There are 30.2 million business in the U.S., according to the U.S. Small Business Administration (SBA), and every single of those businesses is probably protected in some way with professional liability coverage. Every business needs this kind of insurance, including consultants.
With 659,200 consultants employed in the U.S as of 2017, according to Statista, it’s imperative that one has protection for the problems that come. Insurance covers the rest. If there’s litigation against any of your clients, you’re going to want coverage. There’s many reasons why a business should want this insurance. Don't believe us? Here are some of the reasons why professional liability insurance is a must-have for consultants.
Why You Need Insurance
Consultants should set the stage for other businesses, leading by example, no matter what their business focus may be. Companies hire consultants in order to assist them with their business, meaning they need to be reliable, and a reliable company should have the proper coverage. Your business is held to a certain standard and you need to make sure that you meet it every single time. Without this insurance, your entire future can remain unprotected. That means if something happens, you could lose everything.
What is Professional Liability Insurance?
Also known as errors and omissions (E&O) insurance, this type of insurance covers your business from risks that are not covered by general commercial liability insurance, which are two different types of policies. This means they cover different things. For example, getting this insurance is like a doctor getting malpractice insurance. This means it’s a standard thing that you should be purchasing as a business owner. Some of the things professional liability covers include:
- Documentation errors
- Verification mistakes
- Violation legal or state laws
- Ill advisement
- Exposing proprietary company information
- Misrepresenting products or services
- Theft, poor behavior or ethics, breach of contracts, or mistreating any aspect of the client or business
- Failing to protect client’s property or data
The Risks of Not Having Insurance
There’s many risks you face as a business owner with no professional liability insurance. There’s a greater risk for lawsuits and there’s also the risk of losing your entire business. People can take advantage of your company when you don’t have the proper insurance to protect yourself. Make sure that your employees are aware that they are covered if something happens to them on the job.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.
