General Liability Insurance Essay

640 Words2 Pages

Suppose, working as an independent contractor, you design a customer database for a client. Imagine an unexpected glitch keeps anyone in your client's company from using the database for two weeks. Do you think you could afford the damages you could have to pay if the client sues you, claiming to have lost $500,000 in sales because your system didn't work? That is just one reason why you need general liability insurance for independent contractors.

You may believe it could never happen to you. You might believe your software could never completely fail. You may think your solution could never introduce a virus into a client's system or allowed a hacker to access the system or that you would never miss a deadline on a crucial assignment.

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This is especially true because jobs and technologies are so new, and the law is just now being shaped and defined. As a result, there is no clear standard you can use to defend your company that would show what a person could reasonably expect from your services. Dissatisfied clients could sue you. You could be sued if a client isn't satisfied with the job you have done, whether or not the claim would be valid. The client may believe your service or product should do something different than it does, even if his expectation is unreasonable. You may believe the product works perfectly. If the two of you can't negotiate a solution, you may be sued. Dishonest clients who have well-staffed legal departments may sue you--simply to avoid paying you for your services. Can you imagine explaining the situation to a judge, who may not understand technology? You can see why liability insurance can be so beneficial. You could also be sued for something you did (an error) or something you should have done but didn't (an

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