Updated: Oct 15, 2019
Let’s face it, the work we do is not exactly life and death as, after all, the final decision to do something is still with the customer. This does not mean there isn’t any risk to you. No matter how good you are at what you do, sometime expect results don’t quite materialize, or your advice leads to a client losing money, with the result that your business can get slapped with a lawsuit. To mitigate this, you should consider getting business insurance. In fact, you’ll find that many companies will not contract with you unless have, and they have seen a certain level of business insurance.
There are two basic types of insurance that you will need:
Commercial general liability (CGL) insurance: this is broad coverage for lawsuits related to third-party bodily injury and property damage. This insurance covers the cost of paying medical bills and replacing damaged property, as well as your legal defense if you are sued. If you are required to pay a settlement or judgment from a lawsuit, your general liability policy pays up to your policy limits. Typical coverage required is $1M for an Agile coach.
Business consultant professional liability insurance (or errors and omissions insurance) provide protection if a client sues you for negligence related to your work. It covers defense costs, settlements, and judgments. Typical coverage required is $2M for an Agile coach.
There are two basic approaches to setting up business insurance:
Website direct: There are a number of direct to customer insurance companies out there. Owners of FiveWhyz have had good results with HISCOX.
Through a broker: Again, there are a number of brokers out there. Owners of FiveWhyz have had good results with Tech Insurance.
The cost for both of these combined will be about $120-$150 per month.
By Way of Context ...
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And remember, I am not an accountant. I am not a lawyer. You will want to get help from these experts and should defer to their opinion in the event that what you read on this page differs from their opinion.