Why Management Consultants are at the Highest Risk for E&O Insurance Claims

Errors and Omissions claims only involve claims of professional negligence. For this reason, it is vitally important that management consultants carry this coverage continuously. Since the majority of the work that management consultants provide falls under the category of “professional consultation,” it is errors and omissions claims that will make up the bulk of any suits brought against you or your consultancy.

As a consultant, you must also pay close attention to the factors under your control that can reduce your risk of being charged with an E&O claim.

It is important to note that errors and omissions coverage is not a part of your general liability insurance policy. Failure to make this distinction could result in a lack of coverage, leaving you open to legal suits. No matter how thoroughly and professionally you conduct your management consultancy, there is always the risk of an errors or omissions claim being brought against you.

For more information regarding errors and omissions insurance for management consultants, please visit Business Insurance Now or the TechInsurance Small Business Center.