Insurance consultants are hired to relay their expertise and skills and help guide clients to success. They also face a variety of risks purely because of the wide variety of services they tend to offer. Professional liability for insurance consultants serves as a way of reducing those risks.
Purchasing and maintaining E&O coverage tells your clients that you’re dedicated to rectifying mistakes, that you are a responsible individual, and it also assures them they’re financially protected if your business decisions result in their suffering some type of loss. The companies you’re working with most likely have protection, and they often assume responsible businesses like yours do so as well.
Many insurance consulting experts work with leading insurance companies, including property and casualty insurers, life insurers, health insurers and reinsurers to help them to develop practical solutions to the challenges they face in their chosen line of work. These consultants can generally offer a wide range of solutions and have the expertise to help their clients adapt to an ever-changing insurance market as well as boost their businesses in the short-term while positioning themselves for long-term success.
But no matter how well a person is at their job, or what their track record might be, they can make mistakes that could prove to be quite costly. For example, a client may decide that they were told to buy the wrong policy, or that the coverage that it was suggested that they purchase was not sufficient for the exposures that exist. This could certainly be considered grounds for a lawsuit. The intention was not to mislead the customer, but if the results lead directly to a serious loss for their business, or perhaps their personal assets are exposed to risk, the situation is likely to become litigious.
An individual can assess his or her risk by looking at the type of work they do and the financial stake their clients have in it. Every business has its share of concerns when it comes to customer dissatisfaction and how to deal with these issues. Coming to a solution that satisfies all parties is the best-case scenario, but when a solution isn’t forthcoming professional liability for insurance consultants is the best means of protection.