I'm a software developer specializing in web applications. Currently I'm working on a large project for a web design company in the USA - they're doing the graphical side of things but subcontracting all of the behind the scenes programming to me. Physically, I'm working here in the UK and everything is being done over the Internet.
As people seem to like to sue each other in the States as soon as they can after saying 'Hi!', I'm getting a little anxious about what could happen if things turn nasty between the web design company and the end client - if, for example, the client believes an error in the web application has cost them X amount of money in lost earnings or whatever, and they sue the web design company (although everything is hunky-dory at the moment and my work is always 100% perfect
). The likelihood is that the web design company would come after me to recover any money they had to pay out if they lost the case. So, unless I can prevent this occurrence in other ways (ideas, please!), I need to have professional indemnity insurance cover against this eventuality.
I got a quote from Hiscox for what I thought I needed, and it turns out pretty expensive when the USA comes into the equation - over £800 p/a for £250,000 cover, and unlike for their EU only cover, any defence costs have to come out of the £250,000, which could be pretty hairy. Cover of £1 million would cost me over £1600, making it marginal whether it's even worth doing the work.
Can anyone recommend anyone else, or any other way I can keep the cost down, or protect myself in other ways? Doing anything in the USA certainly seems to push up the premiums hugely, but maybe there's some insurance company out there who does not treat USA work so punitively?
I am a sole trader, incidentally - I have never set up a limited company to trade as (and I have been working in the field for over 20 years), although maybe it would be a good idea if I did?
As people seem to like to sue each other in the States as soon as they can after saying 'Hi!', I'm getting a little anxious about what could happen if things turn nasty between the web design company and the end client - if, for example, the client believes an error in the web application has cost them X amount of money in lost earnings or whatever, and they sue the web design company (although everything is hunky-dory at the moment and my work is always 100% perfect
). The likelihood is that the web design company would come after me to recover any money they had to pay out if they lost the case. So, unless I can prevent this occurrence in other ways (ideas, please!), I need to have professional indemnity insurance cover against this eventuality. I got a quote from Hiscox for what I thought I needed, and it turns out pretty expensive when the USA comes into the equation - over £800 p/a for £250,000 cover, and unlike for their EU only cover, any defence costs have to come out of the £250,000, which could be pretty hairy. Cover of £1 million would cost me over £1600, making it marginal whether it's even worth doing the work.
Can anyone recommend anyone else, or any other way I can keep the cost down, or protect myself in other ways? Doing anything in the USA certainly seems to push up the premiums hugely, but maybe there's some insurance company out there who does not treat USA work so punitively?
I am a sole trader, incidentally - I have never set up a limited company to trade as (and I have been working in the field for over 20 years), although maybe it would be a good idea if I did?
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