Insurance for Independent Consultants
- Published on August 20, 2012
- Written by Dr Tom Phelan
Since 2002, my S-Corporation carried "Errors and Omissions" or Professional Insurance coverage. As an independent BCP/DR consultant, are you adequately insured? In 2008, my insurance carrier expanded coverage (known as the Bell endorsement) to include insurance for several crisis and emergency conditions that might create a business loss and hence a claim. The items covered may be of interest to you. They were not available in all states.
As an independent BCP/DR consultant, do you have the following coverage?
$25,000 Identity Theft Expense - coverage which reimburses the expenses of any director or officer who becomes a victim of an incident of identity theft;
$25,000 Terrorism Travel Reimbursement - which covers any director or officer for emergency travel expenses that he or she incurs in the event of a "certified act of terrorism";
$25,000 Emergency Real Estate Consulting Fee - coverage for realtor's fee or real estate consultant's fee necessitated by the insured's need to relocate due to the "Unforeseeable destruction" of the insured's principal location;
$25,000 Temporary Meeting Space Requirement - coverage for rental of meeting space which is necessitated by the temporary unavailability of the insured's primary office space due to the failure of a climate control system, or leakage of a hot water heater;
$25,000 Workplace Violence Counseling - in the event that a violent incident occurs at any of the insured's premises;
$50,000 Kidnap Expense - coverage for reasonable fees incurred as a result of the kidnapping of a Director of Officer or their spouse, "domestic partner", parent or child;
$50,000 Key Individual Replacement Expenses - coverage for the Chief Executive Officer or Executive Director who suffers an "injury" which results in the loss of life. No deductible applies to this coverage;
$25,000 Image Restoration and Counseling - coverage for image restoration and counseling arising out of "Improper Acts."
$25,000 Donation Assurance - coverage for "Failed Donation Claim(s)"
$25,000 Business Travel - coverage for Business Travel Accidental Death Benefit to the Named Insured if a Director of Officer suffers an "injury" while traveling on a common carrier for business;
The Crisis Management Endorsement included the following:
$25,000 Crisis Management - coverage for "crisis management emergency response expenses" incurred because of an "incident" giving rise to a "crisis."
I found this additional coverage interesting. My municipalities and larger corporations require certain type of insurance coverage be carried by indendent consultants. My lawyer advised, "Don't go to work without it."