Professional Liability Insurance for HR Consultants

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What is HR consulting professional liability insurance?

The field of HR has become increasingly complex and in demand by today’s businesses. As an HR consultant, however, you could be sued by a client if they believe you’ve made an error or omitted key information during the course of your consulting duties.

Fortunately, EasyCover by Acera Insurance offers professional liability insurance for HR consultants. This insurance, also known as errors & omissions (E&O), can help cover your legal expenses should you be taken to court for any services or advice you’ve provided in your role as an HR consultant.

Interested in purchasing your professional liability online in minutes?

Acera Insurance offers EasyCover where you can get a quote, bind your policy and pay online in only a few short minutes. Get comprehensive coverage and affordable rates quickly and easily.

Here are some of the benefits of EasyCover:

Get free online quotes 24/7
No long, confusing applications to fill out
Purchase and manage your policy online
Support by phone, email or chat
Option to bundle with other coverages

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What does HR consultants professional liability insurance cover?

Many HR consultants already have commercial general liability (CGL) Insurance. Unfortunately, CGL policies typically don’t cover professional services or advice. If a client believes your hiring practices, HR policies or employee relations led to financial or reputational harm, you could face legal action. Even unintentional errors can lead to costly claims.

Professional liability insurance helps protect HR consultants like you by covering legal expenses stemming from such claims, provided there’s no fraud, criminal acts, or intentional wrongdoing involved.

How much professional liability coverage do HR consultants need?

In the event of a claim against you for your consulting services, our professional liability Insurance can help cover your legal defense costs. Your policy also covers any settlement or judgement awards, up to your coverage limits.

With EasyCover, you can select from three levels of coverage:

$1 million
$2 million
$5 million

These are the maximum payout amounts for any claims within a 12-month policy period. The right level of coverage for HR consultants depends on the industry and type of clients you serve, the size and nature of your contracts, and the financial impact of potential lawsuits.

For each covered claim, you’re responsible for a deductible that is generally $250 to $1,500. This deductible amount is based on your annual revenue. If you have two covered claims in one year and your deductible is $500, you’d pay $1,000 in deductible fees. Your professional liability insurance would cover the remaining legal costs, up to your policy’s limits.

E&O Insurance for HR Consultants

With EasyCover by Acera Insurance, we insure the following HR consulting professions:

Recruitment Consultants
Learning & Development Consultants
Compensation & Benefits Consultants
Payroll Specialists
Organizational Development Consultants

Change Management Consultants
HR Technology Consultants
HR Strategy Consultants
Employee Relations Consultants
HR Analytics Consultants
Compliance Consultants

If you don’t see your profession listed here, do not worry.
Connect with us and we’ll see what we can do.

Common
claims scenarios for HR consultants

Benefit plan advice

You have been hired to review options for a new benefit plan for a client. Unfortunately, there is a underestimation of the cost which causes unexpected expenses. Your client files a claim against you.

Confidential information

Your duties as HR consultant allows you to have access to employees’ confidential information. You accidentally disclose sensitive information resulting in a breach of confidentiality claim.

Termination

You provide an erroneous termination procedure triggering a lawsuit for wrongful dismissal. Your client holds your responsible and seeks monetary reparation.

Top factors influencing HR consultants professional liability insurance rates

HR consultants professional liability insurance rates can vary based on these factors:

The type of consulting services you provide
The kinds of clients and industries you serve
Your annual revenue
Your years of experience
Your insurance and claims history
Your coverage options and limits
Your employee count
The province(s) you operate in

If you’re looking for a quick online quote to get an idea of how much your professional liability insurance will cost, try our EasyCover virtual tool.

How much does E&O insurance for HR consultants cost?

Professional liability coverage for HR consultants can range between $495 to $858. For example, an entry-level HR consultant with an annual salary of $49,000 would pay $495. With greater years of experience and increased earnings, a senior-level HR consultant, who makes up to $105,000 per year, would be more likely to pay closer to $858 for their E&O policy.

Use our quick quote tool to generate your own online E&O estimate. If you are comfortable with the price, continue to the next step to complete your purchase online. It’s that easy.

Risk management strategies for HR consultants

Although professional liability insurance for HR consultants is essential for protecting your career, proactive risk management is your strongest safeguard against costly legal disputes. By implementing preventative strategies, you can reduce risk, protect your professional reputation, and stay focused on delivering effective HR solutions, navigating employment laws, and supporting organizational growth with confidence and peace of mind. Here are some practical tips to help lower your exposure and stress:

Clear Communication

In any consulting business, clear communication is crucial. Make your clients and employees understand their roles, responsibilities and expectations, while providing opportunities for clarification when needed.

Consistent Record Keeping

It’s best practice to ensure you maintain a record of your communications and ensure you have a secure record of your client data. Be sure to follow up any in-person or phone meetings with an email or written notes of discussions and key decisions.

Stay Informed

Staying current on HR standards, regulations and best practices is vital to helping you minimize errors, while maintaining a high quality standard for your consulting firm.

Why HR consultants trust Acera Insurance and EasyCover for their E&O coverage

EasyCover by Acera Insurance is proud to provide professional liability insurance at affordable rates to HR consultants throughout Canada. We make sure it’s quick and easy to get the coverage you need through our EasyCover online tool. You can get an instant quote and secure your policy in only a few minutes. We’ll also be there to provide reliable support when it comes to any coverage questions and claims.

We also offer additional liability coverage options for HR consultants.

Commercial General Liability

This standard commercial insurance protects you from a third-party’s injuries or property damage resulting from negligence. It could apply to a visitor who falls at your office for example. However, note that CGL doesn’t cover employees’ injuries or damage to your business property.

Cyber Liability

Cyber liability insurance is strongly recommended for all HR consultants. In the event of a cyber-attack or data breach, it can help cover your recovery costs, up to the limits of your policy. These expenses can be significant and may include legal fees, public relations support, and other related costs.