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A Management Consultant’s Guide to Errors Omissions Insurance

If you’re in the business of management consulting, you know that plenty can go wrong over the course of an engagement. Whether you actually make an error in judgment or things go awry due to events beyond your control, you’re at risk of a lawsuit if your client isn’t happy.

Errors and omissions (E&O) coverage is one way you can protect your business against the high cost of litigation, but many management consultants may not understand the difference between this type of coverage and other kinds of consultant business insurance. So, Business Insurance Now has compiled this handy reference based on some of the most common questions we receive from management consultants.

I’ve heard about professional liability insurance and errors and omissions insurance. Are they the same thing?

Yes, “errors and omissions insurance,” “E&O insurance” and “professional liability insurance” are effectively the same insurance going by different names. If one of your clients should allege that they suffered a financial loss due to an error you or one of your employees makes on the job, this type of insurance pays for your legal defense and any legitimate financial compensation for your client, along with specific other expenses as defined by the policy.

Is “general liability insurance” another name for professional liability coverage too?

No. Errors and omissions coverage covers you for errors you may make while doing your job, while general liability insurance responds to claims of bodily injury or property damage, either at your business location or your client’s.

For example, general liability insurance comes into play if a client suffers a fall while visiting your office, or if you or one of your employees accidentally injures someone or damages property at the client’s office.

Having general liability insurance can be important for business development, as many companies require both professional liability and general liability coverage in their management consulting contracts. They want to reduce their own risk by ensuring that any service provider visiting their premises is covered – that goes for business consultants as well as pest-control professionals, maintenance providers, window washers or plumbers.

Many business consultants choose to purchase general liability coverage as part of a Business Owner’s Policy, also known as a BOP. These specially priced package policies include both general liability insurance and property insurance, which is designed to protect your business property against physical loss or damage by theft or fire, for example. Your property is covered whether it’s at your own place of business or your client’s.

Because a BOP offers two types of coverage for a single combined price, buying a BOP is a cost-effective way to get the general liability coverage clients demand, plus the added benefit of property coverage, without spending much more in premiums.

But doesn’t general liability insurance already include errors and omissions coverage?

No. If a client sues you because they think you made a mistake in the course of doing your job, general liability doesn’t cover you. For that, your firm needs professional liability coverage. General liability typically excludes litigation that involves allegations of professional negligence or failure to perform professional duties, but does cover most bodily injury or property damage claims.

What does errors and omissions insurance cover?

E&O insurance is triggered when your client claims that you were negligent or made an error on the job that caused the client to suffer a financial loss. For a management consultant, this might involve:

– Improper documentation

– Improper fact verification

– Missed deadlines

– Misrepresentation of facts

– Breach of nondisclosure

– Loss of data, improper procedures or negligent handling of data

– Failure to prevent electronic theft of records and confidential information

– Employee theft and sale of client’s trade secrets

– Deliberate dissemination of false information

– Violations of state and federal law, such as violation of right to privacy

Just as important as knowing what’s covered is knowing what’s not. Professional liability coverage will pay for your legal defense and legitimate financial compensation for your client, but it won’t pay for the time and money you spend to make the problem right. And, errors and omissions insurance won’t protect you if you should get sued for something like stealing a client’s customer away. For these types of situations, you may wish to create a contract that outlines procedures for conflict resolution and clearly states your and your client’s rights.

I’ve never made a mistake that resulted in a lawsuit. Do I really need errors and omissions coverage?

It’s true that competent management consultants have a low risk of getting sued – and that’s good news. But, most business owners still decide to protect themselves with insurance. Why? Because although the odds of a lawsuit are low, the costs of a lawsuit are high.

The chance of getting sued often has less to do with the quality of your work than with your clients’ temperament and expectations. If your client relationship goes sour for any reason, you could be accused of negligence even if you didn’t make any mistakes. Remember – there are many factors beyond your control that can affect the outcome of your consulting engagement, and if your name is on the contract, you’re the one that will be held accountable.

If you feel a lawsuit has no merit, you’ll still have to pay for a legal defense to prove it. Because many management consultants are solo practitioners, there’s typically no legal team standing by or large bank account to fall back on. In such cases, professional liability insurance can help you stay in business while you fight your case in court.

