A wholesale insurance broker is a licensed broker providing specialized insurance products to retail insurance agents and brokers, often referred to as retail agents, and supporting those products with specialized expertise. Retail agents representing consultants require a consultants professional liability insurance wholesaler to provide policies for this important sector of the business world.


The job of a professional consultant is to give expert advice to businesses and organizations they are hired to provide services to. Consultants often work with all types of organizations and industry sectors, including technology, marketing and non-profit companies. Consultants may also work as independent contractors and often work for several different clients.


Consultants are faced with many risks and exposures


A professional consultant is never immune to the possibility of a lawsuit claiming damage or harm because of a negligent act, error, or omission arising from the performance of an individual or firm’s professional work. This is due to the fact that the company is making decisions based upon their professional consultation, which is why they purchase protection, in the form of insurance, from an agent in case they come under fire for any advice they dispense.


When something goes wrong, errors & omissions (E&O) claims are what comprise most of the suits brought against a consultant or consultancy firm, and the main reason why coverage is so crucial. It is the responsibility of the agent to provide coverage options, which are sought from the insurance wholesaler, who utilizes specialty insurers (also called “markets”) who can consider accounts that the retail agent cannot place competitively with their standard markets.


A retail agent expects the wholesale broker to provide proposals for insurance and expertise for these specialized accounts because of their access to a wide range of specialty markets for professional liability placements. A viable wholesale agent can offer broad coverage for consultants that provide protection against claims alleging:


  • Improper documentation


  • Improper fact verification


  • Missed deadlines


  • Misrepresentation of facts


  • Breach of nondisclosure


  • Loss of data, improper procedures or negligent handling of data


  • Failure to prevent electronic theft of records and confidential information


  • Employee theft and sale of client’s trade secrets


  • Deliberate dissemination of false information


  • Violations of state and federal law, such as violation of right to privacy


Agents representing consultancy firms should take full advantage of the services of a consultants professional liability insurance wholesaler for many of their clients needs.