Ask HN: Contractors, do you carry errors and omissions insurance?

3 points·StClaire··4 comments

If I wanted to take up a side-gig running data analysis, how could I limit my liability? Is that even an issue?

Well written contract, general liability and E&O are requirements. I have done it without even when I know better and the reality is you can never predict when some ass will sue you. And even the best contract can't prevent a suit. And even the best lawyer can't guarantee you an outcome. At least with a properly formed LLC or other Corp struct and the proper insurance and documents you are in better shape.

Side gig you could setup a LLC run it properly even without E&O and within reason if you do get sued the worst case is a judgement against the LLC. You will still be protected and only direct assets of the LLC would be at risk. Bankrupt it, close it and move on. Not advocating this way but this is how a lot of home contractors operate.

This is what I wanted to know, and what I suspected. Thanks!

Assuming you carry E&O, would you mind telling me who you buy it from?

Hartford typically. Get quotes from various top companies and see how they rate you. Your experience and history will affect your rates etc.

Generally depending on limits you are probably somewhere between $500/yr to $1500/yr. of course higher limits or high risk areas change those drastically.

There is an online company. I think called something like tech insurance and they write policies for most top end providers and get how to help freelancers and small consulting shops. I used them a couple of times in the past.

Also look into an umbrella policy personally too. There are some differences but it may make sense depending on your situation.

Thanks again!

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