subject: Self-employed Liability Insurance - Why It's Important [print this page] Self-employed people often choose this type of employment because they like the flexibility it provides and they enjoy being their own boss. It's crucial to remember that even if you think of yourself as an individual contract worker, you are actually running your own business. Doing so can be rewarding and exciting, but it can also be risky. Part of the risk comes from the fact that any unhappy customer or client can turn into a lawsuit.
This can happen to any self employed person, no matter how dedicated and hardworking they are. The prudent business owner should to cut risk and protect their business with self-employed liability insurance.
There are many different types of coverage out there, but they all have a few common threads. If one of your clients or customers files a lawsuit against you, the proper liability insurance will protect you. The right policy can take care of expenses related to defending yourself. Depending on the specific type and amount of coverage you buy, self-employed liability insurance could cover investigation expenses involved in building your defense case. The policy could also cover attorney fees as well as paying a settlement or judgment if needed. Just knowing that you have this type of insurance behind you can improve your outlook.
Independent contract workers may choose to purchase a self-employed liability insurance policy in order to protect themselves from lawsuits arising from their work. General liability insurance covers claims such as slander and related issues. Professional liability insurance protects business owners or self-employed sole-proprietors from error claims. Malpractice insurance carried by doctors is an excellent example of this type of insurance. This coverage is also sometimes referred to as "errors and omissions." Doctors in the US are required to have this insurance in order to practice. However any business person who can be accused of negligence should also carry this type of coverage.
The amount of the premium you will pay is often based on the type of business you own, your total payroll and the types of coverage you choose. For instance, you may choose to add medical payments to your basic self-employed liability insurance package if you have an office where customers meet with you. If a client happens to slip or fall you will be glad you have this coverage. Someone with a lawn-care business may want to add property damage insurance, in case they hit a customer's car with the mower. An experienced insurance agent can help you determine the types of coverage you need for your line of work.
by: Sal Trump
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