Identifying & Preventing Consultant Lawsuits

A consultant provides invaluable services to businesses that are looking to stimulate organizational development, improve productivity, increase profits, or boost company morale. Professional consultants provide comprehensive advice and targeted training designed to meet the contractual agreements between them and companies in need. But what happens when things don’t go as planned? Consultants could face lawsuits for negligence or contractual breaches, so they need to be proactive to make sure they protect themselves and their reputation with professional liability insurance.

Legal Risks for Consultants

Contractual breaches can include breaking confidentiality agreements, not producing agreed-upon deliverables, and not meeting timelines or copyright infringement, to name a few. Negligence claims can also be the result of business losses due to your client’s advice, non-compliance with professional standards, or even personal injury during consultant training. While these risks are severe, many can be avoided with proper planning, realistic expectations, and constant communication.

Abdicating Risk

Be sure to provide feasible goals and deadlines that take possible contingencies into account. For example, don’t overpromise and underdeliver as customers will be unhappy and your clients could be subjected to legal action. Exaggerating qualifications or misrepresenting their level of experience may result in a potential legal battle.

Communication is vital when working as a consultant. From start to finish, your clients need to keep their customers informed about project progress and any potential issues that may affect performance. Consultants should address concerns and goals with the client early in the process and make sure they get all contractual agreements in writing. If problems do arise, consultants need to avoid procrastinating on notifying the client. Instead, they should be direct and honest to avoid any misunderstandings.

Don’t forget to enforce contracts as well. Consultants have rights, too, and should be able to collect negotiated fees promptly. If not, consultants have the right to pursue their clients legally. In the end, it pays to do their due diligence and ensure they have insurance coverage that is there to protect themselves and their hard work adequately. Professional liability insurance is designed for this purpose, and the skilled team at AmSuisse is here to help.

About AmSuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, reliable customer service, and strong relationships with our carrier partners have all helped us provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.