Consultant’s Professional Liability Insurance
Errors and Omissions (E&O)
Types of Consultants
Add-Ons and Bundles
Consultant’s Professional Liability Insurance Covers Various Professionals
- Strategy Consultants
- Management Consultants
- Operations Consultants
- Financial Advisory Consultants
- Human Resources Consultants
- IT Consultants
- Risk and Compliance Consultants
- Real Estate Consultants
- Business Consultants
- Environmental Consultants
- Software Consultants
- Sales Consultants
- Marketing Consultants
- Image/PR Consultants
- Social Media Consultants
- Career Coaching Consultants
- Legal Consultants
- Wellness/Fitness Consultants
Why You Need Consultant’s Professional Liability Insurance
Without purchasing Consultant’s Insurance, you won’t have any protection when someone files a claim against you or your business. If your claim is taken to court, this means you’ll have to pay for the defense and attorney costs. Not only that, but claims can cripple your reputation as a consultant. And, if you aren’t able to pay the claims made against you, then they can destroy your business.
At We Care Insurance we recognize that that’s not an ideal situation for you. As a consultant, you should be focused on one thing: helping out businesses, without worrying about additional expenses.
This is why it’s so important to purchase Consultant’s Insurance. Because it can eliminate unnecessary worries and expenses for you and your business.
Here is what Consultant’s Insurance covers:
- Faulty advice – You give a client your advice but that information causes them to lose money.
- Negligence – You fail to perform a specific duty outlined in your contract with the client.
- Misrepresentation – You fail to catch flaws in an experiment you conducted for the client.
Things to Consider Before Purchasing Consultant’s Professional Liability Insurance
Consultant’s Insurance works on a claims-made basis. What does that mean? Simply put, it means that the date the claim is made matters. Why? Because, it determines which policy term will be in charge of responding to the claim.
Essentially, the date of the event doesn’t matter just the date the claim is being made.
In addition, insurance policies typically have a retroactive date. Basically, this covers claims between the retroactive date and the policy start date.
If you want to ensure that your past claims are covered, you’ll want the retroactive date to be the date that you started your business.
Thus, it is important to take this into consideration when you are buying Consultant’s Errors and Omissions Insurance.
What you should know about legal representation and defense.
Insurance companies usually provide defense attorneys on your behalf. Why? Well, consider this for a moment:
If you were to provide your own attorney then that attorney may be over the price of what insurance can cover.
Further, this is why insurance provides you with an attorney. It’s because they will find someone who will be covered based on your policy. But, this is also because insurance usually has negotiated rates with law firms.
Here’s another thing to consider: defense costs are taken into consideration when paying for damages. What does this mean?
Let’s refer to an example. Let’s say you have a $2,000,000 claims limit. If the defense costs $1,000,000 then that means you only have $1,000,000 left to pay the damages.
This is something to consider when choosing your claims limit.
Does my company protect me? If so, to what extent?
Before making any type of insurance purchase, double-check with your employer to make sure that your company doesn’t already offer you coverage.
Obviously, if your company already protects you then you don’t want to accidentally purchase something additional that you don’t need.
But most importantly, you want to make sure that your company protects you as an individual employee. In many scenarios, the company buys policy for the entire organization, but that policy doesn’t necessarily cover you as a specific employee.
If you aren’t fully protected, or as protected as you’d like to be, then purchasing Consultant’s Insurance may be in your best interest.
What if I own my firm?
If you own a firm then you may want to look into other policies that protect you and your employees.
Also, owning a firm can have an impact on your insurance quote. So, be sure to click “Customize Quote” below to see what you’d pay.
Get a free quote to see how much you’d pay
There are a range of factors that may influence your quotation. For example, your area of practice, your location, and your salary can all have an impact on your insurance quote.
Above all, it is our goal to give you a fair and accurate estimate. Below, we’ve provided a place where you can input this information.
So, if you’re interested in customizing your quote to see what your rate would look like, click on “Customize Quote” below.
Other Types of Insurance for Consultants
Even Professional Liability won’t cover certain work mishaps. As a consultant, you’ll want to check out some of these policies. Especially if you want to make sure you are additionally protected.
General Liability Insurance
This type of policy covers more businesses than a BOP would. It covers customers and those who are affected by the business’ operations.
Worker's Compensation Insurance
Firstly, the price of this policy depends on the number of workers in your business and the occupational risk. This means it can range anywhere between $800-$1200 per year. More importantly, however, is that it covers medical bills from job-related injuries and wage replacements for recovery time.
A policy like this is especially helpful for those working in the technology sector. It covers data breaches and cyber theft in the case of data hacks. Notably, it pays for the legal fees, rebuilding costs, and reputations that are associated with these types of claims.
Many insurance plans are commonly bundled together for simplicity and a cheaper rate.
Business owner’s policy (BOP)
A popular option for small businesses like clothing boutiques that combines Commercial General Liability insurance with Commercial Property insurance, usually at a cheaper price than if the two were purchased separately.
Consultant’s Professional Liability Insurance FAQ
Is it necessary for me to purchase Consultants Insurance?
No, it is not necessary. However, there are many risks that will accompany you and your business if you don’t have Professional Liability. You will have a greater risk for lawsuits, for example, and you could also run the risk of losing your business.
At the end of the day, it’s always better to be safe than sorry and purchase Professional Liability so that you don’t expose yourself to unnecessary risks.
Is there a difference between Errors and Omissions Insurance for Consultants and Professional Liability Insurance?
Nope, there isn’t a difference. In fact, Professional Liability Insurance and Errors and Omissions Insurance mean the same thing, and they offer the same coverage. Professional Liability Insurance is just another name for Errors and Omissions Insurance.
When should I buy Errors and Omissions Insurance?
Ideally, you’ll want to purchase this type of policy as soon as you open your business. Or, similarly, as soon as you find out that your company doesn’t cover you as an employee.
That is to say, when this policy is enacted it covers incident claims and lawsuits. On the contrary, if you don’t have the policy, it will not cover any incidents or lawsuits.
What payment methods do we accept?
We accept payments through a mortgage, direct billing through mail, EFT (Bank Account), debit and credit cards.
How can I file a claim?
We strongly recommend calling us before the insurance carrier directly about a claim. You may not want to file a claim depending on your insurance plan. However, we will assist you in filing a claim the best way to make sure you take the least amount of damage possible to your insurance score.
After talking with us, you can call the insurance carrier or let us call them for you.
If you can’t find your answer here, please don’t hesitate to ask a representative through our messaging system or email.