Consultants & Consulting Firms | GB&A

Consultants & Consulting Firms

Compliance consulting, title IX consulting, marketing positioning consultants. Not only has the consulting industry seen tremendous growth in the past 10 years, it has also seen a tremendous amount of specialization. With these niche practices comes a greater assumption of expertise - consultants are now being considered specialists and experts in their designated fields. With this assumption of expertise comes a greater presumption of improved results and a greater responsibility. When services do not deliver as advertised or your advising does not achieve the desired results, lawsuits are quick to follow. And litigation does not always need “teeth” to cause damage - even claims without merit can be extremely time consuming and costly to defend. For consulting firms and consultants working for larger companies, the nature of the relationship alone can inflict pressure - larger companies often have the resources, time and funds to bring litigation whereas the smaller consulting firms may not. The only source of protection for such claims is professional liability insurance (also known as E&O). The term Errors & Omissions insurance though can be misleading - E&O (professional liability) can offer protection against much more than simple errors and omissions, providing defense costs, fees and settlements for claims such as:

  • accusations of wrongdoing or misrepresentation
  • claims from 3rd parties
  • claims against you by nature of being a “deep pocket”
  • compliance and failure to keep up with changing regulations
  • fines, penalties and regulatory investigations 
  • certain cyber related claims

Professional liability insurance is not a a commoditized-like product like auto insurance, coverage can significantly differ from carrier to carrier. Failure to acknowledge or understand these differences can have far reaching coverage implications in time of need. These policies also work very differently than “occurence based” general liability policies most brokers as used to. Partnering with a knowledgable professional liability broker is a critical step in securing a well structured insurance policy/program. Some of the consultants we work with include: 

  • Governance & Compliance Consultants
  • Finance & Accounting Consulting
  • Tech & IT Consulting
  • Market & Strategy Consultants
  • Executive Coaching & Management Consulting
  • Industry specific consulting (Education, Healthcare, etc)

Risk Profile

The Risk Profile below outlines your company's core exposures. Click to learn more and select your coverages of interest to begin building your insurance portfolio or click "Connect With A Broker" to contact us.

  • Commercial Liability & Property

    Commercial liability packages (sometimes referred to as CPP's or BOP's) provide balance sheet protection in the form of financial reimbursement and liability protection in the form of coverage for defense costs and damages resulting from:

    • Claims asserting bodily injury and/or property damage
    • Product liability claims (unless excluded)
    • Advertising Injury such as libel, slander and infringement related claims 
    • Theft and property damage losses for inventory, business property, machinery, etc
    • Loss of business income
    • Equipment breakdown
    • Key Broadening endorsements (Transit coverage, basic cyber, employee dishonesty, ERISA, basic EPLI, and more)

    Due to the fact that endorsements can either broaden and extend coverage or limit/exclude coverage, policies should be carefully reviewed. Seemingly small endorsements such as “selling price” endorsements and business income coverage for dependent properties (such as suppliers, retailers and leaders) can provide substantial coverage enhancements. Due to the advertising risks faced by this sector, it is also often wise to seek coverage through a carrier that has a strong reputation for advertising coverage.

  • Professional Liability / Errors & Omissions

    Professional Liability insurance (also known as errors & omissions) provides liability protection for lawsuits brought by clients or 3rd parties asserting financial damages resulting from errors, acts or omssions in providing services and claims asserting failure to perform or deliver. E&O provides defense costs, damages, and other costs associated with resulting claims and litigation. E&O is a critical insurance component for companies in the financial, professional services or technology sectors. 

  • Employers Liability & Workers Compensation

    Workers Compensation insurance is a mandatory coverage for companies with employees (including volunteers, uninsured independent contractors, leased or part time labor). It provides coverage for employees’ wages and medical payments resulting from injuries sustained while “on the job”. Coverages to consider include “broad form all states” coverage and foreign workers compensation coverage (especially important for employees traveling abroad for business). Additional employee related coverages that should be considered include: 

    • EPLI/Employment liability (protection for the hiring/firing of employees and discrimination/harassment related claims)
    • Employee benefits
    • ERISA/Fiduciary coverage (for the administration of employee benefits)
    • Long term disability
    • Kidnap & Ransom (for employees traveling abroad for business)
  • Directors & Officers (D&O) and Employment Liability (EPLI)

    Directors & Officers insurance provides:

    • Direct Protection for individual directors and officers against non indemnifiable claims such as derivative claims or bankruptcy related litigation. 
    • Balance sheet protection in the form of reimbursement to the entity itself for claims in which the entity indemnifies individual directors or officers
    • Protection for claims asserted against the entity itself

    Claims are often asserted by shareholders, investors, employees, creditors, competitors and regulatory agencies and can include:

    • Claims asserting misrepresentations made in private placement memorandums
    • Breaches Of Fiduciary Duties
    • Anti Trust & False Advertising Claims
    • Bankruptcy related claims
    • Accusations of Fraud

    Additional optional coverage components include:

    • EPLI/Employment Liability: Provides protection for the hiring, firing and management of employees. Such claims can include wrongful termination, failure to hire/promote, harassment, discrimination, and retaliation. Optional coverage for 3rd party claims can be included for claims asserted against non employees (such as clients, vendors, etc)
    • Crime & Employee Dishonesty: Protection for the entity against theft, fraudulent invoicing schemes, warehouse theft, social engineering, etc.
    • Fiduciary Liability: Protection for the directors & officers assets against losses caused to employee benefit plans
  • Cyber Liability & Data Security

    Cyber Liability insurance provides

    • First Party coverage for damages sustained by the entity including: lost income and restoration costs, notification and credit monitoring costs, costs related to extortion demands, and more
    • Third Party liability protection for claims and lawsuits arising from: failure to protect from (or prevent) an intrusion or transmission of a virus or attack, regulatory actions, media related liability, claims asserting breach of intellectual property and more.

    Claims can arise from

    • Data Breaches, viruses and unauthorized access 
    • Lost or stolen laptops and lost or stolen paper records
    • Transmission of a virus to others
    • Rasomware and extortion demands
    • Media related liability
    • Clerical and human errors in opening or transmitting files
    • Payment processing and POS terminals
  • Employee Theft & Crime

    Crime & fidelity insurance provides protection for the entity against financial losses resulting from crime, theft and dishonest acts committed by employees, executives, independent contractors and other parties. Claims can include theft of money or securities, forgery, alteration, computer fraud, fraudulent invoicing, credit card and funds transfer fraud and more. More modern schemes include social engineering attacks (such as business email compromise, also known as CEO fraud). Third party crime coverage provides protection for claims of theft asserted by clients or customers while your employees are working on their premises or have access to computer networks. 

Get (Risk) Managed.

Ready to review your existing insurance program? Interested in setting a reminder for a renewal review? Or simply have a question? We're here to help. We also understand you're busy - let's schedule a time to speak that works best for you. Simply schedule a call and we'll reach out when it's convenient.

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