I have run into this before with public companies. I'd try pushing back
just to see if the insurance requirement is firm. A lot of times the client
doesn't care especially if your project duration is short, you are offsite,
etc. I've had the insurance amount reduced or removed all together.

If I recall correctly General/Umbrella insurance is fairly cheap, about
$1000 a year for $1m in coverage… E&O can be pricey!

Ryan

On Wed, Jul 18, 2012 at 12:08 PM, Jan Triplett <[email protected]> wrote:

> Pretty standard with government stuff.
>
> Earlier suggestion to see if this is just a "boilerplate" issue is a good
> one. I have seen clients back off from this. It's not so strange when you
> consider the potential risk if they are not the end user. No one wants to
> see their name in print with no recourse if things go south.
>
> I also agree, talk to a lawyer. You should have one review the contract
> anyway. My go to contracts person is attorney Jeanine Lehman. Jeanine
> Lehman <[email protected]> She certainly does a great "translation" job
> as well as a great job looking after the interests of her clients.
>
>
> Here's to your success!
>
> Jan F. Triplett, PhD., CEO
> Business Success Center
> Sales & Financial Business Management Advisors & Strategists
> Twitter <http://twitter.com/jantriplett>
> Linkedin<http://www.linkedin.com/profile?viewProfile=&key=27232&locale=en_US&trk=tab_pro>
> http://ownersview.com
> 512.933.1983
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> On Jul 18, 2012, at 9:24 AM, Chadwick Wood wrote:
>
> Thanks Paul,
>
> I'm actually working directly with the client, not with a firm.  It's my
> assumption that the client requires the insurance so that, in case I really
> messing something up, there's some money potential in a lawsuit beyond my
> company assets (which feels like a weird foot to get off on with a new
> client, but I guess that's how the big guns do it?).
>
> Thanks,
> Chadwick
>
>
> On Jul 18, 2012, at 9:18 AM, Paul Menard wrote:
>
> Chadwick,
>
>
> Disclaimer: you should probably consult an attorney or someone familiar
> with contracts.
>
>
> I've been a self-employeed developer for hire since 2006 and just was
> looking into liability insurance this Spring. Mainly because I was getting
> into larger and larger projects. And those clients are very strict on
> timelines and budget. You can just do a google search for 'Professional
> Liability Insurance' and find all sorts of underwriters. The purpose of you
> having insurance is to limit your liability should you be sued.
>
>
> I think it is strange that your client as telling you that you have to
> have liability insurance in order to be a contractor for them. If this is
> an agency who works with their own clients then they might have something
> else in the contract to the effect that they are not responsible for your
> actions regarding their client. Sort of a way to pre-exclude themselves
> from damages should their client sue them. So they are basically saying you
> will take the heat if something goes wrong.
>
>
> Again, I would seek out someone to review the full contract like an
> attorney. And or just pass on the client unless they are really lucrative.
>
>
> P-
>
>
>
>
>
>
> On Jul 18, 2012, at 9:48 AM, Chadwick Wood wrote:
>
>
> Hi all,
>
>
> I'm a web developer, and a prospective client (large organization) has
> sent me their standard contract, and in it they require contractors they
> work with to carry Commercial General Liability Insurance as well as Errors
> & Omission insurance.  Have any of you run into this before?  This is my
> first time in 5+ years of doing this work.  Does anyone have any info about
> it?  I'm not sure whether to push back on having that requirement dismissed
> (not likely), or if I do buy it, how to go about shopping for it.
>
>
> Thanks!
>
> Chadwick Wood
>
> http://coffeeshopped.com/
>
>
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