>We are incorporated in New York and do business in and around NYC, the world HQ of Litigation, Inc.
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>We've never been sued either, but I've seen some awful things happen to some innocent colleagues.
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>A few thoughts:
>1. Incorporate or piggyback on another corporation. NEVER do anything as an individual.
>2. Have a contract that limits your liability to the refund of fees paid for your service or product, no matter how trivial the project.
>3. Don't give the vultures an attractive target. Stay lean and don't keep any appreciable amount of valuable assets - especially cash- in the company.
>My company doesn't have a liablility policy because we disburse all the cash as salary and the value of the assets at risk < the present value of the liability premiums required to protect them.
>The typical litigation attorney won't waste time suing a company with no insurance and small amounts of cash or other liquid assets.
>A liability policy gives them an inviting target.
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>If you think about it in our business which doesn't tend to have a lot of fixed assets, etc, a liability policy benefits the litigator more than it benefits us.

That is an interesting point. Makes me wonder...

We do have a fair amout of assets considering we are a tiny (my wife and I plus contractors as needed) company. It's all vehicles (just 1 actually), equipment, and software. I'd hate to have that cleaned out.



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>Some large clients require an errors and omissions policy.
>In those cases, we got one to cover that project and then cancelled it.
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>>>Welcome to the United States of Litigation.
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>We maintain liability insurance for errors and omissions and whatever else we've been required to have for various federal, state, and corporate subcontracting gigs. It's not horribly expensive.
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>Considering all the people I've met that would throw me under a bus rather than admit they were at fault, I call that a requirement. Yes - you've met them too.
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>We haven't been sued (or threatened to be) yet. But you never know..