Any professional who offers "consulting services", regardless of the service they perform, can never fully escape the possibility that their work may fail to meet their clients' expectations and in today's litigious environment, all it takes is one dissatisfied client to place a professional's career and personal assets at risk.
This coverage is good for various consultants including management, environmental, healthcare, public relations, computer, engineers, architects, recruiters, telecommunications, etc.
Professional Liability (frequently called Errors or Omissions, and E&O) - protects your consulting business from claims of financial loss resulting from errors, the failure of your work, schedule, etc. to perform as was initially agreed upon in your agreement with your client.
Premiums are based on type of work undertaken, loss history (if any), experience and total sales in the specific business/niche areas where you do consulting and work.
Professional Liability is Required - If a client sues your company due to a dispute over work performance or a contract, your E&O liability coverage provides protection for you, your independent subcontractors working for you and your company.
Having professional liability shows the client that you have the business experience and professionalism needed to secure coverage.
Why not just General Liability? - General Liability coverage protects your business against claims of bodily injury or property damage to others (your client, for example). Commercial General Liability DOES NOT provide coverage for programming errors, contract performance disputes or any other Professional Liability issues. Consultants and firms who have General Liability without Professional Liability (Errors or Omissions) coverage are taking a serious risk.