As corporate operations and technology converge, today’s management consultants often find themselves advising clients about technology purchases or employing new technologies to help their clients attain higher levels of performance and efficiency. Unfortunately, the industry-standard professional liability insurance policies these consultants often carry don’t typically cover IT-related claims. That’s why Business Insurance Now has raised the bar for management consulting errors and omissions (E&O) insurance by adding technology-specific endorsements to management consultant professional liability policies.
“What we’re seeing is that management consultants are providing a mix of services that increasingly include giving advice about the selection of software and technology platforms,” says Jim Cochran of Business Insurance Now. “Management consultants are also using software to provide analytics that allow the corporate client to monitor the business’ performance to make more effective decisions. This exposes management consultants to the same sorts of liability risks that were previously limited to information technology consultants.”
If a management consultant were sued by a client over an allegation related to a technology recommendation, a standard management consulting professional liability policy may not provide coverage. For example, such policies typically provide coverage for allegations related to advice given regarding a company’s human resources operations. However, if the consultant’s advice involves recommendations for payroll software, but that software doesn’t perform as expected and the policy doesn’t specifically include coverage for technology recommendations, the policy may not respond to that claim.
“A classic management consultant E&O policy may not cover a management consultant acting as a computer consultant,” Cochran says. “More and more of Business Insurance Now’s management consultant clients began to realize they didn’t have the comprehensive coverage they really needed, and they came to us for help. So, we’ve worked with some of our carrier partners to make sure that when a management consultant is involved in IT recommendations, their management consulting E&O policy includes specific endorsements that broaden coverage to include IT consulting services.”
Business Insurance Now’s sister company, TechInsurance, specializes in insurance for computer consultants, so the company has in-depth knowledge of the risks related to giving advice about IT solutions and the gaps that exist in many standard management consulting errors and omissions insurance policies. For management consultants who are unsure whether they have appropriate E&O coverage, Business Insurance Now offers free consultation and no-obligation quotes.
About Business Insurance Now
Business Insurance Now is a web-based e-agent that offers office and professional groups fast, easy, one-stop shopping for all their property and liability insurance needs. Business Insurance Now offers free, no-obligation quotes and the option to implement coverage immediately. For more information, please visit www.BusinessInsuranceNow.com.
About TechInsurance
TechInsurance, the sister company of Business Insurance Now, is a web-based e-agent that offers IT businesses and professionals fast, easy, one-stop shopping for all their business property insurance and liability needs. TechInsurance was founded in 1997 in response to the difficulty IT services firms had finding high-quality, affordable business insurance. With more than 13,000 businesses insured, the company has grown to become America's leading online provider of business and professional insurance for computer consulting, web services companies and other IT service businesses. For information, visit www.TechInsurance.com.
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