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Thimble offers short term policies you can start and stop. But yeah, insurance isn’t that weird of a requirement, not everybody asks for it but some do
Indeed, a lot of business expenses are more expensive than an adobe subscription 😂 (even just to do business in California is $800/yr llc tax. Not sure where you’re based.)
The general liability + professional liability/e&o quotes i got were in the $1200-1500/yr range but you should compare quotes from a few places. If you just need general liability it’s significantly less. And if you only need it for a month you can just stop the policy after the month, then you’re just out about $100, and of course you can write it off on your taxes.
You can weigh whether this makes sense of course too based on the value of the contract, that’s the perk of freelance - generally the places that required me to have insurance are large holdco agencies and direct to brand clients. If it’s not worth it for you maybe ask to go w2?
It’s rare, but I’ve had a few clients that required it over the years. fortunately, I already have it, so I just keep renewing it just in case. I got mine through bunker and it’s not that expensive.
The way I understand it is it protects me too. Let’s say they give me bad info and I help them make a fraudulent claim. If it’s something where they could get in trouble / get sued, it helps cover my ass. On the other hand, if I go rogue and put some crazy stuff in copy that goes out to the world, maybe it protects them too. Not as sure on that part.
Never in my case, whether it’s W2 or 1099.
Coach
Sounds like a typical lawyer BS blanket clause. Tell them you’re not an LLC. Often they’ll bring you on as W2
Upload your contract to GPT, explain your issue and have it write you a rationale for why you shouldn’t need to have coverage given your role. I’ve done this and it will write you something pretty strong.
If you do have to get insurance (I’ve had to 2 or 3 times) just make sure the policy can be cancelled any month and it’s not long term. I end up flipping it on and of like it’s a Netflix subscription and it saves me a lot
1. Ask them to strike it from contract (easier if low risk i.e. - you're fully remote, aren't dealing w. Sensitive info/PII, etc.)
2. If that doesn't work ask them to do W2 vs. 1099 to get covered by their insurance
3. If that doesn't work and you want the project, get the most affordable temp ins. That they'll accept (and sometimes you can negotiate w/ the client on that too)
They sent a new NDA, and it looks like they have a very stupid policy of not differentiating between a freelancer and company of thousands. This is some new policy that doesn’t seem well thought out at all.
I pointed this out and they are “discussing things” internally (I annoyed them with a lot of questions about info requirements in the NDA that have nothing to do with me).
What I might do is agree to the requirement if they agree to a 2% surcharge on my fees.
Yes it’s normal to have Busness insurance if you’re a business