Self Employed Liability Insurance - Why It Matters To You
There are many benefits to working for oneself. Some of the main reasons people choose to be self employed include extra freedom, income potential, and the appeal of owning a business. It's a completely different experience from working for somebody else. One of the biggest differences between working for a company and being your own company is liability. If an accident occurs or someone threatens legal action against your company, that affects you directly. That puts your time, money, and business as a whole at risk. That is why self employed liability insurance is so important.
Liability insurance protects the insured with legal issues. If you or your company can taken to court over something, that qualifies as a liability. Self employed liability insurance exists to protect self employed individuals in such cases. If a client sues you because she feels she didn't get what she paid for, the case could be handled through your liability insurance. If someone sustains property damage in the process of you doing your work, .you could be responsible for the cost of repairs and additional related expenses. If your liability insurance covers such cases, your risk in the case is greatly reduced. You can let the insurance company handle the majority of the work and continue doing your job.
Not all self employed liability insurance is the same. It generally falls into one of three categories. General liability insurance covers more general cases such as libel and slander. Small business liability insurance primarily protects against liability in disputes with clients, but it can also be used for other liabilities such as on the job property damage. Contractors liability insurance is specifically for people who do contract work and issues that may arise from performing it. To decide which type of insurance you should get, consider the type of work you do. Ideally, you would want coverage for every type of liability, but it's more practical if you can target the areas your business is most likely to have liability issues.
People frequently jump into self employment without taking the proper precautions. Many of them don't appreciate the amount of risk they put themselves and their business under by not having self employed liability insurance. Some don't think it's necessary, and others feel like they can't afford it. In the end, though, any business without liability insurance is taking a major risk. It's not uncommon for legal action against a small business to be expensive enough to put them out of business. Compared with this risk, the tax deductible cost of liability insurance premiums is a small price to pay.
by: Sal Trump