How AI Advisory Is Reshaping E&O Insurance for Consultants

Posted on: July 22, 2025 by Huntersure

From predictive modeling to automated reporting, consulting and advisory professionals are increasingly weaving artificial intelligence into how they analyze data, forecast trends, and deliver services. As AI becomes embedded in these workflows, it’s also reshaping the risk landscape, raising new questions about accountability, decision-making, and coverage. For insurance agents, this evolution underscores the importance of offering errors and omissions insurance for consulting and advisory professionals that reflects the way modern firms operate.

AI Tools Bring New Liability Risks

AI is transforming decision-making, but it’s not immune to error. The margin for error can grow when consultants rely on machine-driven insights. Faulty algorithms, biased training data, or misread outputs can result in poor recommendations and client losses.

If a client suffers financially due to AI-informed advice, they may pursue legal action against the consultant. Even if the root cause lies with the technology, courts may still hold the consultant responsible for failing to exercise reasonable care in vetting, monitoring, or interpreting the AI tool. These cases are increasingly driving professional liability claims, particularly in high-stakes areas like mergers and acquisitions, strategy, and business restructuring.

Coverage Gaps Are Emerging Quickly

Traditional errors and omissions (E&O) policies focus on human judgment, such as missed details, flawed analysis, or misjudgments. While many remain technology-neutral, they often lack clarity around claims where machine outputs influence decisions.

As AI becomes integral to consulting workflows, the line between human and machine input blurs. In some cases, especially where proprietary tools are sold as part of the advisory service, questions may arise around whether an E&O policy extends to software-driven errors. That’s why it’s important to revisit E&O policies to ensure that consulting and advisory professionals are covered for the way they currently operate.

Tailoring E&O to Modern Consultants

Consulting services vary widely, and so should their insurance coverage. Strategic advisors, tax consultants, and turnaround managers all face different risks, especially those using AI in their processes.

Huntersure’s errors and omissions insurance for consulting and advisory professionals is built for these diverse realities. Coverage can address breach of contract, negligent advice, missed deliverables, and even AI-assisted errors. Here are some additional program features:

  • Coverage for independent contractors
  • Personal injury protection
  • Early claim resolution incentives
  • Defense for certain fraud or discrimination allegations (subject to innocent insured provisions)

Huntersure also offers primary and excess limits up to $5 million, with responsive quoting and underwriters who speak the language of today’s consultants.

Stay Ahead of AI Liability Trends

AI-driven consulting is here to stay. With 86% of consulting buyers actively seeking firms that incorporate AI, expectations are changing fast. Insurance agents who stay ahead of these trends can help clients close coverage gaps before they become claims.

With Huntersure’s flexible underwriting approach and deep expertise in professional liability, agents can offer meaningful guidance that protects both established firms and emerging practices experimenting with technology-driven models.

Contact us today to learn how Huntersure’s customized errors and omissions insurance for consulting and advisory professionals can help you support your clients in an increasingly AI-integrated world.

ABOUT HUNTERSURE

Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.

Posted in: E & O E & O Insurance Errors & Omissions Errors & Omissions Insurance