Safety Consultant Insurance Policy Information
Safety Consultant Insurance. Safety consultants play important roles in improving the health, safety, and (indirectly) financial wellbeing of numerous different industries.
They may work in specific industries, such as aviation, the maritime sector, or engineering, to identify shortcomings or additional needs to render projects safer.
Safety consultants inspect and evaluate clients' property and operations, developing recommendations to prevent and manage the risk of injury to people and loss to property. Many safety consultants are engineers who use higher mathematics, economics, biological and physical sciences in developing recommendations.
Expertise may also be needed in federal standards governed by OSHA (for employees' safety) or other agencies such as NFPA (for fire safety). Safety consultants may work for insurance companies or offer their services independently.
Consultants may be generalists or may specialize in a particular area, such as fire prevention and control. They may conduct safety training, develop safety policies and manuals for their clients, investigate workplace incidents, or offer ongoing services.
Regulation of safety consultants' certification and educational requirements vary by state.
Due to the fact that safety consults are rarely hired full-time, as permanent employees of a business, many safety consults will opt to run their own business. Such safety consulting companies can certainly thrive, as there will always be a need for the expertise safety consultants can offer.
Despite the fact that safety consultants will be highly aware of the potential threats their own ventures may encounter, however, they still have to contend with the threat that unexpected circumstances could suddenly endanger their financial future.
What sort of safety consultant insurance might be needed? Read on...
Safety consultant insurance protects consulting firms from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked safety consulting insurance questions:
- What Is Safety Consultant Insurance?
- How Much Does Safety Consultant Insurance Cost?
- Why Do Safety Consultants Need Insurance?
- What Type Of Insurance Do Safety Consultants Need?
- What Does Safety Consultant Insurance Cover & Pay For?
What Is Safety Consultant Insurance?
Safety consultant insurance is a type of insurance that protects a safety consultant or firm from financial losses in the event of lawsuits or claims related to the services provided by the consultant or firm.
This type of insurance may cover various forms of professional liability, such as errors and omissions, breach of contract, and professional misconduct. The purpose of safety consultant insurance is to protect the financial interests of the consultant or firm and help mitigate the risk of potential financial losses due to claims related to their services.
How Much Does Safety Consultant Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small safety consulting firms ranges from $37 to $59 per month based on location, size, revenue, claims history and more.
Why Do Safety Consultants Need Insurance?
While you will do everything in your power to run a smooth - and safe - operation, you will still face many of the same risks other businesses are subject to, alongside some industry-specific ones.
safety consultants will need to invest in excellent insurance coverage not only to meet legal obligations, but also to make sure that their business has the chance to recover from serious perils.
If you own or rent a commercial property, that property may be impacted by an act of nature, like an earthquake or wildfire, at virtually any time. In the process, you can expect repair costs of such a magnitude that you are unlikely to be able to cover them on your own.
Theft, vandalism, and accidents - including those that start fires - represent further examples of the very real threats small business owners with commercial properties face.
Safety consultants additionally face liability risks. Even if you perform your job to the highest possible standards, for instance, a client may always allege that you missed something that later caused a malfunction or accident.
If you are sued, the related costs can easily become overwhelming. If you have employees, one of them being injured in the workplace could lead to similarly exorbitant costs.
Safety consultants may help others ensure that their projects and workplaces comply with up-to-date health and safety standards, but they also need protection in case something happens to their own business.
Investing in the correct safety consultant insurance is the only way to meet that need.
What Type Of Insurance Do Safety Consultants Need?
Safety consultants can be sure that they will need to carry several types of insurance, but the exact nature of the coverage they require will depend on their unique circumstances.
The jurisdiction where your consultancy business is based, the nature and value of your physical assets, and whether you work as a sole practitioner or have hired employees, are merely some examples of the many factors that determine the types of coverage you need.
Consulting an experienced commercial insurance broker is essential, as they will be able to help you craft an insurance plan tailored to your unique situation. Examples of the kinds of safety consultant insurance most likely required, meanwhile, include:
- Commercial Property: This form of coverage will defend you from financial losses if your commercial property were to be affected by perils such as acts of nature, vandalism, or theft. It covers not only your premises, but also smaller assets within, such as computers and HVAC systems.
- General Lability: This broad type of safety consultant insurance coverage helps to cover your legal costs in case a third party sues you and accuses you of causing personal injury or property damage. Two examples would be a client slipping on a wet floor in your office, or a tree on your property damaging a vehicle that belongs to someone else.
- Professional Liability: Also called errors and omissions insurance, this specialized form of coverage protects you if a customer alleges that you were negligent in performing your services. Remember that you can be sued even if the claim later proves to be baseless - this type of insurance is essential to anyone who provides a service.
- Commercial Auto: As a safety consultant, you will rely heavily on commercial vehicles. These need to be protected by commercial auto coverage in case of accident or damage.
These essential kinds of safety consultant insurance are merely examples of the types of policies needed to include in a comprehensive insurance plan. To find out more, consult a commercial insurance agent.
Safety Consultant's Risks & Exposures
Premises liability exposure is very limited at the firm's office due to lack of access to the general public. Off-site exposures are extensive as consultants will tour clients' premises and job sites, including access to sensitive areas. Those employees may contact the client's customers as part of their analysis. There must be training, procedures, and policies regarding appropriate off-site conduct and methods of ensuring confidentiality.
Complaints about consultants should be dealt with quickly. Personal injury liability exposures include allegations of assault, discrimination, and invasion of privacy.
Professional liability exposures are often limited since the consultant is only advising as to safety, not implementing programs. The exposure increases if guarantees or warranties are made, such as a reduction in thefts or accidents, if the consultants actually put a plan into place for the client, or provides ongoing supervision.
