Imagine you’re an outside managerial consultant brought in to help a struggling business. You want to provide the best service and help the company succeed. What happens, though, if something goes wrong? Who ends up liable? Management consultant liability insurance is vital to protect you as a consultant from financial and professional missteps.
Making an Error
As a consultant, you may be hired to gather and analyze data for a project or report. If your report contains faulty information by accident, your client could lose money and initiate a lawsuit against you. Liability insurance covers your legal fees and other expenses incurred while protecting your good name.
Missing a Deadline
Say an unavoidable emergency comes up, causing you to miss a deadline. Even though you weren’t at fault, a client might decide to sue you for damages anyway. Your liability insurance helps cover those payments should you be found at fault in court.
Providing Bad Advice
No one thinks they give bad advice. However, just because you believe the advice is sound doesn’t mean your client might agree. A recommendation you give might cost a client money, at least in their eyes. Liability insurance protects you should they attempt to hold you accountable.
Management consultant liability insurance is the kind of protection you hope you never use yet will be glad to have when it’s needed.
