Liability insurance for SEO/Web developers?

Does anyone carry liability insurance to protect them from lawsuits brought on by clients? I've never heard anyone mention it and wondered if anyone actually buys this type of coverage.

It was suggested to me by an insurance agent, but I don't see the need. I suppose it would be a kind of errors and omissions coverage.

Well, it depends on what claims you make to your clients. Do you guarantee top SERPs (if so, you may want to try another career field). Do you guarantee better results in a certain time?

Liability insurance is made for two reasons:
1. Protect customers from idiot business people - for example, protecting an SEO who gurantees a new site will be #1 in G for 'football' in three weeks.
2. Protect the average business person from idiot customers - for example, the candle maker sells a candle, the customer lights it and touches the flame and sues because there was no warning saying "Wick is hot when lit. Do not touch."
3. A mix of the above.

In SEO, if no guarantees are made, and since no personal injury can occur (a website never attacked someone last I checked), you don't need liability insurance.

Here's something to ask your agent: does HE have liability insurance as an agent? If not, maybe HE needs to buy some. ;)

What about if something you do tanks their site and they lose business because of it? Mightn't that fall under this idea? ( I used mightn't in a sentence how much of a nerd am I?)

Well, I'm giving the SEOer the benefit of the doubt, that they know what to do and not to do. Also, there are factors I'm not considering, otherwise the post would have been very very very very very very... and did I say very very very... with emphasis on very long.

I'm granting the SEOer does this:
1. Doesn't make foolish guarantees
2. Knows BH and WH techniques and what works/doesn't work
3. Explains the two options (BH/WH) to the client
4. If BH chosen, explains the risks (tanking the site)
5. Has it all in writing

Thats the key. Really thats the key in any business I have found....

I understand the risks involved - I'm just trying to find out if anyone in the field actually carries this kind of insurance. I tend to think it is not very widely purchased.

I don't carry it, nor would I.

A good contract is all you need. It's cover your butt better than any insurance will in most situations. Just make sure everything is outlined especially about none performance, tanking, algo changes, etc.

I got a death risk insurance incase someone kills me over a SEO issue. Thats about it. I never promise anything, I never make the changes to the clients web sites, I only do consulting. I charge 2.5 times less than I could.

Is that something like life insurance or a joke???

Thats a good point... consulting would be my choice if I could do it... you just give advice what they do with it is their business...

I agree.... As long as it is detailed in the contract and the client signs it you cannot be held responsible for anything which is detailed as a possibility in the contract.... With search engine rankings there are no gaurantees, only educated guesses...

The liability that can be propagated against an SEO would be;
1) False advertisement
2) Illegal ads (timeshare incentive packages in certain states can get you jail time and monetary damages)
3) Slander (false information that could damage ones company, reputation.)
4) Commercial sites (warrantee information, price indexing)

A limited liability package should cover small business up to 500,000, which would cost approximately $250 - $500 dollars per year.

I recommend S-Corporation to hold limited liability and that should keep them from getting to your personal assets under normal circumstances.

D

Be picky before you take a new client. Don't work for idiots.