ok, IT geeks.. who's a contractor

[MetalRose]

Kaosaur has it right.

Basically if you forget something and the company or person you are working for loses a ton of money because of it or if their reputation is accidentally damaged- this policy protects you from losing everything you have.

It's more or less the "same" concept as malpractice.

Here is a good article talking about it:

http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P12_9651

-MetalRose

 

[Bryant]

One thing that was omitted is bonding. I work in industrial automation and have thought about contracting as well. However, it would be extremely difficult for me to go into a manufacturing facility to do any process improvements without EO AND bonding. The price for that type of insurance and bonding for a small business (ala moi) would be astronomical, no matter my skill level and efficiency. Although the two are similar, they aren't quite the same. I am sure MetalRose knows more about that than I, but most of the industrial markets require both.


Bryant