Self employment allows business owners to attain a certain level of freedom and autonomy; yet, it requires a certain level of responsibility, as well. Self-employed people may operate their businesses from home, store front or a vehicle. Regardless of the origin of operation, self-employed people are liable for any mistakes they make on the job, as well as, for any accidents that may occur at the site where the product is sold or job is performed.
Why Should the Self-Employed Obtain Public Liability Insurance?
Most self-employed people cannot handle the expense of a major lawsuit. A major lawsuit may force a business owner to spend all of their revenue to cover the lawsuit as opposed to allocating the funds to operating expenses or others. This type of insurance protects the self employed from losing their livelihood as a result of a lawsuit.
Small businesses, in the first couple of years of business, may operate under a deficit or with a small profit margin. Because of this common occurrence for the self-employed, Public Liability Insurance is recommended. Public Liability Insurance will cover the cost of legal fees, research, expert opinions, pain and suffering and any related medical expenses.
Loss of a business will, not only, affect the self-employed person’s business credit and life, but may also affect their personal finances. This could lead to loss of personal items. Personal and business loss may be avoided with Public Liability Insurance for the self-employed.
What Should the Self Employed Consider before Obtaining Insurance?
The self-employed should first separate the business assets from personal assets. Once this is determined, Public Liability Insurance will cover the aspect of the business related to business assets. Obtaining the insurance will protect the business from bankruptcy in the event of a lawsuit. Additionally, the insurance will protect the self-employed person’s livelihood.
Business assets may include computers, laptops, company vehicles or anything that may cause an accident in the workplace. For instance, a plumber may cover his business by insuring the vehicle and also any occurrences that may occur while on site at the client’s location. An accidental burst pipe may cause water damage to floors, carpets or computer equipment. Each of these items will be covered under Public Liability Insurance if the damage occurred as a result of the self-employed employee.
Self employed people with staff may also have a need to reduce the potential for error on the job. Preventative measures may include random drug tests to ensure that the staff is performing at their best on the job. This will minimize errors that may result in lawsuits. Safe business practices will minimize the need to file claims on the insurance. This will result in higher bills.
If the company car or company truck causes damage or an accident while on company business, Public Liability Insurance will also cover this loss. Safe driving techniques and other precautions will prevent the need to file a complaint.
How to Obtain Public Liability Insurance
Inexpensive Public Liability Insurance providers are available to help the self-employed avoid costly lawsuits. The insurance may seem expensive at first glance. However, the self-employed quickly realizes the benefits if their business experiences a lawsuit with a settlement over $500,000. A reputable insurance broker can help the self-employed find insurance that will meet the needs of the business.
Lawsuit settlements may easily exceed $1 million if there are any medical expenses involved. Additionally, pain and suffering and loss of wages may also be paid through this type of insurance.
What to Expect from a Public Liability Insurer
Companies should research the company to determine the insurer’s success rate of winning cases, how fast they handle claims, what the premiums are applied to within the business and what types of claims of covered. This will ensure that the self-employed person has no surprises if a successful lawsuit is placed against the company. The agents should be informed so that the business owners can get the best deal.
Expert agents know the policies and are able to select the best options for each individual company. Self employed people simply need to interact to find the best coverage and premium prices given the employer’s business needs. Public Liability Insurance is almost a necessity for any self employed person.