As an independent contractor, you’ve probably had to set up your own insurance coverage, including health insurance and possibly other policies. Along with these, you must evaluate your need for professional liability insurance, which will protect you if a client files a suit regarding how you did or didn’t fulfill your professional obligations. This coverage, also called errors and omissions insurance, may be necessary, in addition to any general liability policy you may have, to protect you in the event that clients sue, claiming that you caused them financial loss or interruption of services.
It's important to assess your risk and consider coverage, because as an independent, you don’t have the financial resources of a big company to back you up in the event of a client lawsuit. Also, more companies have recently begun requiring independent contractors to carry liability insurance when working on a project for them. If you subcontract, you may find that many computer-consulting companies are requiring their 1099 workers to carry professional liability insurance coverage in an amount equal to their own. You can assess your risk based on the type of work you do, the clients you take, and how well your contracts shield you from this type of lawsuit.
The Titanium Risk Group Company Protection Insurance policy provides a comprehensive liability solution for privately held corporations. The Titanium Risk Group's program provides: Directors & Officers Liability, Employment Practices Liability and Fiduciary Liability. These coverage's can also be provided on a mono-line basis.
Professional liability insurance safeguards you against allegations of malpractice. While your employer may provide coverage for you, it may not be enough to cover you in all cases. Your employer's policy is designed to preserve the employer’s needs and interests first.
Your employer's policy probably only covers you while you are at work and is unlikely to safeguard you if you give advice to a friend or neighbor after hours, perform volunteer work, or moonlight outside of your full-time job. The professional liability policy offered through NSO is individual coverage that will offer insurance for these activities, as well as provides coverage over and above your employer's policy, even if you change jobs.
