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Consultant Liability Insurance – Why Is It So Important?

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Consultant Liability InsuranceConsultants are paid for making their clients’ businesses better which means that expectations and risks are high. Marketing consultants’ clients depend upon them for forging their company’s reputation and perception, while clients of management consultants look up to them for organizing their business for its smooth and efficient operation. If there is a mistake in these tasks, it can hamper client’s growth and even impair their company’s reputation. In such a case, the client may turn to the courts to sue the consultant. In such scenarios, Consultant Liability Insurance steps in.

What is Consultant Liability Insurance?

When there is something wrong with the client’s company’s reputation because of the consultant’s mistake, an independent consultant may incur heavy penalties. Consultant liability insurance saves them in such difficult situations. Thus, in case if a client sues you for mistakes while giving your services or for professional negligence, your consulting agency can get the financial support to bear the high expenses of attorney’s fees, court fees and even judgment or settlement fees.

Consultant Liability Insurance Protects Consultants

Consultant Liability Insurance is also called Errors and Omissions (E & O) Insurance and is very necessary for consultants to protect them against the risk of court cases challenging the delivery of your professional services. If your client sues you for being professionally negligent, providing incomplete, shoddy or improper work, making mistakes or for the failure of your business to do professional duties, your consultant liability insurance steps in to save you from the high attorney fees, one premiums, judgment or settlement costs and other court expenses, up to your policy’s limits. Even in case if the claim is meritless, the coverage offered by your policy will ensure that you don’t need to pay from your pocket.

Why Consultant Liability Insurance is Important for Consultants?

Consultant liability insurance is important because your clients’ opinion about the work performed is the one which will determine if they would decide to sue you if project become unsuccessful or they don’t get the outcome they expected. In fact, in most cases, clients turn to the courts only because they want a scapegoat rather than because of your work.

Even, most of the contracts with your clients require you to have consultant liability insurance. This is because, if you are actually responsible for an error, your insurance coverage will guarantee that you can pay for the financial losses your client suffered because of your mistake.

It should be remembered that your consultant liability insurance will protect you only during the life of the policy; therefore it’s important that you have adequate consultant liability insurance coverage before you start your work. Based on the state laws, a client could sue you for professional negligence even months after you would finish their work on a certain project.

Visit ConsultantInsurance.com to get the best coverage at best price because they offer you several quotes from leading insurance companies which you can compare and find the best one for you.

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