Which type of insurance coverage is important for consultants to have for protection against errors made during inspection?

Consultants, especially those involved in inspections such as mold assessments, face the risk of liability for mistakes made during their professional services. Errors and omissions insurance, also known as professional liability insurance, specifically provides coverage for claims made against a consultant for alleged negligence, errors, or omissions that may arise in the course of their work.

This type of insurance is crucial because it helps protect consultants from financial loss due to lawsuits stemming from their advice or the services they provided. For example, if a consultant fails to identify a mold issue during an inspection and their client suffers damages as a result, this insurance would cover legal fees and any resulting settlements.

While general liability insurance covers bodily injury and property damage claims, it does not extend to professional mistakes or omissions. Workers' compensation insurance is designed for employee injuries and does not pertain to errors in professional services, and property insurance protects owned or leased equipment and premises but does not cover liability issues related to professional practice. Hence, the designation of errors and omissions insurance is vital for consultants who want to safeguard themselves against potential legal disputes arising from their professional assessments and recommendations.