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>>I recently came across a prospecting customer who asked for liability insurance of up to $1,000,000. So this is where I started looking into this issue. I contacted one insurance agency and they, after interviewing me about my application, suggested that I do need Professional Liability Insurance.
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>Suggesting that you need to buy their stuff without an interview would be unprofessional. And these guys ARE pros... not amateurs.
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>> And those policies are pretty expensive. Actually the prospective customer already issued a purchase order but included a clause indicating that my company should get liability insurance. I talked to another insurance agency and they said they can get me what is called "General Liability Insurance" which is less expensive. So I am working on getting the General Liability Insurance now. But still wonder if I will or not in the end get the Professional Liability. I may have to raise the price for my application to cover for the added cost which will make me less competitive. And I will talk to my lawyer this weekend (my brother-in-law <g>) see what he suggests.
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>It's all a racket, IMO, but if the end customer is willing to pay a more expensive app because of that, then they should get what they pay for.

The point is that the customer is not willing to pay more; they want me to pay more :). But I will still be investigating on what is the fair price for me to buy Professional Liability Insurance for my type of business application.