Liability Insurance on a Per Project Basis

[ee2002]

Has anybody obtained liability insurance on a per project basis? My employer just recently gave me the opportunity to moonlight and stamp my own plans using his company resources. This is because I give him a percentage of the project fee for using his equipment and supplies. It does not financially make sense for me to get insurance for myself full time since I am currently employed. So, has anybody been in this situation before? Now I am wondering if it would make sense to create a separate entity for tax purposes.

Any and all feedback is appreciated.

 

[wes616]

I know it is possible in other industries. My ex-wife sets up companies for film production, and they buy their insurance (both liability and e&o) on a per-project basis. You may have to call around a bit though - and it will cost a little more obviously.

Wes C.
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Light travels faster than sound. That's why some people appear bright until you hear them speak.

 

[wes616]

what state are you in?

Wes C.
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Light travels faster than sound. That's why some people appear bright until you hear them speak.

 

[Ussuri]

I used to work for a consulting engineer that did that as standard. The contract always stated a financial limit of liability as a multiple of the fee.

They used to have project specific PI insurance as well. If the contract specified minimum PI of 2 million thats what the get, if the contract stipulated 10 million, you get the idea. They even had certificates specific to each one.

 

[ee2002]

wes616,

I am in CA.

Thanks.

 

[Ashereng]

Liability insurance per project, as I have been exposed is usually on fairly large dollar projects - more than a single person can do part-time.

I think the reason is because the cost is very large.

"Do not worry about your problems with mathematics, I assure you mine are far greater."
Albert Einstein
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[Ron]

I think you'll have a problem getting E&O insurance on a small, per project basis...but try anyway!

As for your employer, since he condones your moonlighting and even benefits from it financially, you've probably created a liability path to him as well.