Insurance

dougpearson6553 · 2013-12-02T18:07:35.000Z

Just curious what you carry for insurance. Just liability (I have seen General, Professional, and other types)? I have answered a few RFQs and they require a minimum $1M liability. I am meeting with an accountant next week, but want to make sure I have a general idea of what I need and how much.

I am not talking health insurance, just what you carry to “protect you”.

doctor-who · 2013-12-02T18:10:59.000Z

This has always been my fear when I say yes to doing side work for someone, clean up their PC, get them a new HDD, or whatever it may be. I have faith in my skills that I’m not going to indulge myself into a huge set up for another company (yeah pretty sure I could lose my job doing that), but fixing someones stuff can always invoke fear. If I were to one day start a full time consultation business I’m curious what everyone else does.

kurtm · 2013-12-02T18:34:52.000Z

I carried an umbrella insurance policy when I had my business. It was pretty cheap. I believe I got it from Geico and $1M coverage was 99 dollars a year.

neighborhoodit · 2013-12-02T18:48:54.000Z

I carry a $1M umbrella policy as well, something like $300/year. I do not carry Professional Liability (like errors & omissions) but instead limit liability through my client contracts to the total amount of the contract (they’re entitled to a full refund, but nothing more). Obviously something like gross negligence would still get me sued, but that’s what the umbrella policy is there for.

scottalanmiller · 2013-12-02T18:55:12.000Z

The paradox of insurance is that the more you carry, the more a target you are for a lawsuit. And insurance never wants to pay, so just because you have insurance doesn’t mean that they will pay. Insurance rarely works as well as one would hope.

scottalanmiller · 2013-12-02T18:55:39.000Z

NeighborhoodIT:

Obviously something like gross negligence would still get me sued, but that’s what the umbrella policy is there for.

Would they pay out in that case?

scottalanmiller · 2013-12-02T18:56:08.000Z

Far more safety than an insurance policy is having a limited liability corporation relationship and good contracts.

neighborhoodit · 2013-12-02T19:06:40.000Z

Scott Alan Miller:

NeighborhoodIT:

Obviously something like gross negligence would still get me sued, but that’s what the umbrella policy is there for.

Would they pay out in that case?

Yes, it’s written in such a way that it covers me both in cases of property damage (light a fire, pour water on a server) or the result of any lawsuit, regardless of the reason. I had my lawyer look over it very carefully.

dougpearson6553 · 2013-12-03T12:12:31.000Z

Scott Alan Miller:

Far more safety than an insurance policy is having a limited liability corporation relationship and good contracts.

I know an LLC can provide some excellent coverage. So maybe an LLC and a small liability policy? Surely you don’t forego insurance altogether, do you?