I work on projects as a contract Instructional Designer. I typically contract with a company that sells training services and then they have me work on a project for their client (for example, a bank), where I develop ILT or WBT courses. I'm wondering if I really need Errors & Omissions (professional liability) insurance -- no one has ever required that I have it so far. I'd like to hear other ASTD members' thoughts -- especially contract Instructional Designers who have had to use the insurance. Thank you. (littlestone47@verizon.net)

I would play it safe and get an E&O policy, even though in the instructional design industry it's not necessarily clear-cut that you would need it. I'm not an attorney, of course, so I can't offer professional advice, but my opinion is that it would be possible for a bank, for example, to link back a series of errors on the part of one of their employees to training they received, designed by you. It sounds like a stretch, but it's possible. Better safe than sorry. If you want to avoid the addded expense of carrying E&O, have you considered working through an employer of record? It's a great option for consultants - depending on which company you choose to work with, you could be covered under their general liability and E&O umbrella.

My gut reaction is that this type of issue is (should be) handled by a combination of a clearly written contract as well as very specific sign-off on deliverables from relevant stakeholders. For example - I would never begin design without sign-off on the requirements and never begin development without sign-off on the design...and so-on...

(Golden rule: Never take responsibility for the accuracy of the content unless you have contracted/touted yourself as the sole subject matter expert providing said content as well as designing the course.)

(I assume that we're not talking about content/skill that is life or death in which case I would assume one would first need to be accredited/certified to design/deliver the course in the first place.)

Good luck!

If you decide to get a policy, here is a great resource we used: http://www.techinsurance.com/

We went with The Hartford and have been happy with the policy. Couldn't hurt to get quotes, it may not be as expensive as you think. Our decision was easy because our clients require E&O.

Good luck!

Dan Longhouse
The LHT Group

I would ABSOLUTELY suggest that you at least look into the cost of Errors & Omissions Insurance. With all due respect to lovelearning who said:

My gut reaction is that this type of issue is (should be) handled by a combination of a clearly written contract as well as very specific sign-off on deliverables from relevant stakeholders.

...don't put your livelihood and/or your business on the line by going with a "gut" feeling here. Of course you should have what lovelearning said, but that's NOT going to prevent the stress that can result from either a frivolous or legitimate law suit. Knowing you have coverage eliminates the risk and the stress and the threat. Even if you never use it, it can provide peace of mind when or if someone threatens legal actions.

Keep in mind that you can be sued for almost any of your actions, or lack of actions in a training setting, even if you simply designed the training. People who sue may go after everyone and anyone they feel money can be squeezed out of, so you can still be thrown into the liability pot. Legit, or not. Protecting yourself should be a part of the cost of doing business.

Most professional associations have special plans available. Perhaps ASTD does.

Also consider your market. I've certainly come across organizations that required that I have it as a condition for doing work with them. I don't know if they would ask for it for straight design though, since I was doing both design and delivery.

Robert Bacal
Author, Perfect Phrases For Managing Your Small Business