What can I expect to spend on professional liability insurance?

The cost of errors and omissions insurance depends on the limits of liability and deductible you choose for your consulting firm. Your company’s location and revenues also factor into your premium calculation. Generally speaking, most one- or two-person consulting firms can get $ 1 million in E&O insurance for about $ 1,000 per year, or less than 1 percent of gross revenue for many business consultants.

If you still have questions about E&O insurance or other types of business insurance, contact a small business insurance broker and ask. There’s no cost to get a quote, and a qualified agent or broker can help you decide whether this type of insurance is a must for your business.

Jim Cochran is the Owner of Business Insurance Now, an online source for management consultant’s errors & omissions insurance. Jim has been writing liability insurance policies for over a decade and he understands the information that is crucial to purchase small business insurance.

A Complete Information Guide Regarding Travel Insurance

Travel insurance is mostly purchased by the travelers to protect them from all sorts of unforeseen medical or health problems while traveling. Travel insurance is the best way to provide coverage during injury or sickness while on a tour. Most of the times travel insurance also covers from loss arising out of luggage misplacement or loosing at the airport. Thus, travel insurance can be regarded as one of the best ways of reducing risk while increasing the enjoyments while planning for a tour.

The travelers are also advised to look out for factors like season, mode of transportation, weather and health before purchasing the travel insurance policy. On the other hand the travellers are also advised to engage in research work before selecting the final travel insurance provider. The types and the coverage provided by the travel insurance provider should be strictly taken into consideration.

The cost of the insurance policy mainly depends upon the insurance provider along with the type of travel policy been selected. Most of the travel insurance providers out there in the market provide the travellers with complete protection which also includes the family and the baggage.

Most of the companies provide the travellers with several discounts at specific times of the year which can be taken advantages of. Today most of the travel agencies work through the internet and provide the travellers with easy to purchase travel insurance policies.

Types of travel insurance:
There are different kinds of travel insurance plans out there in the insurance market and the selection of the final one mainly depends upon the needs and demands of the traveller. The travel insurance providers also arrange tailor made policies to suit the individual needs and demands of the various tourists out there in the market. Some of the most common types of travel insurance are:

Single trip travel insurance plan: This is one of the most common types of policies and protects the travel along with the whole family during the trip. The protection provided under such a plan mainly lasts not more than one trip and the traveler has to get another plan while going for the next tour.

Under the terms of this policy the traveler is entitled for a cover from some of the basic risks which include trip cancellation to medical insurances. At times the insurance provider also includes some other features in the terms and conditions of the insurance policy.

Multi trip travel insurance plan: This is an insurance plan which mostly suits the frequent travelers. At times most of the insurance provider’s pre determine the number of trips that has been included under the coverage.

Long stay travel insurance plan: This policy provides the travelers a protection which lasts for not more than 18 months. Designed mainly for the long trip goers, this plan suits the best the travelers visiting their relatives and friends.

There are several other types of travel insurances providing the travelers protection during cruises and business travel. However, for availing the benefits of any of the stated insurances policies the travelers should check out the features included.

John Goldman is a well known consultant and advisor in matters relating to Financial Planning and Debt Consolidation. Access hundreds of free resources by visiting John Goldman’s The Money Page

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A Beginners Guide to Purchasing Travel Insurance

If you are planning on traveling overseas, it is a good idea to acquire travel insurance before your departure. In fact, this should be near the top of your list of things to do. Travel insurance, similar to other forms of insurance, will probably not be needed. However, travel insurance, similar to other forms of insurance, can come in handy in the event of anything unforeseen happening while you are traveling.

Most travel insurance policies are designed to reimburse you in the event of the most likely scenarios that you might encounter while traveling, such as a delayed or canceled trip, death or illness, as well as the death of a relative at home. Travel insurance also covers the high cost of emergency medical assistance in a foreign country, as well as reimbursement for lost baggage.

You can also purchase various extras, including coverage in the event of an accident while participating in extreme sports, such as diving, skiing and skydiving; and coverage that will reimburse you for the cost of any emergency air transportation home, sometimes known as air ambulance. Travel insurance policies do not cover absolutely everything; they generally do not include coverage for expenses due to riots, wars and natural disasters.

