He, he, he, he! This is why there is such a booming insurance industry.
Anyone can sue you for anything. Even if it is completely frivolous and
they loose the suit, you will expend a lot of money defending yourself, not
to mention the worry about losing. So, what are the possible scenarios?
Let's say you are kneeling looking at a collection object. Someone trips
over your extended foot and is injured. Or perhaps you have an examination
light, and someone trips over the extension cord and is injured. Or,
perhaps your examination light gets a bit too close to the curtain, and you
burn the place to the ground (remember when this actually happened at
Windsor Castle a few years ago?). There are lots of other possibilities.
Don't be comforted or lured into a false sense of security because your
client has insurance. Yes, their insurance will probably pay your client if
you cause injury or damage. But then, the insurance company will sue you to
recover their costs, plus the expenses of having to collect from you. The
only way you can protect yourself from this is to have you listed on your
client's insurance as an additional insured, and get a copy of the
certificate from their insurance company. You don't just want a certificate
of insurance, which they will give to anyone, but you must be listed on the
certificate as an additional insured, or you are not protected. You can not
just get a signed document from the client that releases you from all
liability. This may (or may not) protect you from your client, but it has
no binding effect at all on their insurance company. I have had a few
clients add me as an additional insured on their policy, but more often than
not, their insurance company won't do it as you are an individual, not an
organization.
The safest and easiest method to protect you from all of this is to carry
your own liability insurance. You may never have an event, but if you do,
it could be catastrophic without insurance. Besides, if the client requires
you to have insurance, it is a moot issue. And, remember, the cost is a
business deduction, which means that you are paying with pre-tax dollars,
saving you generally 30%-40% of the premium, depending upon your tax
bracket. Just to head off the questions, that's a savings of 15.6% in
self-employment tax + 15%-28% in federal income tax + state income tax too
if you have one. So, that $500 premium may really be costing you $300 or
even less.
Marc
American Conservation Consortium, Ltd.
4 Rockville Road
Broad Brook, CT 06016
www.conservator.com
860-386-6058
>
> On 7/2/08, Marc A Williams <[log in to unmask]> wrote:
> > I, too, have contracts that stipulate liability insurance, but some also
> > require workers' comp insurance. The liability is handled with
> a General
> > Business Liability policy through Huntington Block (the
> insurance folks in
> > DC, not the tax people). We consultants are small potatoes and
> generally
> > fall into the minimum premium category. A $1,000,000 policy is
> standard and
> > runs about $500 annually. If your clients are serious about
> LI, they will
> > require you to list them as an additional insured and provide
> them with a
> > certificate of insurance. I've had to do this for several clients - the
> > insurance company is used to it and hasn't charged me. Hope this helps.
>
> Workman's comp is one thing but I'd expect that you would be covered
> under your consultee's insurance (for example, your clients take you
> on a tour of the grounds and you twist your ankle by stepping in a
> hole. That should be under their insurance, not yours.) But what kinds
> of liabilities do you have as a straight consultant?
>
> deb
>
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