Re: contractor insurance

["Kat Nagel" <kat_nagel -at- rte -dot- com>]

> I'm hoping that you can help me with some information. I've been
> contracting with a small New England company for about a year and
they
> have recently asked me to carry workers comp. and liability
insurance.
>
> I'm trying to learn if this is a common request

Workers Comp
----------
Yes.  And it's becoming more common every year.  If you contract
through an agency, check with them.  Some agencies in our area now
provide this for their people.  If not, ask your insurance agent.
Many of them can provide this.  Just be really careful what industry
category you are assigned.  Technical writing can fit under many
different ones, and some of them are very expensive.

Many of the computer-related professions, for example, get lumped
with 'electrical workers' and the rates are astronomical.  Some of
the 'publishing' categories are rated as if you work with huge heavy
presses and slippery inks.  Not at all appropriate for what we do.
Try for 'consultant' or something that sounds like you
interview/research/write, not something that sounds like you work
with heavy machinery or electrical wiring.

Liability Insurance
----------
This is harder to answer.  It depends on the type of liability
insurance they're asking for.  Standard business liability insurance
(somebody trips over your briefcase and breaks a leg, or you drop a
monitor on somebody else and break HIS leg) is commonly required in
this area.  It's relatively inexpensive, and your regular insurance
agent should be able to obtain it for you.

'Errors and Omissions' insurance, on the other hand, is malpractice
insurance for writers.  There are reasonable group policies around,
if you look hard enough, but individual policies are very expensive.
The rates reflect the possibility of nasty lawsuit settlements.


> and if contractors are
> carrying either or both.

I carried both Comp and Gen. Liability for the 14 years I
freelanced.  E&O was out of my price range, so I either turned down
the project that required it or worked that project through a
friendly contract agency who agreed to treat it as a
pass-through---charged the client my regular rate, didn't deduct the
usual 15-50% management fee (since I found the job myself and took
care of the taxes) and only deducted enough to cover the pro-rated
insurance premium.  Since they got a better group rate than I'd get
as an individual, it was much less expensive for me that way.

Kat Nagel
Senior Technical Writer
Real Time Enterprises      http://www.rte.com
kat_nagel -at- rte -dot- com