During the course of work in professional services, errors and mistakes can occur. Any company that provides services for a fee, oversees or hires subcontractors or has contractual service agreements that require confidentiality concerning another business’s proprietary information could lead to significant exposure in the area of professional liability. Advisory consultants take part in these activities, which makes them at risk for lawsuits.
Concerns With Errors and Omissions
The reality of errors and omissions is that every advisory company or consultant can make mistakes. Errors don’t have to be intentional; they could be overlooking a significant detail, being misunderstood by the client or potentially misstating key facts. If these occur, allegations could arise that lead to litigation. As a form of protection, MPL insurance for advisory consultants is highly recommended.
Benefits of MPL Insurance
With professional liability insurance, you are given financial security in the event you are taken to court under the following claims:
- Errors or omissions were made during the course of professional services
- Misrepresentation of the service being performed occurred
- The service was not performed in a timely manner
Liability coverage can address the costs of litigation, including awards or settlements that may be ordered by the court. Given the value of lost time, the distraction of legal cases and the expense of hiring a defense, no advisory consultant should ignore the need for MPL insurance.