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CAD and Insurance

CAD and Insurance

CAD and Insurance

Hi all,

I have been reading a lot of your posts regarding e&o insurance and have a question for you.  I am starting a LLC doing basic CAD work, solid modeling, and design work for OEM's (basically designing plastic parts, rubber buttons, some chassis work for machines, ect...)

I am still slightly confused about whether or not I should purchase E&O insurance.

Any insight would be appreciated!

RE: CAD and Insurance

If your clients say you need it, then you do.  If you use written contracts, you may be able to limit your liability to the amount of the fee.  Otherwise, you need to make a business decision about what risk you are assuming given the industry, the clients, and your role in the overall process.

Don Phillips

RE: CAD and Insurance


Hate to say it, but if you have concerns you may want to consult an attorney on it.  The whole purpose of the LLC is to greatly limit your personal liability - that's the sole reason the stucture exists.  If you have some specific questions, run them by your attorney.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website: www.oil-gas-consulting.com

RE: CAD and Insurance

Thanks for the info.

I intend to talk with an attorny, I was just hoping to get some of your feedback first.  So far my clients dont require e&o, most of them dont have it themselves, or have not heard of it.  I guess this is why I question the need.

Did any of you purchase this insurance right up front when you started, or did you wait until the buisness could more or less afford it?

RE: CAD and Insurance

I ran bare, part time, since 2002 but purchased it for 2008 when my new client (95% of my billings) required it.  Now I am using it as a marketing tool.

Don Phillips

RE: CAD and Insurance

I would buy it especially if your customer doesnt have it because if something fails they will look for the next in line!

RE: CAD and Insurance

According to that logic, you shouldn't get it

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