Another thing to consider is the following: I had a client who had an employee who sold knockoff perfume on the side. Unknown to the client, the employee would come in early and use the phones to make sales. The company was sued by the perfume manufacturer for selling the knockoff. It ended up costing them over $100,000 and legal fees.
In our case, an employee's client could sue us if something goes wrong. You never know how a judge will rule and the judge may rule that he was an agent of yours and you are responsible. It's happened before. Will malpractice insurance cover us for that? I don't know.
