Your client accuses you of causing their company’s financial loss last month. Are you protected with the right business insurance?
A business consultant’s reputation is the basis of their business and a large part of how they gain new clients and retain existing ones. However, even a sterling reputation is sometimes not enough to combat unhappy clients, whether or not they did anything wrong.
A typical assignment for a business consultant might involve analyzing a company’s processes and providing advice on how to improve their bottom line. But what if the consultant helps implement a series of process improvements and then the client’s profits suddenly take a turn for the worse. It’s possible a client could allege the consultant’s advice on the process improvement was not effective because the new way did not take into consideration all the available new technologies costing the company more than necessary in new equipment purchases. The unsatisfied client could even threaten a lawsuit.
This is where Professional Liability insurance can help. Even if the financial loss wasn’t actually due to the consultant’s advice, a professional liability policy could provide expert legal staff to support the consultants, cover your legal fees, and compensate for time away from work due to the lawsuit. In the event damages are awarded to the client, your Professional Liability policy would cover the costs of the settlement.
An insurance professional can help you customize a professional liability policy that’s right for your business. Lawsuits are a common occurrence in today’s society, and the right policy can help ensure that business consultants are properly protected.