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What Is Professional Liability Insurance for Consultants?

Updated: Apr 14

As a consultant, you have an important job. At Inpro Insurance, we’re here to help protect it. We offer the wide range of coverages you need to stay successful in your career. In your line of work, one of the most important things to have is Professional Liability Insurance or PI (Professional Indemnity). This will help keep you protected in the professional services you provide.


Consultants work hard for their clients, helping companies achieve their business goals. However, during this process, clients may become dissatisfied with their consultant’s performance, resulting in a lawsuit. That’s why having is so important. PI, also called Errors and Omissions insurance (E&O), can help cover claims of:

  • Errors

  • Omissions

  • Negligence

  • Misrepresentation

  • Inaccurate advice


Without professional liability insurance for consultants, you and your business assets can be at risk. Consultant insurance is a small expense that can go a long way in helping protect you while providing services to your clients.


Do Consultants Need Liability Insurance?

If you provide services directly to customers, you should add professional liability insurance coverage to your business consultant insurance plan. If someone sues your business and claims you made a mistake in the services provided, without coverage, you would have to pay legal costs out of pocket.

For example, you’re working with a company trying to grow its operations. The strategies you propose don’t work and the company takes a big loss. As a result, they sue your consulting business. Professional liability insurance can help cover your legal fees and costs to defend your business. It can also help pay for settlements and judgments awarded with the lawsuit, if those are not an exclusion in your insurance contract.


Different types of consultants can benefit from consultant liability insurance, such as:

  • Business and management

  • Business communications

  • Market research

  • Media

  • Public relations and crisis management

  • Business and leadership coaching

  • Career coaching

  • Corporate training

  • Economic research

  • Expense savings

  • Human resource

  • Organisation structure

  • Wedding

No matter how many years of experience you may have as a consultant, mistakes can still happen. This means you face a liability risk at any moment of your workday. Giving the wrong advice can cost clients a lot of money and they can sue you for a mistake. That’s why it’s essential to have professional liability insurance to help protect your business.

Risks That Consultants Face by Not Having Professional Liability Insurance (PI)


Consultants face many day-to-day risks, but not having professional liability insurance adds an additional risk of lawsuits. Without coverage, you can face expensive attorney fees, Court costs and defense expenses.

There are many professional liability risks you face as a consultant. These examples show some of the common ones we cover:

  • Giving bad advice to a client that results in them losing money. For example, if you try to help a client increase their sales but your plan causes them to lose revenue, they can sue you.

  • Not completing a job according to the agreed upon terms. Let's say you own a market research firm. You give your client advice based on research your firm conducted, but it causes them to lose money. Your client sues you after finding out the research was flawed.

  • Forgetting something in the services you provide. If you forgot to do a job that your client expected, they can sue your business.

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