/ BLOG

How Important is Professional Liability Insurance for Consultants?

Aug 5, 2021 · 4 minutes to read

As a consultant, you spend much of your day providing clients with advice based on your specialized knowledge and expertise. This opens you up to potential liability claims. If a client alleges that the advice you provided resulted in a financial loss for them, they could decide to file a lawsuit and seek compensation.

Professional Liability insurance for consultants is one way to help protect your consultancy and livelihood. Let’s take a closer look at what this form of insurance coverage is and how it can benefit consultants in any industry.

What is Professional Liability insurance for consultants?

A Professional Liability insurance policy (also known as Errors and Omissions or E&O insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing.

  • Omissions
  • Errors and mistakes
  • Negligence
  • Breach of contract
  • Undelivered services
  • Missed deadlines

Why consultants may need Professional Liability insurance

Professional Liability insurance for consultants may be good to have. Consultants typically give their clients advice, which could lead to a lawsuit if there is a mistake in your recommendations or your advice is misunderstood.

Beyond a need to protect your business and professional reputation, there are other reasons why consultants may need Professional Liability insurance.

1. To meet legal obligations

State law may require consultants in certain industries to have a Professional Liability policy before they can work in the state. These details can typically be found on state government websites. If you work for clients in multiple states, you will likely need to meet the separate legal requirements in each state, which may differ.

2. To meet licensing or industry requirements

Certain industries may require consultants to have Professional Liability insurance to become licensed in the field. Often, professional associations will set minimum coverage limits that its members must meet to legally work within the industry. If you are a member of any professional associations, they can usually provide details about any insurance requirements in your area.

3. To meet client expectations

Some clients may require all consultants and other contractors they work with to have Professional Liability insurance. This may be specified in work contracts that you are asked to sign before beginning a project. Clients often require consultants to have their own insurance coverage, as their business policies may not fully cover independent contractors.

Even if you are not legally required to have Professional Liability insurance, buying a policy could help you attract clients. Purchasing a policy before you are asked for proof can be a sign that you take your work seriously and are prepared to defend it and your professional reputation.

How does Professional Liability insurance protect consultants?

Professional Liability for consultants will cover legal expenses resulting from a related liability claim made by a client. These include attorney’s fees, court costs, settlements, and judgements.

Many Professional Liability policies are “claims-made” policies. Coverage may begin from a retroactive date that is agreed upon by you and your insurer. This means that you are covered for events that occurred on or after that date, providing cover for your work long after it was completed.

Your Professional Liability policy may also have an extended reporting period that goes beyond the date when your policy ends. This helps protect you for a limited period of time if a client makes a claim after you’ve ceased doing business or the policy has ended.

Is Professional Liability the only coverage that consultants need?

Every consultancy is different, and you may face risks that Professional Liability insurance does not cover. Consultants may also consider these other forms of coverage:

  • General Liability – Also referred to as Commercial General Liability (CGL) or “slip and fall coverage”, this insurance can protect your business against bodily injury or property damage lawsuits from outside parties.
  • Business Owner’s Policy – This is a convenient and affordable way for small business owners to protect against several of their most common exposures. These policies combine General Liability insurance with other types of coverage, such as business interruption and business property damage.

Finding Professional Liability insurance for consultants

Running your own small business is time consuming, especially for consultants who may be juggling multiple projects. That’s why BizInsure has made it simple and easy to find business insurance.

We’ve used technology to simplify the process of comparing and buying insurance. With greater pricing transparency, you can also be sure that you are getting a fair deal, without needing to complete complicated paperwork. Plus, our licensed and knowledgeable agents are ready to help at every step of your business insurance journey!

Visit our website to learn more about Professional Liability for consultants and other insurance products that might suit your consultancy.

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

I renewed my policies , including a few updates, through the on-line portal. It was quick, easy and completed in a few moments. I will not have to revisit thias until 12 months from now. I printed out my documents and have no questions pertaining to my renewal. It was seamless. Thank you Biz Insure
Fast, Simple, convenient
This company is very efficient, easy to manuever their online renewal, I love it and would recommend to anyone.
Awesome service!
Very easy to work with, cost effective, prompt renewal and easy to get certificates of insurance instantly. I use them exclusively for my professional and general liability insurance needs as a consultant. They simply make my insurance be easy!
VERY PROFESSIONAL STAFF. CALLS ARE RETURNED PROMPTLY!!
Huge thank you to Andrea, she was patient, kind, & caring! Got my quote fast & at best price!
Excellent and Easy service - Thank you.
Amy was a delight to work with she help me with finding he right policy for my business I can't thank her enough for her help
I purchased liability insurance for my home care agency, Unlimited Gentle Care, and the process was seamless and straightforward, ensuring that every aspect of our liability was covered. This company also offers a great value for the extensive coverage my company receives
BizInsure was an easy way to purchase insurance for my business.Kaleb especially was a great help.Thanks,Rich Valentini
awsom service, perfect price and great policy
I have purchased General Liability Insurance for the past 4 years at BizInsure for my wedding videography small business. In these 4 years, it has always been a smooth process.There must've been some sort of technical issue (potentially due to my change in address), so my policy didn't auto-renew. I called Bizinsure and talked to Paulina, who was beyond helpful. She was very polite and explained things very well. One small detail that I can appreciate is that she often said my name, which shows that their customer service is intentional about personalized communication.In just a few minutes, we updated my account + renewed my insurance for a 5th year. I highly recommend Bizinsure!
great customer services.
This company allowed us an amazing experience, including very efficient, detail-oriented, and patient guidance from their commercial sales agent, Jenifer. I highly recommend this service for anyone in need of a business insurance policy.
Jennifer was very helpful and great to work with.
Very professional, fast and reliable. I appreciate their knowledge and experience. They have made this journey easier for me.
Very easy to renew! Thank you
super quick and easy process!
I am very satisfied with Bizinsure. No regrets
Very professional, easy, and thorough application process.
BizInsure is efficient and price friendly. I definitely reccommend them to anyone. Thank you.
Great process and very efficient.
Friendly and very fast service!
Jennifer Whiscombe, is an amazing agent. She was very knowledgeable, thorough and friendly. I highly recommend.
They make it very easy to buy insurance and renew.
As a business owner I love not wasting time. Thank you so much for giving me more time
Very straight forward, the cost of coverage amount made sense, simplicity was appreciated.
Always easy. Thank you.
A Company that is easy to deal with and that I have used for several years. I appreciate the continued support.
Very easy and affordable!
Responsive and professionalCompetitive price. I highly recommend Bizlnsure as an insurance provider
Your service is easy to renew as needed and your company informs the client in advance for renewal.
js_loader
Google Rating
4.7
Based on 296 reviews
×
js_loader