In search of: Commercial general liability insurance for Web developer
August 28, 2015 6:35 AM Subscribe
I freelance full-time as a Web designer and developer in NYC. A new potential agency (which could send me a large amount of work with interesting clients on a regular basis) requires that I obtain commercial general liability insurance. They told me this should run about $400 per year. So far I have gotten three different quotes from insurance brokers and all are over $950 though.
My contact at the agency is unreachable on vacation for the next week; I will ask if they can recommend an insurance broker who can do it for this amount when then come back. But in the interim, can anyone suggest what the disconnect for me might be? One of the quotes I got (from the group that I thought would be the least expensive, Fractured Atlas) is comparable to the others costwise but includes additional coverage that I hadn't requested (e.g., Errors & Omissions coverage) but I know could be a good-to-have. But then I feel like I'm comparing apples and oranges.
And ultimately, where is this elusive $400 a year insurance? Is it a function of overall income? I noticed all of the brokers asked me how much I earn per year overall, which in my case would include many other clients who I don't need this insurance for.
I do have a joint homeowners insurance and car insurance policy with yet another insurance company, but they don't sell general liability policies. They did refer me to another broker, which gave me one of the $950-ish quotes.
Any advice you can offer an insurance newbie would be most welcome!
My contact at the agency is unreachable on vacation for the next week; I will ask if they can recommend an insurance broker who can do it for this amount when then come back. But in the interim, can anyone suggest what the disconnect for me might be? One of the quotes I got (from the group that I thought would be the least expensive, Fractured Atlas) is comparable to the others costwise but includes additional coverage that I hadn't requested (e.g., Errors & Omissions coverage) but I know could be a good-to-have. But then I feel like I'm comparing apples and oranges.
And ultimately, where is this elusive $400 a year insurance? Is it a function of overall income? I noticed all of the brokers asked me how much I earn per year overall, which in my case would include many other clients who I don't need this insurance for.
I do have a joint homeowners insurance and car insurance policy with yet another insurance company, but they don't sell general liability policies. They did refer me to another broker, which gave me one of the $950-ish quotes.
Any advice you can offer an insurance newbie would be most welcome!
Best answer: (1) Some insurers have a stupid policy stemming from 9/11 where anything below 34th street (IIRC) immediately gets you much higher rates ... you may want to check into that and use a different address if relevant and/or possible.
(2) Freelancers Union is a great place to look into insurance providers e.g. liability insurance. They may even have monthly rates instead of just the yearly option.
posted by rada at 7:26 AM on August 28, 2015
(2) Freelancers Union is a great place to look into insurance providers e.g. liability insurance. They may even have monthly rates instead of just the yearly option.
posted by rada at 7:26 AM on August 28, 2015
Don't have any cheap insurance places, but having previously worked in commercial insurance, I would highly suggest getting E&O and other applicable forms of professional liability insurance. Sometimes GL policies will have some limited PL coverage, but most of the good stuff is excluded. It's really cheap and can be a huge help if you ever mess up something critical that results in financial losses.
Is it a function of overall income? I noticed all of the brokers asked me how much I earn per year overall, which in my case would include many other clients who I don't need this insurance for.
The way insurance works, is anything that the policy covers, applies to all of your business. That's why it takes in account your total revenue. (They use that as an indicator of how much work you do, and as such, a higher likely-hood of a loss happening.)
Next time you're calling some brokers you might ask if you can get a project-specific policy. It will be just like normal insurance, but it will have an endorsement that says "this policy only applies to work done for company x, during the time frame of X." I'm not sure they actually do those for this type of policy, but it's something done all the time in the world of construction and for when certain companies require higher than normal policy limits. Couldn't hurt to ask!
posted by mayonnaises at 8:22 AM on August 28, 2015
Is it a function of overall income? I noticed all of the brokers asked me how much I earn per year overall, which in my case would include many other clients who I don't need this insurance for.
The way insurance works, is anything that the policy covers, applies to all of your business. That's why it takes in account your total revenue. (They use that as an indicator of how much work you do, and as such, a higher likely-hood of a loss happening.)
Next time you're calling some brokers you might ask if you can get a project-specific policy. It will be just like normal insurance, but it will have an endorsement that says "this policy only applies to work done for company x, during the time frame of X." I'm not sure they actually do those for this type of policy, but it's something done all the time in the world of construction and for when certain companies require higher than normal policy limits. Couldn't hurt to ask!
posted by mayonnaises at 8:22 AM on August 28, 2015
Response by poster: Everyone had such good advice, thank you! I am actually a member of the Freelancers Union but didn't think to check with them before now, d'oh! I found a much more reasonable policy this way. Thanks again!
posted by lgandme0717 at 11:01 AM on August 28, 2015
posted by lgandme0717 at 11:01 AM on August 28, 2015
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posted by oceanjesse at 7:08 AM on August 28, 2015