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How choosing business liability coverage enhances your reputation and attracts clients.
As a business consultant, apart from diligently honing your skills, your focus should be on making sure that you appear to be a competent and trustworthy ally that businesses can count on for effective solutions to their needs.
An important part of creating that reputation or brand image for yourself is also conveying the impression that you are well prepared to take on challenges, no matter how large or complex.
Now the big question that not many people ask is…
How exactly do you do that?
Our answer is…
You guarantee, by various means, that your reputation in the market is positive, you get it Feedback from happy customers through organic reviewsor demonstrate your knowledge and abilities via a blog where you share your ideas or industry updates.
There are many ways in which you can manage your brand image and reputation, all of which help tremendously in convincing a potential client that you are just the consultant they are looking for.
However, there is one thing that can complicate or spoil a deal.
How prepared are you for a setback – this is a question that most companies will actively explore when they look to hire you as a consultant?
There may be many setbacks that the counselor needs to deal with. You may have a shortage of staff to handle a client’s needs; You may face shortness of time to get the task done etc.
But the biggest and most debilitating challenge that applies to the people in the insurance industry you risk facing is the one that may arise after you start or even finish the business – the risk that the customer will not be satisfied with you. business or think that your business has caused some harm to their business.
Legal risks
No matter what type of consulting business you run, the risk of facing a lawsuit is always something you should be prepared to deal with.
Remember that a customer may file a lawsuit against you when that they You feel that you did not live up to their expectations.
They don’t have to be right in thinking that. You may have done more than could reasonably be expected of you, and the customer could still sue you.
One situation where you face a legal claim is that liability insurance comes to the rescue – to cover your legal costs, which can be a pretty huge amount.
Unfortunately, many consultants make the mistake of ignoring insurance when they start.
Usually this happens because the consultant is completely confident in his abilities and believes that there will never be a situation where the client is not satisfied.
Again, remember that the customer may be unreasonably dissatisfied with your work as well. That’s why you should cover your consulting business with the right kind of Consultants Liability Insurance.
When should you consider liability insurance?
This is the question many business advisors ask when they are advised to get liability insurance near them to cover their potential legal expenses.
Well, the answer is that it’s best to get coverage ASAP so that your business is really protected.
Keep in mind that the insurance will only cover projects you’ve taken on after the coverage goes into effect.
If you have taken on a project before and it continues after you have taken out your insurance coverage, the project may still not be protected by the insurance plan. There is no way you can predict which client will sue you, so there is no justification for postponing insurance either.
There is another good reason to think about insurance the right way – it builds your credibility in the eyes of your future clients.
Let’s consider a scenario where you make an offer to a large client. There is a good chance that they will ask about your legal preparedness with the expectation that you will be well prepared for any contingencies.
No company would want to risk hiring a consultant whose business could collapse due to lack of funds if a previous client files a case against him/her.
Knowing that you have insurance that covers your bases tells a potential client that you are a competent business owner – a very important trait to them.
Thinking about legal insurance initially is also good for you in another way.
As an independent advisor, you do not have the luxury of the unlimited financial resources that major corporations have at their disposal. This means that the amount of cash you can afford to fight legal battles is severely restricted.
However, you can’t leave an allegation unchallenged because that might sound like an admission of guilt.
Since you don’t have huge financial resources, and you can’t set aside a lot of money from your business for legal costs, your only option is to have a sound insurance plan that covers you so that it absorbs your lawsuit expenses and keeps your business from bankruptcy.
Do all self-employed people need general liability insurance?
yes. What determines whether you will need general liability insurance is not your sales number, but whether or not you are in contact with the public. If your type of business brings you close to the public, you should get a general liability insurance policy even if you are a freelance business owner. However, many insurance providers will consider your turnover when calculating your premium.
Summary
Protecting your consulting business with a liability insurance plan should be a priority for you.
Postponing this can be a serious mistake; After all, legal expenses can turn out to be severely draining and without insurance to cover these expenses, there’s a good chance you’ll absorb all of your business capital into fighting your legal battles.
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