Business Management, Marketing, and HR Consultants provide valuable services to other businesses. Your assets are in jeapordy in the event one of your client alleges an error or omission on your part. If you are a sole proprietor it can be even worse since all of your personal assets, including your home and future earnings, are at risk. Protection is afforded for these errors or omissions, actual or perceived, in the form of professional liability. Professional liability is also known as Errors and Omissions Insurance or "E&O". In the medical and legal professions, it is also called "malpractice" insurance. Many consultants are under the assumption that their liability is limited to the value of the contract or even that the contract itself will protect them from a lawsuit. Nothing can be further from the truth. If you are served with a lawsuit by a client who feels that your consulting services provided bad advice or that you failed to provide certain information, you will be required to respond to that lawsuit. The cost to defend yourself, before any judgement is made, can be tens of thousands of dollars. Click the link below for claims examples:
E&O Claims examples
In many cases, E&O is required by contract. In some cases, a contract may also require General Liability insurance. We have relationships with carriers that specialize in E&O insurance for consultants and in most cases can provide E&O and General Liability on one policy at an affordable price. However, even if E&O isn't required by contract, having a policy in place will put your business in a higher caliber and make you more attractive to prospective clients as a professional who cares enough to carry E&O insurance. Make it a selling point! We've seen cases where a consultant was awarded a contract over another simply because they carried insurance.
We can also tailor a policy to your needs. Whether you need a small amount of coverage or a contract requires one million dollars in coverage, we can tailor a policy to suit your needs. Not to worry, E&O is affordable. Prices for consultants range anywhere from $1000 to $3500 per year, give or take, depending on the type of consulting activities you are performing, your gross receipts, and the limit of liability you need.
The best part about E&O is the peace of mind it provides knowing that even if someone alleges wrongdoing on your part even when you did nothing wrong, having a policy will pay the costs to defend you. Its like having your own legal team on your side in the event of any allegation!
To get the right auto insurance coverage, simply fill out our Quote Form or call us to speak with our insurance agents now.
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