We live in a litigious society today. Even if you are self-employed, you need to have self- employed liability insurance to cover any potential lawsuits. It is actually more important for a self-employed individual to have this coverage since the total sales, less taxes, is what the self-employed person lives on.
Unfortunately, people will file a lawsuit, regardless of how frivolous it may seem to be, hoping that the person being sued will simply settle it. Sadly enough many do just that in order to avoid publicity or any other situation that may put their business in a bad light.
Anyone who is self-employed and brings the public into his or her place of business needs self-employed liability insurance. It does not matter whether your business is located out of your home, on an office that you rented on Main Street. If you are operating your business out of your home, you will need to have separate coverage.
This will be a policy complete separate from your homeowner’s insurance. If a customer comes to your home, and you do not have a separate policy, the insurance company will likely deny your claim because it occurred when you were conducting business.
The amount of self-employed liability insurance you need depends on a number of different factors. An insurance professional can help in this area, but you should always have at least a million dollars coverage. In fact, if you rent office or other commercial space, most property managers will require that you have at least that much.
The price for coverage in that amount is surprisingly affordable when you take into consideration the help you will receive if anyone ever does file a liability lawsuit against you or your business. If your budget allows for it, you may want to consider making it a little higher than that.
Never consider self-employed liability insurance to be a luxury. It is in fact, a necessity and if you try to operate a business without the insurance, it is just being irresponsible. To operate without it puts the business, your financial future and that of your family in jeopardy. Contact an insurance agent today, if you do not already have a liability policy and start your coverage as soon as possible. If an accident happens, even something as simple as someone tripping over a loose corner of the carpet, you will be glad you did!
By James Clapton