STHEtandard.pdfVIP

tandardNEW ENGLAND’S INSURANCE WEEKLY STHE Published Since 1865 Boston, Mass. August 22, 2014 Vol. 275 No. 4 SPOTLIGHT ON PROFESSIONAL LIABILITY / DO Growing Consulting Market = Strong Growth Opportunity for Independent Agents By Gregory Leffard The significant growth in the num- al workforce and offer their expertise The expense of defending against a ber of professional consultants across as professional consultants. professional liability claim can drain the country represents a tremendous financial resources and tarnish a con- opportunity for independent agents Establishing a successful consultancy sultant’s reputation. Legal judgments who are willing to specialize in this begins with industry-specific expe- and defense costs have doomed many market segment and who are able to rience and expertise. Consultants consultancies. provide valued counsel and custom- with the highest level of their specific ized coverage. industry expertise may not fully un- This growing opportunity is being derstand the risks and exposures of embraced by agents who have taken As the economy has continued to operating an independent consulting the time to become informed about make its way back from the Great Re- business, and also often don’t think this exposure and coverage solutions cession, more and more individuals that claims would happen to them. and who then actively discuss pro- are “hanging out shingles” as profes- fessional liability risks and exposures sional consultants. In 2009, at the That’s why many new consultants with their customers and prospects. height of the recession, the consult- purchase only the obligatory business Guiding their consultant-custom- ing industry shrank by more than owners policy (BOP) or general lia- ers to choose the best coverages to 9%