My company is giving us the option to either be a 1099 sales rep or W2 sales rep. Usually I would choose to be a 1099 with out question. Here's the catch.. the company is requireing each 1099 rep to buy an Errors and Omissions Insurance policy that will cost anywhere from $5000 to $8000 per year in premiums. Im trying to work out the math, but there are too many unknowns. Is anyone familiar with E&O insurance? Is this normal for orthopedic sales reps? My gross revenue is pretty low... less than 200k per year. Any thoughts?