Self Employed Liability Insurance - Is It Really Necessary?

Whenever you are employed by a company you are doing most things in the name of that employer.

You are doing as they ask, so when a thing goes wrong, especially when there is a suit filed against you or the business, the company is responsible for attending to it.

Liability insurance is what generally pays for the claims against the company for personal injury damages as a consequence of defects in the goods and services provided or just on the business property itself.

But let's say you run a consulting business, an internet business, or some other sort of enterprise from home. A client shows up to your office for an appointment and slips on an icy step and gets injured. In the event that he or she decides to sue you, you have a bad situation on your hands if they win their slip and fall settlement in court.

You might wind up paying for medical fees, personal injury compensation, lost income as well as other compensation including pricey legal fees. Finding cash for this may prove quite challenging if not impossible without the bankruptcy of your business and perhaps the loss of your personal property too.

A self employed liability insurance policy can protect you from this sort of scenario. Look into different policies and decide upon the one that will provide you the coverage you need. An insurance agent who is essentially a person who provides public liability insurance for self employed people can help you make a well educated decision about which policy is best for you. The self employed liability insurance will have a limit up to which it will cover rewards and legal fees.

Another good option is to have a personal umbrella liability insurance policy. This is good for everyone, not just for contractors, but can be very handy for independent contractors and other people who are self employed because it provides additional protection of the personal assets not related to the company.

What a personal umbrella liability insurance policy does is provide protection above the limits of other policies you hold. For example, if you have home owner's insurance policy with a limit of $200,000 and a fire causes twice that much damage, your personal umbrella policy will cover the second half.

When you have a contractors liability insurance and personal umbrella policy set up, you are able to sleep easy realizing that you are not really vulnerable to losing your entire organization because of one mistake or incident. Plus the personal liability insurance policy cost just isn't very much compared to what you get in coverage. It can mean the difference between losing your business and keeping it.






 

Commercial Insurance News:

 

Hanover Insurance expands general liability, umbrella coverages - Business Insurance

Business Insurance

Hanover Insurance expands general liability, umbrella coverages
Business Insurance
The umbrella liability coverages help eliminate potential gaps in coverage, and allows agents to offer additional protection in the event of a catastrophic loss, with limits that go beyond their clients' scheduled general liability, commercial auto and .

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Self-driving cars avoiding the body shop - Business Insurance

Self-driving cars avoiding the body shop
Business Insurance
Hard telling whether this breakthrough will trickle down to company cars and fleet insurance, but Google's findings sound like a good reason for drivers to focus on the road. EURœOur safety drivers routinely see people weaving in and out of their lanes .

and more »
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Towers Watson buys health plan technology firm - Business Insurance

Tampa Bay Business Journal

Towers Watson buys health plan technology firm
Business Insurance
Acclaris will continue to be based in Tampa and will operate as a separate line of business within Towers Watson's exchange unit. It will keep its name for the foreseeable future, and all employees will be retained, a Towers Watson spokeswoman said.
Towers Watson buys Acclaris for $140mInsurance Business Review

all 12 news articles »
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Workers comp opt-out plan challenged in Oklahoma - Business Insurance

Business Insurance

Workers comp opt-out plan challenged in Oklahoma
Business Insurance
The association EURœsupports state-specific options because they provide an enhanced process, improve outcomes for employees, and interject free-market competition,EUR Executive Director Richard Evans said Wednesday in a statement to Business Insurance.

and more »
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Insurer not liable for cyber policyholder's defense - Business Insurance

Business Insurance

Insurer not liable for cyber policyholder's defense
Business Insurance
In one of the first coverage rulings involving a cyber insurance policy, a federal court has ruled that a Travelers Cos. Inc. unit is not obligated to defend a policyholder. Salt Lake City-based Federal Recovery Services Inc., which is in the business .

and more »
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Moody's downgrades Chicago credit to junk on continuing pension concerns - Business Insurance

Moody's downgrades Chicago credit to junk on continuing pension concerns
Business Insurance
Moody's Investors Service downgraded the city of Chicago's credit rating to Ba1 from Baa2 as a result of the Illinois Supreme Court's ruling May 8 that the Illinois pension reform law of 2013 is unconstitutional. In a news release on Tuesday, Moody's .

and more »
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Hormel gets tentative OK to fund benefits through captive - Business Insurance

Business Insurance

Hormel gets tentative OK to fund benefits through captive
Business Insurance
Hormel, the Duluth, Minnesota-based meat and other food products producer and marketer, wants to use the captive, Diversified Foods Insurance Co. L.L.C., to fund life and accidental death and dismemberment benefits for its employees. Policies would be .

and more »
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Generali posts best quarterly profit in 7 years - Business Insurance

Business Insurance

Generali posts best quarterly profit in 7 years
Business Insurance
(Reuters) EUR” Italian insurer Assicurazioni Generali S.p.A.'s first-quarter operating profit rose 6% to top forecasts as growth in its life business offset a fall in nonlife activity. Europe's No. 3 insurer said the figure stood at ‚¬1.33 billion ($1.51 .
Generali net rises, boosted by life insuranceMarketWatch
Generali Q1 Operating Profit Rises 6% to $1.5B on Investment IncomeInsurance Journal

all 17 news articles »
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