Self-employment can be a benefit for some and a struggle for others. The success of a self-employed person depends on the goals they have set for their business, how they plan to meet those goals, and how much effort they put into the operations of the business. The first step in acquiring self employed liability insurance is to meet with an insurance agent. The agent will walk through your company, take notes, and assess what areas of your business could be liable for losses. As the business owner, you should purchase liability insurance protection for yourself and your family. This insures you in the event that a client comes to your home for a meeting and slips and falls.
A self employed liability insurance policy should cover all legal costs, provide 24 hour protection, medical fee coverage and property damage coverage. The premium for this type of insurance policy will be based on the type of business you own. If the business is in the contracting or services industries then the premium for the insurance policy will be based on the total payroll.The main reason a person should purchase self employed liability insurance is to protect themselves and their business from any lawsuits that could arise from visitors to the business, employees, or clients. Yes, self-employed persons can have employees, especially if their business is so active that the owner needs help. Almost all insurance companies that handle businesses and corporations cover this type of insurance policy these days. A policy that covers liability insurance for self-employed persons will cost a couple hundred dollars per month depending on the size of the business, how many people are working with the owner, and whether or not the business is accessed by the public.
Self employed liability insurance is required in some states across the country in order for the business to operate legally. Not all self-employed persons will apply for a business license, an LLC, or a Corporation status if they work out of their own home. This means that the self-employed person might be able to get away with not having this type of insurance policy. For those self-employed persons who are required to file or apply for a license with the state in which they live, they might have to have liability insurance before their license is approved and the business can begin operating.