Dear Anonymous, there are a number of providers of Errors and Omissions (E&O) and Professional Liability Insurance for both businesses and individuals (though many providers will only ensure businesses with over $1m in revenue).
Regarding, is it neccessary..? Maybe. Is your client the end customer or is your client a contractor for which you are a 1099 subcontractor..? Errors and omissions insurance protects technology businesses against litigation involving professional negligence or charges of failing to perform professional duties. Consulting companies often require their subcontractors to carry Errors and Omissions Insurance. If a client company experiences what it perceives to be an actionable error or omission, even if the problem occurs months after the initial consulting activities, both the consulting firm and subcontractors can be held liable. Errors and Omissions insurance protects both parties as they face the legal battles. Hence, if your customer is a contractor, you may be required to have coverage.
Regarding, is it expensive..? Rates vary based upon several factors, but generally speaking coverage is not expensive. Listed below are some sample quotes provided by Techinsurance, an internet-based insurance firm for IT businesses and professionals.
Regarding war stories to share.. I don't have any but I suspect that good folks at Techinsurance and all the other providers stand ready with a tantalizing reportiore. Good post..! I look forward to hearing and learning from others. Cheers..!
Mark Perry
VP of Customer Care
BOT International
