Liability insurance

[Robert Haussmann]

> For all of you small software businesses out there, can I solicit your
> advice? What are you doing for liability insurance?
> 
> Here is my situation:
> 
> 1) I rent offices from a commercial company.
> 
> 2) They require me to carry premeses liability insurance.
> 
> 3) My existing policy expires, and that company isn't doing 
> this any more.
> 
> 4) My agent tells me that nobody will offer premeses 
> liability insurance
> to a software company without including "professional" 
> liability (covering
> Errors and Omissions, etc.) also.
> 
> 5) Professional liability is very expensive, over $5000 per year.
> 

Seriously?  Find another insurance agent.  I'm sure it depends on 
location and other factors, but I've maintained a policy that covers
both premises liability (w/ umbrella) as well as professional 
liability (Errors and Ommissions policy), and it has never cost more
than $1090/year.

Alternatively, you could set up a holding company and move the lease
to in this name.  The only expenses paid out of this company would be
the lease and the liability insurance (which would be a standard 
liability policy because the holding company is not a software 
company).

Of course, I'm not a lawyer.  Or an accountant.  But someone who is
would likely have a better answer.

Bob