Independent safety consultants may have legal responsibilities to both sides in a dispute and are sometimes party to sensitive negotiations. Hazards increase if the firm fails to conduct thorough background checks to verify employees' education and employment history.
Other exposures include allegations of breach of a client's confidentiality or a conflict of interest.
Workers compensation exposure varies according to the services provided. If most of the work is done in the office and on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Travel may be extensive. Off-site exposures may include working at construction sites, at heights, on rough terrain, or in isolated areas. Consultants may be exposed to a variety of chemicals and conditions. Injuries could result from trips and falls, being struck by falling objects in construction and manufacturing operations, respiratory ailments from inhaling pollutants, dusts, or other allergens, foreign objects in the eye, hearing impairment from noise, assaults, attacks by unrestrained animals, or in vehicle or aviation accidents.
Back strains, hernias, and related injury can occur when lifting, obtaining samples, or attempting to view processes. Since consultants may work alone, injuries may go unnoticed, which can lead to delayed response and delayed first aid.
Employees should have appropriate safety gear when traveling to a job site. Consultants may be injured in vehicle or aviation accidents.
Property exposure is generally limited to that of an office. Ignition sources include wiring, heating and air conditioning systems, wear, and overheating of equipment. There may be storage of client information in paper form, although these are now often digital instead of paper format.
All paper should be stored in fireproof cabinets. Fire suppression systems must not damage the papers. There may be specialized measuring and analysis equipment or custom software. Computers and other electronic equipment may be targets for theft.
Inland marine exposures are from accounts receivable if the firm offers credit, computers, special floater, and valuable papers and records for contracts and clients' information. Computer systems must be backed up regularly and have adequate security features to prevent unauthorized access due to the potential for industrial espionage or by hackers.
Inspectors often carry their computers with them on-site to record their observations and findings. They may have ladders, flashlights, and specialized testing and analysis devices for work at clients' premises. A morale hazard may be indicated if the inspector does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water, and fire.
Power failure and power surges are potentially severe hazards to data stored electronically. Duplicates should be kept off-site to allow for easy restoration.
Crime exposure arises from employee dishonesty, including theft of clients' property, and various types of fraud since many businesses are dependent on certification or approval by safety consultants. The exposure can be quite serious as consultants have access to clients' personal and proprietary information.
Potential for theft, particularly industrial espionage, is great. Background checks should be conducted on all employees. Monitoring procedures and securing of all records should be enforced to prevent unauthorized access to client information.
There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.
Business auto exposures are moderate as consultants travel to clients' premises. Consultants may use rental cars when sites to be inspected are not local. If company vehicles are supplied for use, there should be written procedures in place regarding personal use by employees and their family members. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.
What Does Safety Consultant Insurance Cover & Pay For?
Safety Consultants can be sued for a variety of reasons, typically related to their professional services or advice. Common reasons for lawsuits include:
Negligence: Safety Consultants can be sued for negligence if they fail to meet the professional standards or provide incorrect or incomplete advice, leading to injury or financial loss for their clients. Professional Liability Insurance (also known as Errors & Omissions Insurance) can help cover the legal fees, settlements, or judgments arising from such a lawsuit.
Breach of contract: If a Safety Consultant fails to deliver the agreed-upon services or does not adhere to the terms of their contract, they may be sued for breach of contract. Professional Liability Insurance can also help cover the costs associated with defending against a breach of contract claim and any resulting damages awarded to the client.
Intellectual property infringement: If a Safety Consultant uses copyrighted materials or infringes on a client's patents or trademarks, they may be sued for intellectual property infringement. General Liability Insurance, with an endorsement for intellectual property coverage, can help pay for legal fees and damages if the Safety Consultant is found liable for such infringement.
Defamation: Safety Consultants may be sued for defamation if they make false or damaging statements about a client, competitor, or another party. General Liability Insurance can help cover legal fees and damages resulting from a defamation lawsuit.
Workplace accidents or injuries: If a client or a third party is injured on the Safety Consultant's premises, the Safety Consultant may be held responsible for the injury. General Liability Insurance can help cover medical expenses and legal fees related to the injury.
For each of these examples, the specific coverage and limits of the insurance policy will determine the extent to which the insurance can help pay for the lawsuit. It is essential for Safety Consultants to work closely with their insurance providers to ensure they have the appropriate coverage in place to protect their businesses from potential legal claims.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8748 Business Consulting Services, Not Elsewhere Classified
- NAICS CODE: 541690 Other Scientific and Technical Consulting Services, 541620 Environmental Consulting Services
- Suggested Workers Compensation Code(s): 8803 Auditor, Accountant, or Computer System Designer or Programmer - Traveling
Description for 8748 Business Consulting Services, Not Elsewhere Classified
Division I: Services | Major Group 87: Engineering, Accounting, Research, Management, And Related Services | Industry Group 874: Management And Public Relations Services
8748: Business Consulting Services, Not Elsewhere Classified: Establishments primarily engaged in furnishing business consulting services, not elsewhere classified, on a contract or fee basis.
- Agricultural consulting
- City planners, except professional engineering
- Economic consulting
- Educational consulting, except management
- Industrial development planning service, commercial
- Radio consultants
- Systems engineering consulting, except professional engineering or
- Test development and evaluation service, educational or personnel
- Testing services, educational or personnel
- Traffic consultants
Safety Consultant Insurance - The Bottom Line
To protect your consulting business, employees and clients, having the right safety consultant insurance coverage is essential. To see what types of policy options are available to you, how much coverage you should have and associated premiums - speak to a reputable commercial insurance broker.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.