/ 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

First of all the agent I spoke with was very kind and helpful. Her name is Andrea. I appreciate the easy and quick online application to purchase my insurance.
I worked with Amy on getting professional insurance and she was fantastic! Some of the best customer service I’ve experienced in a long time. She was diligent and supportive, but never pushy.
The process was smooth and everyone answered questions along the way as needed. Andrea’s follow-up was excellent. Thank you!
Jen was awesome
I have been with Bizinsure for many years and they are always up to date with the latest policy information and the most competitive rates!
My interaction with the agent was very pleasant and she answered my questions. She also responded very quickly when I had questions.
BizInsure understood exactly what I needed and provided an affordable quote. The process was easy and I'm glad I used their services!
Our company has been with BizInsure since 2020. we are very happy with the service they provide.
Just started but the process was easy. Agent was kind and the price was great.I will see how the service is going forward, but starting was very easy and inexpensive.
Customer service was great! I got the help I needed!
Super A rated and affordable coverage.
Dina and Ashleih were so helpful! They made our package work for us. Grateful for the quick service.
I want to thank you for making my insurance search so simple and efficient. I also appreciated the easy communication options, which helped me make the right purchase decision. I'm really grateful for your company's support!.
Jenifer S. was the agent that I worked withi to secure general liability insurance. She was very knowledgeable, helpful and worked diligently to ensure that.my coverage needs were met and for a great price. I would definitely recommend her to others as she was a pleasure to work with.
The agent was very knowledgeable and was very quick in handling my request.
Good customer service
Fast friendly professional service
Jennifer was fabulous. Quick & easy quote for GL/PL coverage and saved me money over previous policy. My wife referred me - she's always right!!
Representative was very kind, helpful, and educated me well. I especially appreciate their professionalism and patience.
Been with this company for about 4 years. They have provided me with excellent coverage, user-friendly technology and very low rate. As an accountant, they are my first choice for my small business clients.
Absolutely the easiest, absolutely the fastest, the best I can tell the lowest cost. For many businesses, Insurance is a dirty word, because it's complicated and we're actually so busy minding our business that when complicated insurance issues get in the way, it slows us down. But not with these guys. Biz Insure LLC has figured it out and thank goodness they have...
Thanks, you for your service
I want to say thank you for all the hard work the agent put in with me. She was glad to hear from me. Very pleasant to deal with and solved my needs
Thank you for your professionalism and patience and helpfulness with my insurance needs for my new business. Thank you, Amy Raley as well for all of your help - you are sincerely appreciated and you are an asset to BizInsure LLC!
I have been using Bizinsure for several years and find the ease of renewing as well as generating additional insured certificates to be easy and useful, especially as a sole prop. thank you
Agent was precise and clear with explanation. Getting a quote was fast and easy. Thank you
Easy to renew Policy
BizInsures insurance is easy and affordable. Employees are well courteous and professional.
The renewal process is fast and efficient.
Easy to get Quote and start insurance with the recommended Insurance company. Not sure yet on services there after.
Yes, super easy!
js_loader
Google Rating
4.7
Based on 358 reviews
×
js_loader





    This will close in 0 seconds