Errors and Omissions Insurance for Consultants

We provide errors and omissions (E&O) insurance, also called professional liability insurance, to consultants and consulting firms in all fields. We work with multiple highly rated insurance companies and can find insurance solutions for all types of consultants. Please click here to review the full list of consultants we can provide E&O insurance to.

Why do consultants need errors and omissions insurance?

Consultants perform work and provide advice to their clients. Consultants can be the subject of a demand for compensation or lawsuit to the extent that a client or third party who relied on the consultant's work product or advice suffers a loss. The claim will usually be based on an actual or alleged error or omission made by the consultant. Whether the claim is justified or not, consultants will need to incur time and money defending themselves and may liable for damages if found responsible for the loss.

It is therefore vital for consultants and consulting firms to have the appropriate errors and omissions insurance coverage.

What coverage does an errors and omissions insurance policy provide consultants?

Errors and omissions insurance policies provide defense and indemnity coverage for claims made against consultants by reason of an error or omission in the performance of professional services.

Errors and omissions insurance policies for consultants are usually issued on a claims made form. Claims made policies provide coverage for claims reported during the policy period resulting from an act, error or omission which took place on or after the retroactive date. The retroactive date is stated on each policy and is usually the inception date of the first E&O policy and should not be changed at each policy renewal. However, a gap in coverage usually results in the loss of the retroactive date, and hence in the loss of coverage for prior acts. Therefore, in order to be covered, a consultant must generally have continuous E&O coverage from the date the act, error or omission took place until the date the claim is reported.

What policy limits and deductibles are available to consultants?

The most common errors and omissions insurance policy limit that consultants purchase is $1 million/$1 million (limit per claim/annual aggregate limit). However, typical policy limits range from as little as $100,000 up to $5 million. Higher policy limits are available for consulting firms with high revenue.

The most common errors and omissions deductible for consultants is $2,500 per claim. However, deductibles range more commonly from $1,000 to $10,000 per claim. Large consulting firms can select higher deductibles, such as $50,000 to $100,000, in order to lower their E&O insurance premiums.