Why Do Consultants Need Insurance?

[efagent]

I have a client that hires many consultants of various types. They seem to only find/hire consultants that do not carry Professional liability and when I advise them that they need to obtain evidence of insurance for the consultants I become the 'bad guy'.... Does anyone out there have a simple but comprehensive article/paper, etc. that explains to a client why the consultants that they hire need to maintain insurance? I have one client in particular but this comes up on a regular basis.
THANKS.

 

[xrac]

I think it is more important for the consultant that he have insurance than it is to the people who hire him.

 

[NCAgent]

I concur with XRAC. Perhaps it isn't the *lack* of E&O that they care about, its the fact that many of these people probably work for cheap. Like having a maid from the street vs having an insured cleaning service.

But yeah, consultants need it because they are consulting and telling people how to change things. If they mess stuff up, the consultant could cost a LOT of money to companies/businesses.

 

[The Rabbi]

You're beating your head against a brick wall with this client. Work with clients who have common sense.

 

[BTFuzz]

You're beating your head against a brick wall with this client. Work with clients who have common sense.

Amen to that! Sometimes it is tough to fire clients but the older you become the less you'll want to cater to jerkoffs like that.

 

[Bertolinoins]

What does your client do exactly?

 

[efagent]

The client is a non profit that helps restore and maintain parks. Can't really "fire" them as a client as several of the board members are good clients that have other business with us. It's the employees that do the day to day operations that complain that we make it hard to get things done within budget by insisting that they hire consultants that are properly insured!! I would like to find an article or paper on the subject that I could send to each board member so that I can quit having to have the conversation with multiple board members / employees every single time they want to hire a consultant. They hire 3 or 4 consultants a year for thing ranging from marketing/fund raising to engineers!!
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I think it is more important for the consultant that he have insurance than it is to the people who hire him.

My concern is not the consultants, they are not my clients....

 

[Bertolinoins]

The client is a non profit that helps restore and maintain parks. Can't really "fire" them as a client as several of the board members are good clients that have other business with us. It's the employees that do the day to day operations that complain that we make it hard to get things done within budget by insisting that they hire consultants that are properly insured!! I would like to find an article or paper on the subject that I could send to each board member so that I can quit having to have the conversation with multiple board members / employees every single time they want to hire a consultant. They hire 3 or 4 consultants a year for thing ranging from marketing/fund raising to engineers!!
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My concern is not the consultants, they are not my clients....

It sounds like they are comfortable self insuring for those exposures... let them but put your concerns in writing.

 

[jtm1240]

The client is a non profit that helps restore and maintain parks. Can't really "fire" them as a client as several of the board members are good clients that have other business with us. It's the employees that do the day to day operations that complain that we make it hard to get things done within budget by insisting that they hire consultants that are properly insured!! I would like to find an article or paper on the subject that I could send to each board member so that I can quit having to have the conversation with multiple board members / employees every single time they want to hire a consultant. They hire 3 or 4 consultants a year for thing ranging from marketing/fund raising to engineers!!
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My concern is not the consultants, they are not my clients....

Check Professional Liablity Insures web sites for F & Q's and examples. Also, Wiki has some pretty good info on Professional Laib / E & O.