Business insurance is always important to have, regardless of the industry your company operates in. As a consultant, it may even be a requirement that you have a professional liability insurance (sometimes called a professional indemnity insurance) in order to enter into contracts with other companies.
As a consultant, you often act as an advisor on behalf of the customer. If at any time you accidentally give erroneous advice or perform a task that in any way causes a cost to the client, they have the right to make a claim for damages against you as a consultant.
Therefore, it is important that you have liability insurance with professional liability coverage. In this way, you protect your consulting business from the financial consequences that come with a compensation claim.