Is errors and omissions (E&O) insurance necessary for independent computer consultants?
Yes, it is. I have been an independent computer consultant for a little more than seven years. I put off buying E&O insurance until about a year ago. Errors and omissions insurance is expensive, and I had been trying avoid that expense.
What I am finding is that more and more consulting firms and recruiting agencies are requiring their 1099 contractors to carry their own E&O insurance, in addition to general liability insurance. This wasn’t the case just a couple of years ago.
Anyone who has been a consultant for more than a week knows that when something goes wrong on a project, the consultants always get blamed, regardless of who really is at fault. I have never been sued and don’t know of any computer consultants who have been sued. But it is best to protect yourself because the worse case scenario could be financially devastating.
I bought my E&O and general liability insurance policies from The Hartford. You can contact Jenny Skalnig at 1-877-853-2582 x4417 jenny.skalnig@thehartford.com for more information.
Some consulting firms and agencies will cover you on their own policies if you are their W-2 employee, but you need to check with them first.
Here are a couple of other sources for E&O insurance:
www.wiredforgrowth.com
www.techinsurance.com
I look forward to reading your comments
Mitch Paioff, Author, Getting Started as an Independent Computer Consultant
Tags: computer consultant, consultant, Consulting, E&O insurance, errors and omissions, Independent Computer Consultants Prospered in 2008, independent consultant, independent software consultant, software consultant, start consulting business