October 2003

Question

I coordinate training at various statewide locations. I am trying to determine what insurance coverage is necessary for me, as a consultant. An insurance agent has recommended that I obtain liability insurance. I am wondering if this coverage is routine for training consultants.

Answer

There are two types of liability insurance: professional liability and business liability. Professional liability, sometimes called "errors and omissions" 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 pay any settlement agreement or judgment up to the policy limit.

Business liability, commonly known as a Comprehensive General Liability Policy (usually referred to as "CGL") covers a wide range of accidents, including premises liability claims and injuries to third parties. It does not cover your own employees or property.

You asked if this coverage was routine for training consultants. I would say, not "routine." Many consultants are NOT covered by insurance. However, this does not say that it isn't important. Both are important if you need them. I always suggest that you have an insurance agent on your team to assist with business decisions and this is why. If you have an insurance agent that you trust, follow the advice that you are given. Also, check question #3 in the September 2003 column.

Question

I am currently charging an hourly rate of $50 to $55 for senior instructional design work (mostly WBT) in both the commercial and government sectors in the Washington, DC area. Is my rate competitive and how much higher can I go?

Answer

I do not know what is competitive in your area. You need to research this by asking others who do the same type work you do. If you compare yourself to internal designers, you should be charging about three times their hourly salary. One practical clue should be the ease with which you obtain contracts. If your proposals are readily accepted it might be because you are the low bidder. If your proposals are not accepted, you should always ask for feedback. I doubt that your prices are too high. Though you may want to have two pricing levels, a higher one for private industry and a lower one for government.

Question

I am trying to develop a standardized (flexible) salary schedule for our contract trainers. We also have instructors (professional) who conduct professional certifications for lawyers, teachers, nurses etc. Where can I find benchmarks for both professional and corporate contract trainers by industry?

Answer

I do not believe this exists, but if it does, I would be interested in the data. Let's ask our readers. Do any of you know whether this information is available? consultant@astd.org

Question

What is the rule of thumb for estimating the time it takes to complete a project? For example, I have heard that for leader-led course design/development to figure 40 hours of design for every 1 hour of training. Is this the norm? What is the rule of thumb for designing CBT/WBT?

Answer

It depends. I once heard Gloria Geary say she would scream if she heard that question one more time! She was simply making the point that it is impossible to determine without more information. The answer is, "it depends." And most of us don't like that answer. It depends on what type of training, what type of media, how much knowledge the subject matter expert actually has, whether portions of the training can be adapted from something else, whether it is a new or existing course, whether the process is standardized, whether you are designing a train the trainer, and if it is CBT a multitude of other questions are added. Well, you get the picture. It depends. The 40 hour figure that you mention is one that has been around for a long time. I tend to suggest 40:1 plus or minus to design from scratch and 20:1 to modify when working within large organizations. I know good designers, however, who can whip out a great design in much less time. With regard to CBT/WBT, I contacted a couple of designers who said, you guessed it, "It depends! Is it straight drill and practice or simulation based?" Their estimates ranged from 150:1 to 450:1. Sorry I could not be more specific, but, it depends . . .