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By way of background, 2014 marks my 21st year in an independent consulting practice doing
business as a sole proprietor.  Most of my practice has dealt with issues of environmental
compliance and remediation on behalf of major corporations in the chemical, steel and nuclear
industries. 

I do not carry professional liability insurance nor have I ever felt the need to do so.  Several of
the attorneys that I have had the privilege of working with have told me that professional liability
insurance was not necessary for what I do.  Further, the company that carries my business and
personal insurance does not write professional liability insurance for statisticians.

That being said, it has become difficult for me to work directly for companies as their purchasing
departments have become increasingly risk adverse over the past 21 years.  When the
professional liability insurance issue can not be resolved via agreement modification there is
usually a work around.  In my case, the company either directs their major environmental
services contractor to retain my services or I am retained by outside counsel.

An independent consultant-chemist colleague of mine has proposed that when all else fails,
invoice the client for the policy premium.  Make it the first line item on the first invoice and
make it clear that you won't start working on their problem until the invoice is paid and you have
the required professional liability insurance. 

For those uninitiated, professional liability insurance is not the same as business liability
insurance.  Business liability coverage is a part of a general business policy and covers bodily
injury, property damage and, personal and advertising injury.

By way of background, 2014 marks my 21st year in an independent consulting practice doing
business as a sole proprietor.  Most of my practice has dealt with issues of environmental
compliance and remediation on behalf of major corporations in the chemical, steel and nuclear
industries. 

I do not carry professional liability insurance nor have I ever felt the need to do so.  Several of
the attorneys that I have had the privilege of working with have told me that professional liability
insurance was not necessary for what I do.  Further, the company that carries my business and
personal insurance does not write professional liability insurance for statisticians.

That being said, it has become difficult for me to work directly for companies as their purchasing
departments have become increasingly risk adverse over the past 21 years.  When the
professional liability insurance issue can not be resolved via agreement modification there is
usually a work around.  In my case, the company either directs their major environmental
services contractor to retain my services or I am retained by outside counsel.

An independent consultant-chemist colleague of mine has proposed that when all else fails,
invoice the client for the policy premium.  Make it the first line item on the first invoice and
make it clear that you won't start working on their problem until the invoice is paid and you have
the required professional liability insurance. 

For those uninitiated, professional liability insurance is not the same as business liability
insurance.  Business liability coverage is a part of a general business policy and covers bodily
injury, property damage and, personal and advertising injury.