It can be confusing determining how much travel insurance you need, or even if you actually need any at all. Most credit cards do include some kind of basic travel or trip cancellation insurance, which is usually adequate. If you are buying a plane ticket, your ticket comes with basic liability coverage for lost or delayed baggage, although it does not really cover expensive items. Also, if you are worried about your airline declaring bankruptcy, which is not so out of the question in today’s economic climate, an airline that ceases operations is required by law to protect you on another carrier or refund your ticket.

There are also policies designed for families and groups as well as so-called “multi trip insurance”. If you travel regularly throughout the year, it is almost certainly less expensive to purchase a policy that covers multiple trips. Family plans provide coverage for families traveling together and are also nearly always less expensive than buying an individual insurance policy for everyone. In this case, the definition of family may extend to various in-laws, cousins and grandparents.

The cost of your travel insurance policy can vary greatly, depending on the length of your trip and just how much coverage you want as well as your destination. Typically, you should expect to pay between 4% and 8% of the overall cost of the trip itself to have adequate travel insurance. If you are traveling to a remote or dangerous country, or to somewhere not recommended by the US department of state, expect to pay more for your travel insurance.

Not surprisingly, many people like to have the security of travel insurance or trip protection insurance if they are going on a particularly expensive or a once in a lifetime trip, such as a honeymoon or a vacation to a far away, exotic location such as Fiji or Africa.

Travel insurance policies also offer different levels of coverage, known as primary coverage and secondary coverage. If you take out primary coverage, your insurance company will pay you before any other insurance you have takes effect; if you have secondary insurance they will only pay you when you have collected from any other insurance options that are available to you.

You also may find that your policy is more expensive if you have what the insurance companies regard as a pre-existing medical condition. Always declare any pre-existing condition when you take out travel insurance, otherwise your policy may be void. This can lead to a very unfortunate experience, of needing insurance and not being able to purchase it at an affordable rate.

Once you have decided what kind of travel insurance you might need, purchasing it is simple. The internet has made it easy and convenient to shop around and compare prices and services offered. Most airlines, travel agents and cruise lines will only be too happy to sell you a policy, as they are probably getting a commission from the insurance company. You are not obligated to get your insurance through them – although it is often just as easy to do so.

If you are buying travel insurance for the first time and are confused, the best option is probably to purchase a basic policy along with your vacation, cruise or plane ticket. You should not be persuaded into taking out much more insurance than you will realistically need. Make sure that you understand exactly what is included and is not included in your policy; and that you take all the paperwork with you when you travel.

Josh Webber is a writer and blogger who discusses various aspects of the travel industry such as travel insurance.

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A Guide Car Insurance For Teenagers

When you’re learning about something new, it’s easy to feel overwhelmed by the sheer amount of relevant information available. This informative article should help you focus on the central points.

The safety features are a direct way to save money on car insurance for teenagers. There are some indirect ways too. If your teenage child is a high scorer in school, remember to mention this when you are purchasing car insurance for teenagers. Many insurance companies reward good grades with lower rates. Apart from that, it is also possible to get reasonable rates for your car insurance for teenagers if you add your teenager name under your policy. It is very common that your rates might double or even triple when you add a teenager under your policy, but you will get more savings compare to buying a single policy for your teenage child.

Young drivers might have difficulties finding cheap car insurance for teenagers because of their lacking in driving experiences. Parents are worrying about where they can find cheap car insurance for teenagers. The amount you pay for car insurance for teenagers not only depends on your car, how they drive and where you live, but also on the type of coverage you buy. While factors beyond your control can increase your insurance bill, you can still reduce annual premiums in many ways. There are ways to save on the policy premiums if you have a teen driver, but the bottom line is that car insurance for teenagers does cost more. Several factors contribute to the cost of insuring a young driver, notably their lack of driving experience and historical evidence that they may not be as responsible as an adult.

Airbags will help save the life of your teenager in the event of an accident, and may qualify for a premium discount on your insurance. If your car also comes with a safety alarm, this can also be eligible for a percentage off on your insurance. Typically, parents can expect to see an increase of anything from 50% to 200% on their car insurance premium, once a teenage driver has been added on to the auto policy. However, you may be able to negotiate a lower rate with your auto insurance company, once your teenage driver has driven for a year or two with a safe driving record.

