Professional Liability Insurance for Consultants

Why You Need Professional Liability Insurance as a Consultant

Consultants face a wide range of risks because they provide advice to their clients and are often privy to critical company information and the functions of their client’s business.

Another reason to have professional liability insurance as a consultant is to protect future business opportunities. Certain industries and customers will require proof of insurance from consultants before a business contract is signed.

Below are a few situations where a comprehensive consultant insurance policy works for you.

1- Bad advice

Consultants are hired because of their specific expertise. If a client feels that your recommendations have harmed their company or cost them money, they can sue you.

2- Reporting errors and compliance

Management consultants and human resources may be asked to analyze and gather data for reports and projects. Your client could be sued if they enter incorrect numbers or miss an important detail. Consultant insurance for professional liability would include defense costs and attorney fees if you’re sued by your client.

3- Missed deadlines

Clients may sue you if your work isn’t completed within the agreed time frame. In this scenario, a professional liability insurance policy for consultants will protect you from being faced with legal fees and other costs from a lawsuit.

Readmore:

• Why Consultants Would Benefit from a Professional Liability Insurance Quote
• The Average Cost of Professional Liability Insurance: All You Need to Know
• Do you need Professional Liability insurance?
• Ultimate Guide to Errors and Omissions Insurance

Find out how to protect your business and to get set up with a PLI policy today.

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What is the Cost of Professional Liability Insurance for Consultants?

Each consulting firm is different, which means professional liability insurance costs may vary. Your insurance rate is determined by insurance companies using a variety of factors, including your:

• Claims history: a clean record can help lower your insurance rates.
• Type of business and its potential risks.
• Limits on coverage: higher limits can lead to a higher premium.
• Business experience: more experience is perceived as less risky.

There is no way to tell how much your policy will cost until you get a professional liability insurance quote for your consulting company. Get a free one now with EasyCover.

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Other Essential Insurance for your Business

If you require additional insurance for your business, besides professional liability insurance, review your options below.

Commercial General Liability Insurance (CGL)

CGL insurance protects your business against claims arising from third-party bodily injury or property damage. Your CGL policy will cover you if there are legal proceedings against your company and you need to pay for legal defense and settlement costs. Learn more.

Cyber Liability Insurance

Cyber insurance is essential for many organizations as it protects your business from data breaches and other cyber threats that could affect your systems or network. Incurred expenses could include notifying clients about breaches, credit monitoring, cyber theft demands and public relations. This coverage is most important for consultants who handle sensitive data or advise clients about IT systems and cybersecurity. Learn more.