Question 1

What is a common misconception about Professional Liability (E&O) for Management Consultants?

Accepted Answer

Consultants think 'they signed a contract — my advice is just my opinion.' Plaintiffs' lawyers argue that consultants hold themselves out as experts and the client relied on that expertise.

Question 2

What happens if management consultants don't have Professional Liability (E&O)?

Accepted Answer

You're hired to recommend a CRM for a 200-person sales org. The system you recommend turns out poorly suited; the client sues for failed implementation costs ($240K). E&O defends and pays.

Question 3

What is a common misconception about General Liability for Management Consultants?

Accepted Answer

Solo consultants working from home think they don't need GL. Almost every commercial client requires $1M+ as a contract condition.

Question 4

What happens if management consultants don't have General Liability?

Accepted Answer

Client trips on your laptop bag at their office — $9K medical. GL pays.

Question 5

What is a common misconception about Cyber Liability for Management Consultants?

Accepted Answer

Consultants holding client confidential data think their NDAs protect them. NDAs don't pay for breach response — cyber insurance does.

Question 6

What happens if management consultants don't have Cyber Liability?

Accepted Answer

A laptop with confidential strategy decks is stolen. Notification, forensics, and a single client's lawsuit for confidentiality breach total $145K. Cyber pays.

Question 7

What is a common misconception about Employment Practices Liability (EPLI) for Management Consultants?

Accepted Answer

Boutique consultancies think 'we're all on the same wavelength' — until a fired senior consultant claims discrimination.

Question 8

What happens if management consultants don't have Employment Practices Liability (EPLI)?

Accepted Answer

Terminated principal consultant alleges race discrimination. EEOC defense $58K, settlement $90K. EPLI pays.

Question 9

What is a common misconception about Directors & Officers (D&O) for Management Consultants?

Accepted Answer

Most boutique consultancies skip D&O. Only relevant if you have outside investors or a board with non-employee members.

Question 10

What happens if management consultants don't have Directors & Officers (D&O)?

Accepted Answer

An investor in your firm sues officers for misrepresenting projections. D&O defends and pays defense costs ($120K).

Management Consultants Insurance Coverage Guide | RISKX