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What Is Professional Liability Insurance for Consultants?

Updated: Apr 14, 2022

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