This question is regarding working in the USA. For the past year and a half I've just worked as a contract (1099, a 1099 contract worker is someone who is self-employed and works for another company) c# programmer for a local company. I have another company wanting me to do some programming for them. Do I need to get Errors and Omissions Insurance as well as Liability insurance? I'm concerned with getting sued if I make a mistake that costs the company revenue or if the project I'm building for them gets hacked. Also having insurance could be a bonus selling feature to future clients and a competitive advantage over other programmers.

  • 2
    Have a warranty + disclaimer in your contract. Also, the company is the one that needs insurance, but 90% of the time that company also mandates that the contractor also has insurance so they don't have to pay for claims on their own insurance, which is quite possibly murky legal territory.
    – Amelia
    Jul 24 '15 at 12:16
  • Related: freelancing.stackexchange.com/questions/3340/…
    – halfer
    Jul 24 '15 at 18:41
  • Any development contract I take, I always work into the agreement as to what I can and cannot be liable for. I mentioned in a different question about liability which you may find useful freelancing.stackexchange.com/questions/4583/…
    – Memj
    Jun 19 '16 at 4:05
  • 3
    I have a clause where I accept no liability whatsoever for anything. Has always served me well. If a question is ever raised I say it is their job to test what I give them (but in much more frothy customer service orientated language of course).
    – PaulD
    Sep 2 '16 at 12:03

I've done freelance software contracting since 1982 and only get Bus. insur. when client asks for it. I have never heard of a programmer being sued.

Unfortunately, over last few years, Bus. Insur rates have gone way up.

Be careful what you tell an insur. company. Certain keywords are red flags: like automotive. I said automotive, and they practically hung up!


Not int the us, but should be applicable as well. I have basic P&I and usually exclude any liability that exceeds my insurance in the contract. I offer to up the liability if client feels it is needet, but they need to compensate the addirional cost.

Note that total exclusion of any liability would be illegal here in germany. You are always liable for harm to persons and culpable negligence here. So getting insurance is kind of a no-brainer.

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