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Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a human resources consulting organisation.

Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a human resources consulting organisation.

This article will discuss the primary insurance coverage for human resources consulting organisations, general liability insurance, as well as additional policies that are appropriate for this industry.

Human Resources Consulting Firms Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: You spill coffee on a desk while visiting a client’s workplace, causing damage to a laptop and other electrical equipment. Your legal duty to replace or repair the damaged products is covered by general liability insurance.

Example 2: A local rival has filed a lawsuit against you, claiming that your new marketing effort specifically targets them and has lost them a large amount of revenue. Your general liability coverage will cover your legal fees as well as any monetary damages awarded in court.

Example 3: A customer comes in while you are working on your office and stumbles over some work equipment. He has filed a lawsuit against you and the contractor to pay medical costs and other losses. The expense of your portion of the litigation will be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Human resources consulting businesses in the United States typically pay between $400 and $700 per year for $1 million in general liability coverage.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Human Resources Consulting Firms

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every human resources consulting organisations should have are as follows:

Insurance for Commercial Property

This insurance, which is often included as part of a business owner’s policy (BOP), protects company-owned real estate and property from claims such as fire and weather. This policy may be tailored to your company’s particular requirements.

Insurance for Professional Liability

In this field, your customers depend on your professional knowledge and skills to guarantee the seamless operation of their organisation. They may sue you for professional negligence if they believe you have not satisfied the requirements of the service agreement. Even if the claim is without validity, the court may order you to pay claimant damages. Professional liability insurance covers associated legal fees and awarded damages up to the policy limits.

Coverage Options for Human Resources Consulting Firms

In addition to the policies listed above, your human resources consulting business may need other forms of coverage based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Workers’ Compensation

State law requires employers to safeguard their workers if they get sick or injured on the job. Workers’ compensation pays for connected medical expenditures as well as a part of lost income while the employee is out of work. Furthermore, it shields the employer against litigation by providing legal counsel if an employee sues.

Workers compensation insurance is often acquired as a separate policy.

Insurance for Data Breach (aka Cyber Attack insurance)

Most contemporary businesses depend on technology for the majority of their operations. Unfortunately, this also exposes us to internet hackers, an assault that is not covered by a general liability coverage. Data breach insurance bridges the insurance gap by covering losses resulting from a data breach that results in stolen user data.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.