Insurance for consultants and advisory businesses

List advisory, implementation, training, design or other services separately. Explain whether the business makes recommendations, controls a process or delivers a finished product. Identify work performed by subcontractors and any services you plan to add.

Provide a representative statement of work without confidential client material. A precise service description helps the insurer evaluate the exposure. The broad label consultant can conceal important differences between business-process advice and highly specialized professional work.

A client alleging financial harm from your advice raises a different insurance question from a visitor alleging injury at your office. Professional liability, also called errors and omissions, may address covered allegations arising from professional services; general liability has a different scope.

Ask how the proposed professional policy defines your services, treats defense costs and applies any deductible or retention. Review contractual guarantees and unusual obligations rather than assuming the policy insures every promise made to a customer.

Professional liability may use claims-made terms, so prior coverage, retroactive dates and reporting requirements can matter when changing policies. Share the current policy and any relevant notices with the broker before cancelling or allowing coverage to lapse.

Provide the client's actual insurance requirements and required legal names. A certificate is not a substitute for reviewing the policy's scope or an endorsement request. Ask what remains outstanding before representing that a contract's insurance conditions have been met.

Describe the client information you hold, systems you access and security practices you maintain. Ask how professional-services allegations differ from a cyber incident and whether the proposed policies overlap or leave a question unresolved. Do not assume a professional liability label includes a complete cyber response.

Review laptops, office equipment and work performed from home or a rented office. If you travel to client sites or use rented vehicles, include those activities in the discussion. Keep the initial web inquiry brief; sensitive client information and full contracts should be provided through an appropriate arranged channel.

• Specific services, deliverables and representative contract requirements.
• Revenue, client industries, subcontractors and operating locations.
• Current professional policy, dates and relevant prior coverage.
• Data access, security practices, equipment and business travel.