February 2003
Question
Do you know of liability insurance necessary and resources I could contact to obtain more information?
Answer
Business liability insurance is a policy commonly known as Comprehensive General Liability Policy (often referred to as a CGL). This insurance covers a wide range of accidents, including premises liability claims and injuries to third parties, but does not cover your own employees or property.
You may also be referring to professional liability coverage. This is important for a consultant whose main product or service is advice. If your advice turns out to be bad and causes injury, the insurance carrier will provide a defense attorney, pay court costs, costs of litigation and any settlement agreement or judgment up to the policy limit. Contact your insurance carrier or your attorney to discuss either of these.
Question
I have the opportunity to work with one of the colleges in my town. They have a training center that is not being used. They want to provide computer training to the local business. I have already worked with them and they liked what they saw. My question is, in the past I did it as a hobby and had a full time job. Now I will be doing it as a consultant, I am starting my own business. I charged them by the hour $50/hour. They want me to grow the business for them and also to teach conversational Spanish. What kind of contract do you recommend I sign with them. Thank you for any help you can give me.
Answer
Wow! Looks as if you are really a valuable asset to them. Since you are already charging a fee of $50 per hour it will be very difficult for you to change that. Like many consultants, our clients get set on a specific fee and then can't change. If you feel you are worth more than what you are currently charging, now is the time to raise your fees. I would continue to charge an hourly fee for providing computer training and teaching Spanish. As far as growing the business for them, I would charge a commission. That would seem fair to both of you. You don't explain what you are to grow, but you could determine the dollar value of the growth and then settle on a percent that compensates you appropriately.
