A consultant is a professional who renders expert advices or services in areas of management, marketing, finance, human resource, medicine, technology, engineering and many more. This liability insurance is also used by brokers, agents, service providers, architects, etc.
For a consultant, the process of consulting and the means of engaging with the public vary according to the industry and local practice. The advice that is given by the consultant to his clients can make or break his business. So, it is very important for every consultant to get their business insurance covered with the professional liability insurance.
The professional liability insurance is also called as Errors and Omissions insurance, commonly referred to as “E & O” insurance, it is designed to cover your consulting business against the claims which resulted due to financial loss. For example, if you are hired for as a financial adviser in a company, and with your guidance the company is drained into loss, then your client is liable to claim against you for his huge financial loss. Even if you do not believe that the loss was actually your responsibility, you have to hire lawyers to fight for your case.
Before buying a professional liability insurance, make sure that it fully provides the protection for you and your business reputation. Because reputation once lost is difficult to gain again. Suppose, in spite of your error free job, a person sues you in some case. In that situations, even if you have fought for many years and win the case and get a clean chit, it will take a lot of time to get back your reputation. And moreover, this long battle will only add up to your enormous legal costs. These kinds of situations can be avoided if you have professional liability policy in your business insurance.