Do employers’ policies give software consultants professional liability coverage?
Software consultants who work for an employer may have some professional liability coverage through their employer’s insurance policy. Whether professional liability coverage is afforded largely depends on the employer’s policy and the employment situation.
Consultants who are actual employees likely do receive at least some coverage from their employer, although the coverage may not be as much as they’d like. Additionally, any employer-provided coverage, in this case, is probably limited to work done for the employer — and unlikely to cover moonlighting or side gigs.
Consultants who operate as independent contractors may receive coverage from an employer that hires them, but they’re less likely to. Most consultants in these situations have to purchase their own E&O insurance.
In either situation, a knowledgeable insurance agent can help consultants make sure they have coverage for all of the work they do.
How much are premiums for software consultant liability policies?
The premiums that insurance companies charge for software consultant liability policies vary, as they’re based on a multitude of factors. A consultant’s employment situation, the scope of work and experience are just some of the details that can impact the cost.
The easiest way to find out how much coverage will cost in a given situation is to work with an independent insurance agent. Independent agents are able to compare customized quotes from several insurance companies.