Your Consulting Business and Professional Liability Insurance

It is best to get errors and omissions insurance if you are in the consulting profession. Here are some instances where this professional liability insurance might kick in.

Human Error

You can be the best consulting businessperson on the face of the earth, but you will eventually make a mistake. If you are lucky, that mistake will be small and will not matter in the scheme of things. However, if you are not so fortunate, a mistake that was only slightly off of perfection can still have dire consequences. If you are consulting in a construction or manufacturing business, your mistake could cause someone physical injury. In most any business, any mistake can cause loss of income.

Changes in the Industry

As someone involved in the consulting business, you will surely try to keep abreast of the latest innovations in your industry. Most conscientious associates would want to be on the cutting edge. Yet, most industries are large enough that you can miss new discoveries about the systems or processes used within them. If you do not give your client the most up-to-date consulting work, and an accident could have been avoided with the newest knowledge, you would be protected for that omission under professional liability.

Consulting to Fix Someone Else’s Mistakes

When an employee or subcontractor of a business makes a mistake at a company, management might eventually throw up their hands and look for someone to help them fix it through a consulting service. When you step into a situation like this, you take on the risk of dealing with preexisting problems that might be difficult to distinguish from problems you might cause. Even if you know your work is above reproach, it is good to have professional liability insurance to make sure you will not have to pay for someone else’s mistakes.


When you are in consulting, you will be given a job to do. The job will be explained to you by an owner, a manager, or another consultant. All you can do is to provide your services for the task that is presented to you. If someone has not communicated the project to you correctly, you need to be protected from liability should someone blame you for the mistake. Whenever you might make an error or omission for any reason, your consulting business will survive on to the next jobs if you protect yourself with professional liability insurance at the start.