Make sure before you do anything with small business insurance, you check with an accountant or lawyer to get specific information.  Still, the following types of small business insurance have worked well for many computer consultants.  

Which Type?

You should get general liability and professional liability small business insurance policies for your services.  The professional liability insurance needs to have an errors and omissions insurance rider.

How Much is It Going to Cost?

Small business insurance will vary in price, but the average is about $3,500.  The cost is usually based on the size of your company in regards to employees, sales volume and your risk potential.  Make sure you look at the categories really carefully with your agent before you get pigeon-holed into a specific type of classification.  Sometimes you might be misclassified as a software developer when you should be in the network installer or reseller category.  

Subcontractors and Small Business Insurance

Each of your subcontractors needs to have small business insurance of both the professional and general liability variety.  It is not your job to cover them.  If you do, you will be potentially offering them benefits like those of a regular employee.

Small Business Insurance:  The Next Step

To get started with small business insurance, talk to your insurance agent.  If you have one that deals with your property and contents insurance needs, ask him/her plenty of questions and also talk to your accountant.  

Added By:  Computer Consulting 101 Professional Kit