Consultants and professional firms usually need professional liability, also called errors and omissions, plus cyber, general liability, workers’ compensation and often employment practices liability. Client MSAs set the limits, the claims made terms and who must be named. SF Coverage checks each agreement against your current policies for free, flags gaps such as missing contractual liability or retroactive date issues and drafts the certificate request for your current broker.
Who sets your insurance requirements
- Enterprise clients and procurement teams
- Professional liability and cyber limits, general liability, certificates naming the client and notice of cancellation.
- Public agencies and universities
- Specific limits, additional insured status on general liability and auto, and workers’ compensation evidence.
- Office landlords
- General liability naming the landlord, property coverage for improvements and a waiver of subrogation.
- Prime contractors on larger engagements
- Flow down insurance terms that match the prime contract.
Coverage professional services firms usually carry
Exposures to get right
Advice and delivery errors
Missed deadlines, flawed recommendations and work that does not perform as promised.
Claims made timing
A late retroactive date or a gap between policies can leave earlier work uncovered.
Data and payment fraud
Client data and invoice fraud create losses that general liability does not cover.
In California
- California requires workers’ compensation for every employer, including office based firms.
- California applies the ABC test to decide whether a worker is an employee under AB 5, codified in Labor Code section 2775, which affects payroll reported for workers’ compensation.
- The California Consumer Privacy Act, as amended by the CPRA, applies to many businesses that handle California consumer data and shapes client cyber requirements.
How SF Coverage works for professional services firms
Have these ready
- Services offered and revenue by service line
- Key client MSAs and their insurance sections
- Current professional liability and cyber declarations
- Retroactive dates on claims made policies
- Headcount and payroll by state
- Security controls such as MFA and backups
Insurance for professional services firms, answered
What limit of professional liability do clients ask for?
It depends on the client and the contract. Many MSAs state a per claim and aggregate limit and some ask for coverage to continue for years after the engagement. SF Coverage reads the clause against your declarations and tells you whether your current limit, retroactive date and extended reporting terms meet it.
Do consultants need general liability?
Often yes. Office leases and many client contracts ask for general liability naming the client or landlord, even when the bigger exposure is professional liability. A business owners policy can package general liability and office property for firms that qualify.
What is a retroactive date?
Claims made professional liability and cyber policies only respond to work performed after the retroactive date. Switching insurers without keeping that date can leave earlier projects uncovered. SF Coverage checks the date on every claims made policy as part of the free contract check.
Can SF Coverage review an MSA before I sign?
Yes. Send the insurance and indemnity sections. SF Coverage compares each requirement with your current policies, marks it met, missing or not evidenced, and gives you a short list of changes to request from your broker or to negotiate with the client. It is a factual comparison, not legal advice.
What does an MSA check cover for a professional services firm?
The free MSA check compares each client requirement with the E&O, cyber and general liability policies you hold, including limits, retroactive dates and additional insured wording. Every requirement is cited to its clause and marked met or missing, so gaps are closed before the contract is signed.
General information. Coverage depends on the policy an insurer issues.