If you find yourself confused by what you’ve read to this point, don’t despair. Everything should be crystal clear by the time you finish.

Find a cheap car insurance for teenagers can be difficult because teens inhabit such a high risk category for providers. Insurance companies are being skeptical of supplying their best rates to teens because of the association between teens and poor driving habits. In the end, car insurance for teenagers is all about defense. Next, insure your teenager’s name under your own car policy would assist tremendously in acquiring cheap car insurance for teenagers. Insurance companies do offer multi-car discounts if you include more than one name or car under your single policy.

This helps not only to ensure the cheapest car insurance for teenagers, which also help ensure that your child is best protected if he or she leaves. Insure your whole family, including cheap car insurance for teenagers. Car insurance for teenagers can be very expensive because of the risk and exposure ociated with this age group. Parents can include teenagers on their car insurance policies or let their children pay for separate policies.

Getting car insurance for teenagers can be more costly than coverage for adults, but there are things you can do to save money on the policy. It’s also important to get quotes from multiple insurance providers, so you can compare the cost and coverage of each policy. The day will come when you can use something you read about here to have a beneficial impact. Then you’ll be glad you took the time to learn more about insurance.

This article is one of many about 17 year old car insurance and car insurance for teenagers available at InsuranceSet.com

Buying Used Cars 2017 Car Industry Edition: A used vehicles car buyers guide to: Car insurance | Automobile history | Trade in how to | Automobile insurance | Used car warranty


  • Author: Stanley M. Clarke
  • Binding: Kindle Edition
  • Edition: 1
  • Format: Kindle eBook
  • Label: Gallmedia
  • Languages: Name: English; Type: Published
  • Manufacturer: Gallmedia
  • Number Of Pages: 79
  • Product Group: eBooks
  • Product Type Name: ABIS_EBOOKS
  • Publication Date: 2017-05-09
  • Publisher: Gallmedia
  • Release Date: 2017-05-09
  • Studio: Gallmedia
  • Title: Buying Used Cars 2017 Car Industry Edition: A used vehicles car buyers guide to: Car insurance | Automobile history | Trade in how to | Automobile insurance | Used car warranty

Guide To Over 50s Home Insurance

Age is certainly a significant factor when you are shopping for an over 50s home insurance policy. There are a host of insurance companies in the market that strongly believe people over the age of fifty portray less risk when it comes to home insurance policies. The people of this age group are very conscious about their possessions and hardly ever make an invalid claim.

Also if you are in the age bracket of fifty years, then there is good news for you. The specialty of over 50s home insurance policies are so designed, that in some cases they are even more attractive than the standard home insurance policies because they are more affordable. At times you may also be offered many attractive product features that could be relevant to cover all your needs.

A good deal is often considered important in case of senior citizens, as they live on a fixed income depending upon the retirement amount they receive. In many cases, these individuals didn’t opt for home insurance when they were younger. When they turn fifty, people often feel the need to opt for one and therefore start their search for suitable cover with the help of recommendations from their family members and friends, on which company will offer them the best value for their money. If records are to be believed, there is a constant increase in the number of people who search for more competitive policies over the Internet. More and more companies are coming up with favorable schemes to attract users offline and the growing population, becoming computer literate, is also one of the major reasons that these policies are on the increase.

If you are heading out to look for over 50s home insurance, it’s better to do some comparison shopping before you decide to choose a particular policy. This is especially helpful in cases when you are comparing the quotes of several providers.

When you are filling out the form to get free insurance quotes, you will get quotes from many other insurers at the same time. After you have completed your comparison, hand pick the ones that seem to be more attractive to you than the rest and then move ahead for further comparison. You must also check out those insurance providers who are believed to offer the most competitive rates according to the recent industry news.

The benefit that you get with over 50s home insurance policies is cheaper rates and greater discounts. Make sure you devote sufficient time on your research. By making smart choices, you will get the cheapest and best premium available, in the current market for your home.

Lawrence White specialises in writing about insurance. If you are looking for Over 50s Insurance, then choose Castle Cover who are one of the UK’s leading over 50s insurance provider.