ARCHIVE: IT CAREER EXPERT
Professional liability insurance
John Smiley
01.04.2001
Rating: -4.00- (out of 5)
Starting out in Consulting -- Professional Liability Insurance
I've written a few tips on starting out in the consulting field. In my
last tip on the subject I dealt with an issue that can be crucial in
determining your success or failure as a consultant -- setting your
billing rate. Today I'd like to discuss something else that can be just
as important if not more so -- Professional Liability Insurance.
Think of Professional Liability Insurance as Malpractice Insurance for
software developers and consultants. This insurance can provide you
coverage in the event that one of your clients brings a claim against
you and your work (it can happen.) Professionals such as architects and
accountants have used Liability Insurance for years. Recently, software
developers and consultants have embraced the protection that
Professional Liability Insurance can offer (there's also a subset of
Processional Liability Insurance designed specifically for software
developers called Errors and Omissions coverage.)
Professional Liability Insurance coverage is not cheap, but the peace
of mine it gives you may be well worth it.
I spoke with one associate of mine who told me she picked up a one
million dollar Professional Liability policy for about $1,500 and is
extremely pleased to know she's insured not only against mistakes she
might make, but mistakes her clients believe she's made (obviously,
there's a difference, but in a court of law that may not be so clear.)
Another associate of mine, Bob Lautenbach, president of Bayside
Technology (http://www.baysidetech.com) points out that not only does
Professional Liability Insurance provide you with protection, but in
many instances, on prospective jobs he's been asked to bid on as a
subcontractor, Professional Liability Insurance was a requirement in
order to win the contract. Bob points out that coverage is available
through most insurance brokers but be sure to read the fine print. Like
all insurance policies, Professional Liability policies have exceptions
and exclusions, so make sure you know what they are before committing.
The bottom line is that Professional Liability insurance is a cost of
doing business and you should seriously consider it in your consultant
practice.
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Written by John Smiley, MCP, MCSD and MCT, author, and adjunct
professor of Computer Science at Penn State University in Abington,
Philadelphia University, and Holy Family College. John has been
teaching computer programming for nearly 20 years.
John Smiley is president of Smiley and Associates,
http://www.johnsmiley.com/smass/smass.htm a computer consulting firm
located in New Jersey.
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