Buy Self-Employed Business Insurance

Self-employed business insurance is a type of insurance coverage designed for self-employed individuals who run their own businesses. It provides financial protection for the business owner in the event of losses or accidents related to their business operations.

Some common types of self-employed business insurance include liability insurance, property insurance, professional indemnity insurance, and product liability insurance. These policies can help protect self-employed individuals from financial losses and legal liabilities, ensuring the longevity and stability of their businesses.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small self-employed businesses ranges from $27 to $49 per month based on industry, location, size, payroll, sales and experience.

For most small business owners, the business is their primary livelihood - their bread and butter, whether they are just starting, or planning on opening up more locations.

Self-employment insurance is a type of insurance plan that meets the coverage requirements of your particular business structure. The reason that it is important is that it protects your business from claims of liability from customers, clients, and others.

Many self-employed people do not feel a need to be out the cost of insurance coverage for themselves and their businesses. The need for insurance for the self-employed is usually profession-specific, but all businesses should consider some type of coverage.

Without this type of insurance, the business and the personal finances of the self-employed are at risk in a litigious society.

Claims of liability range from damage you cause to someone's property while you are on the job to claims against you from someone who becomes injured on your property.

Providing substandard work may leave you in breach of a legal contract, opening you up to claims, or your business may be burglarized, causing you a loss of assets. All of these situations are reasons for businesses to buy effective policies that guard against known and potential perils.

As a self-employed business owner, there are several types of insurance you may need to consider:

• Liability insurance: This protects you from financial loss in case a client or customer claims you are responsible for injury or property damage.
• Health insurance: Self-employed individuals can purchase individual health insurance policies.
• Disability insurance: This insurance covers lost income if you become disabled and unable to work.
• Property insurance: If you own a business location, you need to have property insurance to protect your building and contents.
• Workers comp insurance: If you have employees, you may be required by law to provide workers' compensation insurance.
• Life insurance: This insurance can provide financial support to your family in case of your death.
• Business interruption insurance: This insurance covers losses due to unexpected events like natural disasters that prevent you from conducting business.
• Commercial Automobile insurance: If you use a vehicle for business purposes, you need to have commercial auto insurance.

It's important to evaluate your specific business needs and consult with an insurance professional to determine the coverage that's right for you.

Self-employed businesses, like any business, face a number of potential legal risks. Here are a few reasons why such businesses might be sued, along with examples of how the right insurance coverage could help mitigate those risks:

1. Professional Negligence: A self-employed business may be sued for professional negligence if a client or customer alleges that the business failed to provide a service to the standard expected, which resulted in damage or loss. For example, if a self-employed architect designs a building that later collapses due to design flaws, they may face a negligence lawsuit.

Insurance Solution: Professional liability insurance, also known as errors and omissions (E&O) insurance, can help in such situations. This insurance helps cover the costs of legal defense and any damages awarded, up to the policy limit. It can also cover settlements, which can often be less costly than going to court.

2. Breach of Contract: A self-employed business could be sued if it fails to deliver the services or goods as agreed upon in a contract, leading to financial loss for the client.

Insurance Solution: In certain cases, general liability insurance can cover legal expenses related to contract disputes. However, the best prevention method for contract lawsuits is to have solid contracts and to meet all contractual obligations. In complex agreements, it's often worth investing in legal advice.

3. Personal Injury: If a client, customer, or third party is injured on the premises of a self-employed business, the business could be sued for medical costs, lost wages, and other damages related to the injury.

Insurance Solution: General liability insurance can help here as well. This type of insurance typically covers bodily injury claims, paying for medical expenses, legal fees, and any damages awarded in a lawsuit.

4. Product Liability: If a self-employed business produces a product that causes harm or injury, the business could be sued for damages. For example, if a self-employed soap maker sells a product that causes an allergic reaction, they could face a lawsuit.

Insurance Solution: Product liability insurance can help cover the costs of a lawsuit stemming from damage caused by a business's products. This includes legal defense costs, settlements, and any damages awarded by the court.

5. Intellectual Property Infringement: If a self-employed business is accused of infringing upon someone else's copyright, patent, or trademark, they could be sued for damages.

Insurance Solution: Intellectual property insurance can provide coverage for legal fees and any potential damages or settlements in an infringement lawsuit. It's worth noting that general liability insurance often excludes intellectual property disputes, so a separate policy may be necessary.

Remember, insurance policies vary widely and it's important to understand what is and isn't covered by each policy. Always consult with an insurance professional to ensure your business has the appropriate coverage for its specific risks.