As a professional with extensive knowledge in your area of expertise, you always try to dot all the Is and cross all the Ts in the services you provide to your clients. But no one is perfect. If a disgruntled client believes your errors have cost them money (even if it’s not true), you might be sued, and the cost to defend yourself could be disturbingly high.
To protect yourself, consider buying professional liability insurance (usually called Errors and Omissions, or E&O insurance
). E&O insurance coverage is specific to your profession and industry, so work with an insurance professional who understands the unique professional liability risks you face as a consultant. You may have to produce a lot of documentation, which can lengthen the application process.