Understanding the Basics of Consultant Insurance

Understanding the Basics of Consultant Insurance

No matter what you choose to do for a profession, you will always face the risk of a lawsuit during the course of your career. In some cases, you may be guilty of a negligent act or omission that results in a negligence lawsuit against you. Even if you are innocent of the act for which you are accused, you will still be responsible to pay legal costs to defend yourself.

To give yourself adequate financial protection against possible future lawsuits, it is important to talk to your insurance agent about consultant insurance. Here are some basic details that you should know about this type of insurance before you buy:

What Consultant Insurance Covers

Consultant insurance (also commonly referred to as professional liability insurance), typically covers acts of negligence or omission, which can vary in scope and type depending on your profession. For example, a doctor may be accused of committing very different acts of omissions or errors than a contractor. Talk to your insurance agency to find out which acts of negligence are covered by your policy.

It is important to understand that professional liability insurance does not typically cover all legal liability costs or criminal prosecution. It also does not generally cover any harm or injury to another individual’s person or property. That is why it is important to make sure you have general liability coverage as well for the protection of your business.

 

photo credit: Publicis MARC Group cc

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