Freelancer Liability Insurance Question

Xtopher

Xtopher

Well-known member
Hey everyone, I have been freelancing for an ad agency for about 6 months and they are wanting me to sign this subcontractor agreement this week. One of the things in it is that they want me to have "Commercial General Liability - $2,000,000 combined limit per occurrence; bodily injury, personal injury and property damage." Also, they want me to have Errors and Omissions Insurance. They also want me to have my auto insurance cover $2,000,000 per claim as well.

I guess I am wondering if anyone else has these things and how much they pay? I have only make about $5,000 working with them up to this point and I have heard that E&O can run up to $2,000 per year, so I am wondering if its even worth it to work for them, or if I need to up my prices to help cover these costs. Any input would be much appreciated, as I am new to this whole insurance thing. Thanks!
 
Not my area of expertise, so take this with a grain of salt. But I would think E&O insurance would be their responsibility. I'd think they would need it to cover their backsides in case something got on the air that shouldn't. They'd be the ones sued, not you. Of course, they'd have the right to turn around and sue YOU. But it wouldn't prevent them from being liable to the copyright holder.

My point is, if they have to have E&O insurance anyway, then what's the point of requiring you to have it too. You having it would be a good idea to protect yourself, but that shouldn't be their concern.

Am I wrong on this? Let's both ask people here with more knowledge on this subject, and see what they say. And as always, my advice on these matters is -- consult an attorney.

.
 
Hi Chris,
I have been through this as well. As a small business owner, I wanted to keep my overhead down as low as possible. I looked at cheap insurance through WEDJ.com and a couple of other 'membership' type groups that offer insurance to their members at a discount. This would not work for me as they have strict limits as to what they cover - Buyer Beware.
I ended up using The Hartford. Under $1200 a year, includes commercial liability, equipment loss, bodily/personal injury, property damage...etc.

In this day and age, I cannot imagine doing business without proper insurance (under the protection of my corporation).


Jason
 
I pay about $8,000/year for complete production insurance like you are describing, up to $2 million general liability, $1 million equipment damage, $1 million property, etc. It's not cheap... if they want you to buy all of that, as an individual who is freelancing more than running a production company, hmm, ouch...
 
You must log in or register to reply here.
Back
Top