Consultants work in a variety of industries. Other professionals rely on your agents to provide valuable advice in creative and business projects. When you offer professional advice, there is always a chance that you could make a mistake or your advice might not go according to plan. For this reason, you need to have consultant liability insurance.
Why Consultants Require Professional Liability
Every industry comes with different risks and because of this, different industries require different professional liability coverages. As a consultant, you could risk several types of lawsuits deriving from several mistakes. For example, a data entry mistake could cause you to give the wrong financial advice. Additionally, if you work with marketing agencies, bad advice could lead to a slander lawsuit.
What Consultant Professional Liability Covers
There are different types of liability coverage. Professional liability is also known as E&O insurance or errors and omissions insurance. This protects your consultants if a client accuses them of not making good on their business promises. This is a safeguard against any violations of good faith, general negligence or unintentional mistakes.
A lawsuit can break your consulting firm. Consultant liability insurance takes into consideration the types of risks that consultants face. You can choose policies that are tailored to your business needs.