Consultants work across numerous industries, in various types of work settings. Consulting is also an increasingly popular line of work, particularly when it can be completed remotely. A consultant may be entrusted with contributing significant input to a design or project, and may be blamed if the project fails or runs into obstacles. For this reason (and potentially others), it is essential for high-volume consultants to carry consultant liability insurance.
What Risks Do Consultants Face?
Consultant risks may vary depending on type of industry, whether work is done remotely or in-person, and other factors. In general, however, consultants may face liability for the following situations:
- If contracted services by the consultant lead to a problem in completing a project, or have other unintended negative consequences — for instance, if design input on a building project produces a structural defect
- If a client has an accident when meeting with a consultant on the consultant’s property
These are broad categories; in theory, a consultant may be accused of liability for any relevant incident that harms a client — for instance, if private client data is stolen from a consultant’s computer.
Consultant liability insurance — in particular, general liability and professional liability insurance — helps protect your business and assets, and ensures you can fully devote your time to your clients’ projects.