurred. A breach of contract, leakage of confidential information, an issue related to intellectual copyright or failure to provide the contracted services might lead third parties to sue professionals.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Better be prepared than sorry later. There are a number of insurance plans that are suitable and can be aligned to individual consultants. In this article, we will discuss the types of insurance for individual consultants and why should they consider buying these insurances.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Here are some reasons why an individual contractor needs insurance:<\/span><\/p>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a062b0f2cefc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a062b0f2cefc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Protection_for_yourself_and_your_business\" title=\"Protection for yourself and your business\">Protection for yourself and your business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#It_may_win_you_contracts\" title=\"It may win you contracts\">It may win you contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#It_can_benefit_your_employees\" title=\"It can benefit your employees\">It can benefit your employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Professional_Indemnity_Insurance_PI_Insurance\" title=\"Professional Indemnity Insurance (PI Insurance)\">Professional Indemnity Insurance (PI Insurance)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Commercial_General_Liability_Insurance_CGL_Insurance\" title=\"Commercial General Liability Insurance (CGL Insurance)\">Commercial General Liability Insurance (CGL Insurance)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Workers_Compensation\" title=\"Worker\u2019s Compensation\">Worker\u2019s Compensation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Keyman_Insurance\" title=\"Keyman Insurance\">Keyman Insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.plancover.com\/insurance\/insurance-for-individual-consultants-and-why-they-need-it\/#Wrapping_up%E2%80%A6\" title=\"Wrapping up\u2026\">Wrapping up\u2026<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Protection_for_yourself_and_your_business\"><\/span><strong>Protection for yourself and your business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Working independently or as a consultant brings numerous opportunities. But it has its pros and cons. It also exposes an individual to risks that one might not have to deal with when working as an employee at a company. Imagine a laptop being stolen or a client suing the consultant due to failure of delivering services on time. Legal liability exposures with independent contractors are quite high. All kinds of losses including damaged customer\u2019s property, infringement of intellectual property, copyright breach, and bodily harm can lead to a lawsuit. That is why it is essential to have proper insurance, to have financial coverage at the time it is needed.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"It_may_win_you_contracts\"><\/span><strong>It may win you contracts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">A number of clients might want to know if you have the basic insurances in place only to gain confidence in your ability and to be sure that you would be able to deliver. In such cases, having insurance policies in place might win you contracts. Moreover, independent contractor\u2019s financial stability depends upon steady contracts. If you keep losing opportunities because of the fact that you don\u2019t have insurance, then that can affect your income. To gain your client\u2019s interest, you could have insurance coverage for damages that might happen in the foreseeable future.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"It_can_benefit_your_employees\"><\/span><strong>It can benefit your employees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">If individual consultants have employees or assistants, it makes it even more important to have insurance. Imagine your assistant meets with an accident while at work and suffers harm, then you as an employer could be liable to pay for the damages. But having insurance can cover your expenses.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Not all insurance plans might be suitable to individual contractors. So let\u2019s look at the <strong>types of insurance <\/strong>that an independent contractor should buy.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">The decision to start something on your own or work as an individual consultant is a big one. There is a lot at stake. Finances, reputation, any investments in equipment and risks related to each industry. There is a wide range of possibilities that could threaten the individual&#8217;s growth and lead to losses and unforeseen expenses. At times from legal claims. While independent contractors may not be able to cover themselves from all kinds of business risks, there are ways to cover losses and expenses. Primarily, the precaution starts from getting the right type of insurance.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Here are some insurances for individual consultants:<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_Indemnity_Insurance_PI_Insurance\"><\/span><strong>Professional Indemnity Insurance <\/strong>(PI Insurance)<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">To all the professional advisors, psychologists and consultants out there, the first thing to do is get covered with professional indemnity insurance. People who provide services can face a direct lawsuit if the clients suffer losses because of their services. At times, clients could claim that they suffered financial losses due to your services or products. Many professions such as medical services, therapy, among others, make PI insurance mandatory.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">IT service providers, designers, writers, doctors, gym instructors, among others could suffer severely from losses or expenditures arising from legal claims. What are the expenses that PI Insurance can cover? Expenses arising from settlement and judgment charges, court, legal representation expenses and lawyers fees, as well.<\/span><\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignleft is-resized\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-84\" src=\"https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280-1024x680.jpg\" alt=\"\" width=\"512\" height=\"340\" srcset=\"https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280-1024x680.jpg 1024w, https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280-300x199.jpg 300w, https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280-768x510.jpg 768w, https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280-900x600.jpg 900w, https:\/\/www.plancover.com\/insurance\/wp-content\/uploads\/2019\/05\/ux-787980_1280.jpg 1280w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Commercial_General_Liability_Insurance_CGL_Insurance\"><\/span><strong>Commercial General Liability Insurance (CGL Insurance)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">At times the products or services that a contractor provides may cause bodily injury or property damage to a third party &#8211; customers, vendors, suppliers or non-employees. If a contractor has assistants or employees, they too could lead to causing bodily harm or property damage to third parties. In such situations, CGL insurance could provide coverage and lower the burden of expenses and losses for the consultant. CGL covers both the legal costs and settlement costs for the damages caused. In a nutshell, it protects your business from monetary losses occurring due to legal liabilities from third parties, such as customers or vendors.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Workers_Compensation\"><\/span><strong>Worker\u2019s Compensation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">If you have employees working for your business, you will need to have the worker\u2019s compensation insurance. If an employee gets injured or a sudden demise takes place due to the company&#8217;s working situation the business itself will be liable for the losses. The worker\u2019s compensation will help you cover their remuneration, medical expenses, and rehabilitation costs.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">One of the critical factors to keep in mind is if the employee is under the clause of labor hire agreement with the business, then the losses will be borne by the labor agency. The company is not their direct employer. In that case, the labor agency should necessarily have insurance.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keyman_Insurance\"><\/span><strong>Keyman Insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">In the Keyman Insurance, the proposer and the premium payer is the employer. The insurance coverage is for the employee &#8211; the keyman of the business &#8211; but the benefit goes to the employer. Synonymous to the name, this insurance is purchased by employers to safeguard a key employee, one who has significant contribution to the business and one who could hamper the business if injured or in absence. For those people who work independently and have assistants or one or two key employees, this insurance is a must.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wrapping_up%E2%80%A6\"><\/span><strong><em>Wrapping up\u2026<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">In conclusion, the type of insurance you should own depends on the nature and kind of the industry you are dealing with. Apart from the above, certain contractors could need cyber insurance or property insurance, too. It is essential for you to connect with a professional and understand all the legal risks that you can get exposed to.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Visit PlanCover\u2019s <a href=\"https:\/\/www.plancover.com\/\">website<\/a> to get a clear picture of the kind of insurance your business should get and decide for yourself. PlanCover provides you with a wide range of insurance plans which will protect you from every type of business risks.<\/span><\/p>\r\n\r\n\r\n","protected":false},"excerpt":{"rendered":"<p>\u201cI will sue you\u201dis a common line people use these days. It may sound frightening. Individual contractors like doctors, accountants, lawyers, tutors, and real estate agents, among others, are at&#8230;<\/p>\n","protected":false},"author":2,"featured_media":83,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[10,9,8],"tags":[2],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/82"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=82"}],"version-history":[{"count":4,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/82\/revisions"}],"predecessor-version":[{"id":557,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/82\/revisions\/557"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/83"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=82"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=82"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=82"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}