I'm launching a small consulting business from home and wondering if I really need to invest in liability insurance right now. Most of my clients are local and I'm just getting started, so I'm trying to keep costs down. What are the actual risks if something goes wrong?
What happens if a client claims your advice caused them financial loss or damaged their business? Even a small consulting operation can face lawsuits that cost tens of thousands to defend, and without liability insurance you're personally on the hook for damages, legal fees, and potential collection actions - most policies are pretty affordable for startups and often a requirement anyway if you ever want to scale up or work with bigger clients.
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