Consultants and the Need for NY Errors Omissions Insurance
Businesses of every type and size require insurance to protect assets and help pay for any damages incurred during their operations. For example, if you’re in the consulting sector, or are a provider of expert advice, you likely are going to need to purchase NY errors omissions insurance (E&O) in the event you are sued for a negligent act.
This is professional liability insurance that covers anyone who considers themselves an expert in any of several fields, and as an expert provides advice or consulting services. If a client sues for financial damages due to having their project fall far below expectations, based on advice or recommendations they received, your E&O policy covers you for any legal fees and defense costs incurred. For a reasonable price (around $1,200.00 per year), depending on your profession and the scope of the plan, you could have up to $1,000,000 worth of professional liability coverage or more.
The challenge when working as a consultant is that your client may seem perfectly happy with the work you submit, but six months later, that same customer may not be happy with the performance of a service, program or project you provided or implemented. He or she may even specifically allege a functionality failure that has caused financial damage or loss of income. If you can’t come to some sort of an agreement with a satisfactory resolution, the customer may not only terminate the contract due to negligence, but sue for damages as well.
Look, mistakes happen, and unfortunately we live in a highly litigious environment. As it happens, sometimes things slip through the cracks and you can’t personally attend to every single detail of every job. You don’t want your business to suffer simply because of an erroneous assumption that was made.
Dealing with the stress of litigation can be mentally exhausting and financially damaging as well. These are the types of situations that can distract you from doing your best work. With NY errors omissions insurance you can actually relax, knowing full well that any potential liabilities will be covered in the event of a claim.