freelancer business insurance?
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- waynebrady
I am doing a project that requires me to have General Liability Insurance as a contractor. Anyone gone through this process? How much does it cost per year?I've always though a simple EIN was enough to contract, but apparently not. Thoughts?
- PonyBoy0
why bother?... is the client worth the extra cash and hassle?
- waynebrady0
unfortunately, yes :(
- jamble0
You'd probably just be safest phoning a local insurance firm or perhaps speaking to a business advisor. Don't know if you have something like Business Link (http://www.businesslink.gov.uk... in wayneland but these would be where I'd start if you can find something similar.
- vaxorcist0
Photographers and filmmakers often have to do this.... especially if they rent out pricey gear or work on location.... Cost can be a few hundred a year to a thousand, depending on exact needs..... make sure your insurance agent is willing to fax over a proof of coverage form that names the insured as you and/or the client.....
NOTE: This may be a warning... are they asking you to indemnify them against something odd, like patent lawsuits? ... or is it more like a photo shoot where you might break something or injure somebody on location?
- waynebrady0
I'm actually a flash designer. I suppose they want to make sure my code won't cause trouble in the future?
- waynebrady0
I have a quote for $700/year. Is that too much?
- harlequino0
Actually wouldn't the insurance be so that if something bad happened to the deliverables (site breaks down, your hardrives blow up, you get eaten by ferrets) that falls on your shoulders, there is funds to back up a do-over. That's basically why post-production houses carry insurance i think. To cover the cost of deliverables.
- ETM0
I would find out WHY they want it if you are just doing Flash work. Is it specific to you/your project or is it just a blanket policy ?
- waynebrady0
It is a corporate hiring policy, apparently. Seems like a rare thing, though. I've been freelancing for a while and this is a first.
- Well if the gig pays for carrying an annual on liability, might as well get it.harlequino
- vaxorcist0
I'd ask them why they need this? Was there an event that caused this policy? Are there papers they need you to sign? Are you designing flash interfaces for an amusement park or are they just shifting risk for any and all potential risks to their freelancers..... the latter I fear, which may encourage them to do things like ask you to "just copy the competition and tweek it a bit"
- aniphex0
It is pretty standard for an agency to carry a policy which is what your client is probably set up for. It is most likely a formality which you fell into as a freelancer. You can procure up to a million dollar policy at a fairly affordable rate depending on your needs.
You should definitely understand why you are being asked to carry the policy though and don't be afraid to ask questions... and get several quotes.
- formed0
what business is your client in? I get these all the time from construction (or related) companies. It is not applicable to what we do. It is for their subs that are doing the physical work, so they know that the subs are liable for poor construction, etc.
I just explain to their accounting dept. and they just go 'oh', and we are fine. Things move forward without the paper work, never had a problem.