- The world is unpredictable.
Bad things happen.
Insurance coverage protects you,
your employees and your clients.
You'll need several insurance policies
that may include general liability,
errors and omissions, auto, health,
disability and workers compensation.
General liability is exactly that.
It's coverage that can protect you
from a variety of claims including bodily injury,
property damage, personal injury
and other risk that can arise from your business operations.
Errors and omissions insurance,
which is commonly referred to as E&O
protects companies and their workers
or individuals against claims made by clients
for inadequate work or negligent actions.
But not all consulting firms need E&O insurance.
Just because a client ask for it,
it doesn't mean you have to provide it.
At Thought Leaders, we deliver training services.
We go to the client, we teach for a day,
and then we go home.
A lot of my clients ask for E&O insurance,
and we tell them, it's not really necessary.
We're not creating the kinds of deliverables
that would require E&O insurance.
By negotiating that point, we save a lot of money
on premiums every year.
So, make sure you think through your business
and whether a coverage is required.
Auto, health and disability insurance are fairly common.
The biggest decisions you need to make
are your insurance provider, your coverage levels
and whether or not you'll offer health
and disability insurance to your employees.
If you do, consider working with a firm
that manages programs like that.
Different clients will have
different insurance requirements.
Understand and comply with those requirements.
Also make sure you have enough coverage
in case disaster strikes.
Running a business without proper insurance
is a risky proposition.
While insurance can be expensive,
its cost pales in comparison to what a catastrophe
or a lawsuit judgment can cost.
Ensure your business properly from day one of operations.
Not doing so is a mistake that can kill your business
and even leave you personally liable for huge expenses.
It's not worth the few dollars you'll save on premiums
each year to take that kind of risk.