How do you know if you need professional liability insurance for consultants? Here’s a simple test. Answer these questions. Do you provide advice to your clients? Do you charge for your service? Are you required by law to have insurance? Answering yes to any of these questions means you need to protect your business against the damages of lawsuits. You may have the best clients in the world, but that doesn’t mean they won’t turn against you if your advice goes south.
An errors an omission policy protects you in cases of negligence, whether or not you have actually made a mistake. It can also protect you against the mistakes of others in your employ. You can obtain worldwide coverage, so if you have international clients with different values and expectations, you know are protected. Don’t forget to cover past work with a retro-active policy.
Many claims may not even have any basis, but that does not negate the costs of your defense. You still have to provide experts to back up your actions and pay for your defense attorney who negotiates on your behalf. Professional liability insurance for consultants covers those costs and leaves you free to focus on your business. Talk to an insurance specialist who understands the needs of a consultant in your industry. Get tailored coverage to make sure your activities are covered in the event of a costly lawsuit.