Am I liable if I make a recommendation that doesn't work out for my clients?
Yes and no. You are always going to be held "professionally" accountable (or measured) by your client based on your performance. Whether there is a presumption of legal liability depends on the kind of consulting work you do and how you position it with assumptions, disclaimers, etc. This is both a business and legal question. For the legal portion consult your attorney and check out The Consultant's Legal Guide published by Jossey Bass/Pfeiffer.Tip:
As a matter of good business, make sure you have both boilerplate disclaimers and qualified recommendations. Larger consulting firms have more to lose than independents simply as a matter of financial resources/exposure. Errors and Omissions insurance can be a useful risk mitigation strategy, at least to moderate the downside financial exposure incurred with a litigious client.© 2011 Institute of Management Consultants USA