While working in the consultancy industry can be lucrative, it also has its share of risks. When it comes to protecting your business’s finances, insurance products are a necessity. No consultant should skip out on liability insurance.
What Is Consultant Liability Insurance?
Liability insurance protects you if a client files a lawsuit for services that you performed. As a consultant, you require specific solutions, based on the type of consulting that you perform and the size of your business. Consultant liability is designed to meet your needs.
Why Do Consultants Need Liability Insurance?
A lot of consultants mistakenly believe that business agreements are enough to protect them against lawsuits. Even if your contract states that you cannot be sued for more than the money you earned, a client may still be able to file a claim. When you don’t have liability insurance, you face court costs, defense expenses and attorney fees.
Common liability risks include:
- Flawed research causes a client to lose money
- Forgotten services you didn’t provide
- Bad advice causes a loss of revenue
Even in a professional setting, people make mistakes. Lawsuits can happen, regardless of how much effort you put into risk mitigation.
Consultants require specific insurance options for a variety of risks. Regardless of your business size or the type of consultations that you perform, liability insurance is critical for your business’s success.