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Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.

Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.

Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.

Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.

First, get some appropriate coverage. Based on my experience in the pharmaceutical industry prior to retirement, arranging liability insurance may take approximately a month. Having an active policy simplifies the process of demonstrating coverage or increasing the amount if needed.

Your specific requirements may vary depending on the industry context. During my career in pharma, before I retired, I encountered situations where documentation was necessary. For instance, on two occasions with different firms, I was asked to provide a copy of the articles of incorporation and proof of insurance AND a copy of my corporate letterhead. On another occasion, a major pharmaceutical company required evidence of a specific level of general liability coverage (which I believe was around $1 million) along with a certain amount of auto insurance.  And not an insurance issue. One time a third company required that all contractors/consultants were "hired" by a vendor and paid on a W2. The contracts person was understanding and we agreed on a satisfactory conversion of my consultant hourly rate to a W2 salary rate.

Caveat Emptor. I am not a legal expert!  My understanding is that one reason for these requirements was to substantiate the status of the contractor as a legitimate consultant, with payment via 1099 rather than W-2. Additionally, I learned that companies were implementing contract policies in response to the "Microsoft decision." This ruling led to clear definitions regarding the roles of contractors and consultants, stipulating that they can only work for a client for a maximum of 18 months. For more details on this ruling, you may refer to the article here: [Microsoft Decision](https://www.reuters.com/article/markets/companies/dont-treat-contractors-like-employees-idUSTRE53063S/
).

Moreover, in Pharma , further insights on liability insurance and indemnification, you may find valuable discussions in the book by Ellenberg, Fleming, and DeMets on the topic.
https://www.amazon.com/Data-Monitoring-Committees-Clinical-Trials/dp/0471489867

Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.

I'm also launching a freelance consulting business and this discussion of insurance is very timely.

Might I ask where people are getting professional liability (errors and omissions) insurance?

Also, are there clauses we can put in our contracts to reduce our liability and hence our insurance rates?  An online insurance form I worked through asked if I included indemnifying clauses or sign-offs in contracts. Sounds great!  Does anyone have experience with that?

Thanks,

First, get some appropriate coverage. Based on my experience in the pharmaceutical industry prior to retirement, arranging liability insurance may take approximately a month. Having an active policy simplifies the process of demonstrating coverage or increasing the amount if needed.

Your specific requirements may vary depending on the industry context. During my career in pharma, before I retired, I encountered situations where documentation was necessary. For instance, on two occasions with different firms, I was asked to provide a copy of the articles of incorporation and proof of insurance AND a copy of my corporate letterhead. On another occasion, a major pharmaceutical company required evidence of a specific level of general liability coverage (which I believe was around $1 million) along with a certain amount of auto insurance.  And not an insurance issue. One time a third company required that all contractors/consultants were "hired" by a vendor and paid on a W2. The contracts person was understanding and we agreed on a satisfactory conversion of my consultant hourly rate to a W2 salary rate.

Caveat Emptor. I am not a legal expert!  My understanding is that one reason for these requirements was to substantiate the status of the contractor as a legitimate consultant, with payment via 1099 rather than W-2. Additionally, I learned that companies were implementing contract policies in response to the "Microsoft decision." This ruling led to clear definitions regarding the roles of contractors and consultants, stipulating that they can only work for a client for a maximum of 18 months. For more details on this ruling, you may refer to the article here: [Microsoft Decision](https://www.reuters.com/article/markets/companies/dont-treat-contractors-like-employees-idUSTRE53063S/
).

Moreover, in Pharma , further insights on liability insurance and indemnification, you may find valuable discussions in the book by Ellenberg, Fleming, and DeMets on the topic.
https://www.amazon.com/Data-Monitoring-Committees-Clinical-Trials/dp/0471489867

Recently retired from my more-than-full-time "day jobs" and hope to continue with some consulting. I formed a single-member  LLC last year. I plan to bid on an RFP from the organization for which I used to work part-time. The standard verbiage in the organization's RFPs and contracts (I'm familiar with them from the other side, bringing in outside contractors) requires "commercial general liability" (CGL) insurance. As expected, this RFP does too. There is some flexibility for justifying deviations from the RFP's requirements in the narrative part of the submission.

I am a solo consultant. The LLC has no premises, no employees, and no equipment (well, it does own a large computer monitor for trade shows.) I work from home or at the client's premises. All client meetings are at their premises or online, never at my house. I have professional liability insurance ("errors and omissions") and cyber/data breach coverage. Opinions on whether I should get CGL? From what I understand, and my insurance agent agreed, my main exposures are covered by the E&O and the cyber; the things CGL covers are not really things where the business has much exposure. Thoughts?  Thanks.