Self employed liability insurance covers legal defense costs, damages and in case of injury, medical expenses of non-employees, should a lawsuit be brought against your business. Unfortunately, accidents happen. Perhaps you are a freelancer, for example, working from your home office. Should a client stop by for a meeting, trip on the way to your desk and become injured, you may be considered liable. With appropriate insurance coverage your business and family will be protected from significant loss. Typically, coverage includes bodily injury, property damage, personal injury, and some providers cover advertising injury (from slander, false advertising or copyright infringement).
The amount of self employed liability insurance coverage you need depends on perceived risk factors related to your work. General liability insurance is the most basic coverage, including injury or property damage. Professional liability insures against personal claims, such as malpractice. If your work includes instruction, consultation, providing opinions, designing solutions or other services where your advice could result in injury or damage, professional liability insurance may be right for you. An experienced agent will help to assess your needs, considering both perceived risk specific to your business as well as risks specific to the state in which you operate.
Work with an agent to ensure you understand exactly what you are purchasing. Look for self employed liability insurance coverage that includes 24-hour protection and covers legal and medical expenses. Your policy should state the maximum amount to be payed by the insurer overall. Also ask your agent if there is an occurrence cap, which is the maximum the insurer will pay per occurrence. Realize that if you are sued for an amount that exceeds your coverage, you will be responsible to pay the remaining amount. Also understand your premium will be based on the type of business you own.
Once you take the time to explore your options, you will find that self employed liability insurance is relatively inexpensive, the risks to your business and family outweigh the costs. Combined with insurance, ethical and sensible business practices will safeguard your interests. It is important to choose the right business structure, consider if you are best protected as a sole proprietorship or an LLC. Additionally, employ the use of legal contracts, agreements and document financial transactions. Keep customers happy, ensure they understand your policies in advance, and always promptly address complaints and concerns to reduce the risk of being sued.
