Errors & omission Insurance for management consultants is important regardless of the type of manager you may be. Liability can accrue for managers in all types of disciplines. Choosing the right E&O insurance can save money for a consultant as well as allow him to perform his duties with confidence.
One of the newest types of consultants is the so-called Sarbanes-Oxley consultants. This is a new type of specialist that has sprung up in the wake of the new Sarbanes -Oxley (SOX) legislation concerning the new standards for 401(k) investment plans. As a new legislation, mistakes can be a little higher than usual. With an employee’s investment plans on the line, the consequences of common clerical mistakes can be huge. Laymen expect financial people to cross all of their tees and dot all of their eyes. They have an expectation that those who handle their retirement plans are somehow beyond human, and don’t occasionally make mistakes. This sets the scenario for an occasional lawsuit.
IT consultants have begun to seek E&O insurance. Until recent years, computer professionals have not suffered from E&O liabilities, as it is difficult for people outside the industry to ascertain whether a clerical error has been made on the computer or not. Systems simply worked or didn’t. Nowadays, IT consultants can be liable for even the misspellings on a company website.
It is important for all professionals to carefully evaluate whether they have adequate errors & omission insurance for management consultants.