[TriLUG] OT: getting liability insurance

[Steve Litt]

On Sunday 03 August 2008 16:17, Matt Frye wrote:
> On Sun, Aug 3, 2008 at 11:25 AM, Steve Litt <slitt at troubleshooters.com> 
wrote:
> > I don't take contracts requiring the signature of an indemnification
> > clause, a noncompete clause, or my providing insurance. Yeah, I lose a
> > few contracts, but all those things are contingent liabilities that last
> > decades. Who needs the worry.
> >
> > If the customer insists, I'd personally charge them the entire cost of a
> > year's liability insurance. If they balked, I'd walk.
> >
> > SteveT
>
> That's a pretty hard line.  

I should mention that I don't string cable, I don't move hardware -- I teach 
courses. If I did remotely dangerous stuff, I'd have insurance.

> To each his own, but I've never had a 
> potential client that was worth losing over a lousy few hundred bucks
> per month.

Yeah, in many disciplines that would be true. My experience with 
Troubleshooting Training, each client is good for one and only one course, so 
$1000 for insurance is easily 15% to 33% of my profit on the job. Even so, 
that might be good enough when spread out over a years worth of courses. But 
read on...
>
> Noncompetes are a totally different issue.

They sure are. Even worse are indemnifications, which put you on the hook for 
your net worth if some third part sues your client claiming, rightly or 
wrongly, that you did something wrong. Indemnifications have no time 
limitations -- you can get nailed 20 years from now for a job you do today -- 
within the confines of the statute of limitations.

My experience has been that when they ask for insurance, there's also both 
indemnification and noncompetes, usually both overly broad. Not only that -- 
ask your insurance company -- they protect you only when it's your fault. If 
some bozo sues your client claiming you screwed up, and you DIDN'T screw up, 
your insurance won't pay because you did nothing wrong. But you signed a doc 
saying you'll be responsible.

For me, it's better to suggest they simply license my materials and have their 
own instructors teach my courseware, or else just put my energies toward 
other clients.

Obviously, YMMV.

SteveT

 
Steve Litt
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