[consulting] Setting Up as an Independent Contractor

[Sami Khan]

> I believe that the kind of insurance they have is "errors and
omissions". 
> You don't want a situation to come up in which they pay you $2000 for a
> job and then claim that you made a mistake that cost them $2,000,000. 
You
> can say you've covered that with a contract, say with a clause that they
> can't hold you responsible for more than the cost of the job or
something,
> but there's no guarantee they won't take you to court anyway.  Lawsuits
> can be expensive, even if you win.

IANAL. Had this happen to me with a client, on the West Coast of the US. 
The whole point was for the client to avoid paying for the work. 
The code was GPL'd, by declaration in the header. So don't think this 
doesn't happen with Drupal, it very well does! I think a contract can 
save you from this if it is worded properly, but yes litigation does
happen or at least threats are used to intimiate people into settling for
smaller
amounts than the amounts owed. 

I would have to know how much the insurance costs before I would advise
anyone to get it though... A hundred or two might be worth it though, just
to know that you are safe no matter what.

Sami


> 
> Other kinds of insurance to think about -- your homeowner's insurance
may
> not cover computers used for business or may cover only a small amount. 
> Get a business rider.  It probably won't be very expensive and should be
> deductible as a business expense.
> 
> If you don't have a spouse or day job providing health care, etc., get
it
> somewhere else.  There are billing services out there that will act as
> employer of record (for a fee) and some of them participate in group
> insurance plans you can buy into.  MyBizOffice (mbopartners.com) is one
> that I talked to a few years ago when I was considering consulting
> full-time.  I'm sure There are others out there.  Looking at their web
> site, I see you also can buy E&O insurance through them.
> 
> Also, in the U.S., see if there's a local Small Business Administration
> office.  I'm in the Washington, DC area.  They provide some classes and
> mentoring.
> 
> Good luck,
> 
> Sheryl
> 
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