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What insurance should an independent HR consultant have?

An independent HR consultant has many types of insurance needs and options. A consultant working full time and without the usual fringe benefits provided to an employee would usually want to obtain health (medical, dental and vision), short- and long-term disability, accidental death, and life insurance. He or she may also want to purchase business-related insurance, including property and personal liability, commercial auto, business interruption and workers’ compensation in states where it is required.

An HR consultant may want to have professional liability or Errors and Omissions (E&O) insurance that provides coverage if a client accuses him or her of breach of contract or providing advice that results in financial loss. In addition, a consultant who has one or more employees may decide to purchase employment practices liability insurance (EPLI), which protects against employment-based complaints such as illegal discrimination or wrongful termination.

States, as well as cities and counties, may require specific types of insurance for business licenses. Before beginning to provide services, an HR consultant needs to check and obtain any insurance required to do business in his or her state and locale.


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