What Is Professional Liability Insurance for Consultants?

What is Professional Liability Insurance?

Many entrepreneurs know about traditional general liability insurance, but don’t know about professional liability insurance, even though it has a large overlap with the types of policies most entrepreneurs are familiar with.

Professional liability insurance is primarily designed for risk management. Many lawyers work as independent contractors and are often responsible for many types of insurance claims. For example, if you own a printing business, you could be liable if a book you printed is misprinted. You can buy professional liability insurance to protect you from such liability.

Why Do Consultants Need Professional Liability Insurance?

When doing business with a new client, you need to be honest with them about the work you will do. However, clients often don’t understand the implications of what they are agreeing to. You’re expected to give your best professional advice, but you’re not protected if you lie or say the wrong thing. This is especially important when discussing price, which is often negotiable. If you lie about the cost of the project, or misrepresent the services, then they are at risk of being sued. This is why you need professional liability insurance. It will protect you when you accidentally make a mistake and you face damages or personal injury. It also protects you from claims that are not from your clients, but from a third party.

How To Purchase Professional Liability Insurance

When you think of insurance, do you consider your home or auto? Chances are you probably don’t think of your livelihood or work as an insurance necessity. However, you need to know what professional liability insurance is and what it is important to do.

Professional Liability Insurance

When you’re a professional, you’re in a vulnerable position. Whether you’re writing a report or selling a product, if something goes wrong, it could be damaging to you. To avoid liability, you need professional liability insurance.

But what is professional liability insurance?

Professional liability insurance is insurance that protects you from the consequences of your work. It does this by making sure that clients and customers aren’t liable if you’re incompetent or unprofessional.


A friend of mine has a resume that has never let her down yet, in spite of an arduous search and many interviews. To my knowledge, she’s had two offers that she turned down. The problem is, she now believes it’s because her resume isn’t perfect.

“My resume is full of errors,” she said. “If I were to make the same mistakes again, I would certainly get a more serious look from employers.”

My friend is right. Her resume isn’t perfect. But the fact that it’s perfect for her is the reason that she’s still looking. She doesn’t know how to make it better.

So I asked her, what errors did she make?

“There are two,” she replied. “The first is that I listed too many volunteer positions. I was adamant that I was too busy for those.

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