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I often work as a W2 employee, but I sometimes get freelance opportunities. I write code and do systems administration, and I have examined different insurance products. I want something that is very protective based on the contract work that I get. In my experience, many insurance companies say they do not have a good product for what I am trying to get coverage for. I have tried contacting insurance companies that are more geared toward I.T. services, but still the products have serious flaws. One disadvantage is the list of exclusions. This is a serious concern because when I have an attorney review a client's contract, the attorney advises me that the indemnification clause is too broad. Some attorneys have told me to go to trade associations and see what they use.

The client sometimes refuses to change the contract language. It takes time to get an offer for a new opportunity. Many nerdy I.T. people have low tolerance for risk. How can I find insurance coverage that will protect me against broad indemnification clauses? Or how can I find more clients like those rare ones that do not require indemnification agreements in their contract terms or have no contract at all?

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TBH, your difficulty in finding insurance is a little baffling to me. Many business insurance providers have policies geared specifically toward IT contractors and freelancers. Most likely what you need is Professional Liability Insurance and General Liability Insurance.

Personally, I use Hiscox for both. On their home page you can select your State, profession, and get a quote in less than 30 seconds. You can also reach out to them to discuss your specific needs, but I suspect that your situation isn't as unique as you think it is. You're not the first independent IT contractor to ever exist. Hiscox and the like have been doing this for a very long time and have the knowledge and expertise to put you into the appropriate policy.

In short, you can't avoid your exposure to liability. You're exposed to liability with every customer and every project. What you can do is to protect yourself against claims of liability. That's what business insurance is for.

Additionally:

A contract is a mutual agreement between parties. If the client's contract doesn't suit your needs then you need to have them amend it or you need to submit your own contract.

You should never enter into any business arrangement or agreement without a contract or without the appropriate insurance.

You can and should include your own indemnity clause in your contract.

If I can't come to an agreement with a client as to the terms of the contract then I walk away. I'm not beholden to them or obligated to accept their contract. I have as much right as they do to ask for terms that are favorable to me and protect my interests.

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