Читать книгу The Consulting Bible - Alan Weiss - Страница 28

You need the following insurance. Once again, if someone tells you otherwise, put your hands over your ears, shut your eyes, and scream as loud as you can. (Do not attempt this if driving.)

 Errors and omissions (aka E&O or malpractice). This protects you if a client claims the advice you provided caused loss and harm, or that you stole intellectual property and used it with one of the client's competitors. The amount of the premium for E&O insurance is usually based on the volume of your business, and a million dollars in coverage, at this writing, might cost about $3,500 for a firm with revenues in the low six figures.

 Liability. Coverage here is in case someone trips over the power cord on the computer you're using and breaks a nail, resulting in someone suing you, the computer manufacturer, the power cord supplier, the facility you're in, and the inventor of shoes. This is very inexpensive, costing a few hundred dollars for six figures in coverage.

 Disability. You're more likely to become disabled than to die while in the consulting profession. You can sometimes obtain group disability coverage through trade associations, but individual polices are available, though pricey. The earlier you do this, the better, since premiums rise according to the age you are when you take out the policy. Considerations:Waiting period. This is the period after the disability occurs during which no benefits are paid before the insurance kicks in. The longer the waiting period, the cheaper the premium.Amount of coverage. Normally, these policies will not pay more than 80 percent of normal income, and for a consultant that can be hard to prove or average.Return to your normal work. Some policies pay only until you can obtain any kind of work.Pay premiums out of your personal account. If your company pays the premiums, they are considered a benefit and the proceeds are subject to tax if they are ever needed.

Obviously, you need to obtain the type of life, health, and property coverage you need for your lifestyle. Long‐term‐care policies are also increasingly sought, and are also cheaper at younger ages. Your company can usually pay certain premiums for you, though these are often taxable benefits. Check with your tax advisors.