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:

 

Directors can't plead ignorance as cyber exposures multiply - Business Insurance

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Most directors and officers liability insurance policies do not specifically exclude cyber-related claims, but corporate officials must understand the nature of the risk they face. And because . EURœWhat's more important to business than technology .

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'Yates memo' outlines Justice Department expectations of federal prosecutors - Business Insurance

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The U.S. Justice Department's new playbook on individual responsibility in corporate wrongdoing, known as the EURœYates memo,EUR is a seven-page document written by Deputy Attorney General Sally Quillian Yates. EURœFighting corporate fraud and other misconduct .

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Protecting hospitals from pandemic losses focus of new coverage - Business Insurance

Protecting hospitals from pandemic losses focus of new coverage
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Axis Healthcare, a unit of Axis Capital Holdings Ltd., has launched insurance coverage that protects hospitals in the U.S. and Canada from revenue loss due to an outbreak of a contagious disease. The Axis Healthcare medical catastrophe business .

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Berkshire expands pro lines to include private companies - Business Insurance

Berkshire expands pro lines to include private companies
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Executive First Private Company Portfolio provides directors & officers liability, employment practices liability, fiduciary liability, employed lawyers liability and commercial crime insurance in one form for the exposures of privately held businesses .

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Illinois governor backs 'Democratic' state pension-cost plan - Business Insurance

Illinois governor backs 'Democratic' state pension-cost plan
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(Reuters) EUR” Illinois Gov. Bruce Rauner and Republican legislative leaders said on Thursday they will endorse what they called a Senate Democratic approach to curbing the state's $111 billion unfunded pension liability. But Senate President John .

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