Professional Indemity Insurance

[nerby_oz]

Hey,

I'm currently writing up a business studies plan for school and was wondering about the cost of professional indemity insurance for the Web Deveoping community with no employees and turning over AUD$25,000 P/A (Approx). I just need an approximation figure and the currency you are quoting in.

Ok thanks alot in advance.



Nerby
[Edited by nerby_oz on 07-05-2002 at 11:59 PM]

[serpent star]

I'm guessing I am not that unusual in that I fly by the seat of my pants. That's the american way isn't it. Have thought about it though and am also curious.

[hurricaneone]

Isn't that indemnity? (Sorry)
Anyway, having thought about it, I don't know if you (or I), as a designer, could insure yourself against professional loss. What would you be insuring yourself against? Non-payment, I guess, but could you realistically afford the premium on AU$ 25,000 (especially after you made your first claim and watch you premium sky rocket), and two, which trustworthy company would write the policy?

Hey, if you do find out about what the policy would cost, let me know, OK?

[nerby_oz]

What i would be insuring yourself against would be clients wishing to sue due to not been happy with the work and this causeing them finacal problems, clients that need there work done with a dead line and failing to complete this.


So basically it covers me if i do the wrong thing so i get to keep my house when i stuff up ... :P


Yes and i do want to find out what a policy would cost so i can put it in my cash flow.
Thanks

[serpent star]

I know in the U.S., making your business an LLC protects personal assets from this kind of thing. I believe in an LLC, much like a corporation, you are only liable up to the value of the business' assets.

[nerby_oz]

In Australia you can make your business either a private or public company and that does the same, im setting up as a sole trader in my business plan and i dont want to loose all my business assets either over one mistake. So thats why im choosing to run the business with insurance.

[Agent_Coop]

LLC's vary by state, and their is a huge misconception about the liability part.

The Govt. can ALWAYS rule that you are liable if you violate the rules or they rule that your corporation is not a corporation (often in the case of 1 person businesses).

I'll look around for some links we have on the subject...my wife & her associates form them for a living....

I have business liability & errors & ommission insurance. That, coupled with a standard homeowners policy covers us fairly well.

I am also a licensed insurance agent..but..can only speak for our local area here in Redmond, WA...so that standard disclaimer is...check you local area..

Start by calling your auto or home insurance agent to see if they have a Business Unit who can help you...

[OddDog]

dam, that is something new to think about.

thank you !!

[BenW]

In UK I pay about £400 for general business insurance which does my indemnity (up to £10,000,000) and contents insurance policy. The company is small so the odds of a client suing us are low, (if they dont like the work they can tie me up and kick my ass till I get it right (hasnt happened yet thank gawd)) A bigger danger is someone suing me for my software messing up their pc, or them tripping and injuring themselves in my office. Saying all that tho, if someone did want to sue me I'd be bankrupt after 2 hours with a lawyer, so they wouldnt get much from me anyway (apart from ruining my life and sending me into a downward spiral into the gutter).

[nerby_oz]

Yer this is an assigment when i actually do start up im not getting this insurance they cant get blood out of a stone right?