Business Liability Insurance for consulting

Guest

Aside from our main business one of our employee is working as a
Subcontractor with a tech company. He will be doing Computer
programming (software developer) work for this tech company through a
middle contracting company in Missouri. The work involved is done under
the supervision of client. The contract between us and the middle
company requires us to have Liability Insurance for our employee who is
working on the project at client site.

Required Insurances:-
1) General Liability ($1 mil)
2) Auto Liability ($300,000)
3) Workers compensation ($1 mil)
4) Errors and Omissions ($3 mil).

We are interested in buying Liability Insurance but for this one
particular employee only who is working on this particular project and
not for our whole company.

- Approximately what yearly insurance premium we will have to pay?
- List of insurance companies that can provide this kind of insurance
package?.

thanks

John A. Weeks III · Guest

In article <119q8schi98vfee@news.supernews.com>,
selectandapply@yahoo.com wrote:

Quote: Required Insurances:-
1) General Liability ($1 mil)
2) Auto Liability ($300,000)
3) Workers compensation ($1 mil)
4) Errors and Omissions ($3 mil).

We are interested in buying Liability Insurance but for this one
particular employee only who is working on this particular project and
not for our whole company.

- Approximately what yearly insurance premium we will have to pay?
- List of insurance companies that can provide this kind of insurance
package?.

My general liability for $1-mil costs about $125 a year
as an umbrella policy from State Farm. The number for
auto is pretty standard. I pay about $50 per 6 months
extra for a business rating on my vehicle. The workers
comp is also pretty standard. In MN, it is available
through the state.

E&O is the biggie. It is very, very hard to get, and
for computer consulting, it is extremely expensive. The
best thing to do is try to negotiate out of it. The 2nd
best thing is to ask the person asking for it where it
can be found since it is pretty rare. Beyond that, you
have to go to a business insurance broker and have them
do a search.

When I run into this, I show the client two different
rates, one with E&O, and one without. Since the rate
without is about 50% less, the client normally wants
to go that way. I explain it that we are both taking
a risk. I am risking my reputation, they are risking
what they pay me. I am risking everything I have,
they are risking one contractor worth of money. And
even if I did screw up, they would probably have to
mount a pretty expensive legal effort to collect under
E&O anyway.

The best thing to do is avoid the whole thing.

-john-

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John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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fp · Guest

Try Tech Insurance, www.techinsurance.com. They can offer all of the
insurance that you are looking for. Expect workers comp to be 1% or so of
payroll and E/O to be $1000 per million.

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Fred Parker
Lynn Consulting Group, L.L.C.
http://www.lynnconsultinggroup.com
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Guest · Guest

After some negotiations I have got the Errors & Omissions requirement
lowered from $3mil to $1mil.

I'm trying to get quote from techinsurance.com, state farm and hartford
insurance. Which other insurance agencies I should look for.

The difficulty that I see is that so far the brokers that I have talked
to so far are not agreeing to get quotes for partial business ( for one
project contract work only as mentioned in original post ).

Thanks.

fp · Guest

What you can do is get the coverage for your entire business and cancel it
when you are done with the contract. You will get a refund for the unused
insurance.

--
******************************
Fred Parker
Lynn Consulting Group, L.L.C.
http://www.lynnconsultinggroup.com
******************************