Solo practice
Whether you work under your own name, a DBA, or a single-member LLC, your consulting practice needs its own coverage — separate from any past employer’s policy.
If you previously consulted as an employee of a firm, that firm’s Professional Liability / E&O policy generally stopped covering your work the day you left — it doesn’t follow you into independent practice, and it doesn’t retroactively protect work you do on your own after departure. Independent and self-employed consultants need a policy in their own business’s name from day one of solo client work.
Many solo consultants start as a sole proprietor or under a “doing business as” (DBA) name before later forming a single-member LLC. Insurance can generally be written for any of these structures — the entity type affects how the policy is titled, not really whether coverage is available. If you’re still deciding on a structure, your insurance agent and your attorney or accountant are looking at two different questions, and it’s worth asking each separately.
Most independent consultants work from a home office, which doesn’t typically complicate Professional Liability / E&O coverage. If client meetings occasionally happen at your home, ask your agent whether that changes your General Liability needs — it depends on frequency and how the space is used.
Independent consultants working with larger clients often encounter the same insurance clauses that apply to consulting firms — a minimum Professional Liability / E&O and General Liability limit, sometimes additional insured status. Being solo doesn’t generally exempt you from these requirements. See our Requirements page for what to expect.
Many independent consultants start their practice while still employed elsewhere, or transition directly from a W-2 role at a consulting firm into solo work. It’s worth being precise about the timeline: coverage generally needs to be in place before you begin any paid independent client work, not once you’ve fully left your prior employer or once your first invoice is sent. If you’re planning the transition, it’s reasonable to get a policy in place a little ahead of your first solo engagement.
If your independent practice grows to the point of bringing on a subcontractor, associate, or first employee, that’s a good moment to revisit your coverage with your agent — staffing changes generally affect both pricing and how your policy is scoped, and it’s easier to adjust proactively than to discover a gap after the fact. See our cost guide for how staffing factors into pricing.
Some independent consultants build their practice gradually, taking on a client or two while still working a primary job elsewhere. Even part-time or occasional independent consulting income generally warrants its own coverage once you’re billing clients directly under your own name — the exposure exists whether consulting is your full-time livelihood or a side practice, and coverage can typically be scaled to modest part-time revenue.
No. A former employer’s Professional Liability / E&O policy generally does not extend to your independent consulting work, even work similar to what you did as an employee. You need your own policy from the start of solo client work.
No, coverage can generally be written for sole proprietors and DBAs as well as LLCs. Talk with your attorney or accountant separately about entity structure — that’s a different decision from insurance eligibility.
Not usually for Professional Liability / E&O. If you host client meetings at home with any regularity, mention that to your agent so General Liability is scoped correctly.
Yes, most client insurance clauses apply regardless of company size. See our Insurance Requirements page for common terms.
They describe the same audience — a solo consulting practitioner without a larger firm behind them. We use both terms because clients search for coverage both ways; the underlying policy is the same.
Business Consultant Insurance connects you with licensed agents who build your custom quote — typically back the same business day, subject to underwriting.
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