Robert Franco's statement of response, although a one liner is most appropriate and relevant. More than likely, they are asking you to be thier independant contract, (a vendor, vendee relationship) a full time employee, employer relationship would not required that the employyee carry their own E & O Coverage,, as an employee's errors and omissions would be covered (normally that is saying) under your employer's policy of E & O Insurance. It sounds as if you need to research and understand the relationship nature they are seeking, if they want to contract you as a independant contract that is a vendor, vendee relationship.