Looking for source of low-cost errors & omissions insurance

[Shinken]

I'm starting up a computer support business and am trying to find a source of relatively low cost errors & omissions insurance. So far, I've had several quotes in the $1500+/yr range, which seems very high.

Does anyone have any suggestions or recommendations?

Are there any associations for independent computer professionals that may have group insurance policies available?

Thanks,

S

 

[pansophic]

As far as I know, there are only group policies for Health Insurance. Your E&O policy is so high because you are providing advice to others on how to do something. You are therefore responsible for all of the ways that advice can be misinterpreted.

It should be dependant on your annual revenue, but I wouldn't think that $1500 is all that high. I assume that it is for about $1M policy?


pansophic

 

[Rich13]

You might contact whoever handles your other insurance needs (car, home, health, life, etc.) for quotes or at least referrals to someone who will quote. You could also ask your friends and employer who handles their insurance too.

Whether or not the $1,500 quote that you got is good or not depends on many factors, such as how much coverage you would get ($1m? $2m?), your deductible ($0, $1k, $5k?), what's covered and what's excluded (example: are copyright violations covered?) your intended activities, your intended clients, your experience, your credit worthiness, and last but not least, what the market will bear.

By all means, get competitive quotes and play the two offers off each other (if possible) to improve your coverage or reduce your premium. No matter what the quote, ask what you can do to lower the premium. There may be special, unadvertised "programs" that you learn about only by asking. Also, there might be exclusions that you could agree to that won't hurt you, but reduce risks to the insurance company, so they'll pass along a reduction (like agreeing not to service nuclear power plants).

Good luck,

Rich
rckatz_usa@comcast.net