As a management consultant, the advice that you give a business is crucial. Unfortunately, despite your expertise, there will be times when companies take losses after following that advice, and some companies may choose to pursue lawsuits over those losses. By taking out professional liability insurance for consultants, also known as errors and omissions insurance, you can protect yourself against this kind of situation.
What Professional Liability Covers
Professional liability insurance can cover various expenses associated with defending yourself in a lawsuit. Most policies cover attorney fees, and some even compensate you for work time lost. Some policies will cover work done before the policy or claims that are made after coverage ends, but other policies do not. Many insurers can draft a customized policy based on factors like your budget and line of work.
Additional Benefits of Professional Liability
Often, clients will require a consultant to have a set amount of professional liability insurance for consultants, so having a policy already in place can be convenient. Professional liability insurance may also apply when circumstances beyond your control lead to a financial loss associated with your advice. If you work in a high-risk or high-profit industry, it is virtually essential to take out professional liability insurance.
What To Do When Choosing Coverage
Before signing up for any policy, it is important to fully understand deductibles, coverage limits, and time considerations. Better yet, you can benefit from working with an insurance provider who will create a customized professional liability policy to ensure that your interests are completely protected.