What Can They be Held Liable for?
A typical claim against a consultant might stem from how they handled a project for a client, and whether or not they fulfilled their professional duties as contracted. As an example, if the consultant made a mistake that caused delays or losses during the launch of a product or service, they may be taken to court for the amount of those losses. The client could claim that the consultant was the cause and should therefore be held liable. If you are a consultant, we recommend that you evaluate the type of consulting that you do. If you think that there is a possibility of an error in your work causing a financial setback for the client then you should obtain a professional liability insurance policy for consultants. At the very least, call for a free quote on the policy designed specifically for your profession.
A Cost Effective Solution
Many consultants are not covered under a liability insurance policy because they think that they can’t afford it. Others simply don’t believe that it could happen to them. The truth is that everyone is capable of errors and omissions. As an independent business person, you don’t have any fallback if a client decides to sue. If you don’t defend the claim, you could be wiped out by a judgment. On the other hand, if you hire an attorney to defend you in court, the cost is bound to be far greater than a professional liability insurance policy designed for consultants.
Inquiring about the cost of a policy and how it can protect you does not require much effort, and getting a quote is free and easy. You insure your health, your house and your car, so why not insure your livelihood as well?