As a private contractor, if something goes wrong, the person who's running the business is personally liable. One way to avoid that is to use a limited liability corporation (LLC).
Video: How to Protect Your Assets
As a business owner, one of your primary responsibilities is protecting your business, yourself, your employees, and your family against financial disaster by ensuring you have a business liability insurance policy.
Essentially, there are three types of liability insurance:
- General Liability Insurance, which will cover any legal suit that is related to the business products or services as well as your business premises
- Professional Liability Insurance, which covers professional companies – lawyers, advertising companies, doctors, etc.
- Automotive Liability Insurance, which will cover individuals who drive company-owned vehicles. This type of policy insures for damages to the vehicle from an accident, injuries to the company’s driver as well as others who were injured during their involvement in the accident.
When you purchase liability insurance for your small business, it is imperative that you educate yourself about the available choices in order to make the best, most cost-efficient decision possible.
Here are some important things to keep in mind:
- Look online to familiarize yourself with liability insurance; make notes of any guidelines that are applicable to you and your business.
- If you choose to use an agent to purchase your insurance, be sure to find one who will take a look at your specific needs so he or she will be able to make the best recommendations possible.
- Look to your Chamber of Commerce or trade or business association for bargains on insurance – often you will be able to get group rates saving you quite a bit of money.
- Be sure you compare coverages – make a list of what you need to ensure the prices you are quoted will be accurate.
- Looking for insurance online and off is a great way to be sure you are getting the best pricing available. Often, online directories will also provide comparison tools that can help you look at the various quotes and policies offered by different insurers.
- Take a look at buying a Business Owner’s Policy – or BOP – that can provide insurance coverage in many areas. For this type of policy, you will need a specialist to be sure all your needs are met by adding necessary riders to your policy.
- Be sure you are always up to date with any new developments in insurance law in your state. This could make working out a claim or renewing a policy much easier down the line.
Doing a background check and looking into an insurer’s reputation with the better business bureau is always a good idea once you’ve narrowed your choices down to just a few.
November 20th, 2009 at 3:05 pm
As an independent contractor, I found this video EXTREMELY insightful and informative. Thanks!
December 29th, 2009 at 9:07 pm
Brilliant. I wish more bloggers would take the time to come up with quality posts like this one.
January 22nd, 2010 at 9:05 pm
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January 24th, 2010 at 11:35 pm
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February 1st, 2010 at 9:22 am
Thanks for the great post. I always like to save life insurance or insurance related posts like this one.
February 9th, 2010 at 2:19 pm
Maybe an HSA will help. To be eligible for a Health Savings Account, an employee must be covered by a qualified High Deductible Health Plan (HDHP), must not be covered by other health insurance, must not be enrolled in Medicare, and must not be claimed as a dependent on someone else’s tax return.
February 12th, 2010 at 2:54 pm
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March 5th, 2010 at 3:07 pm
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March 5th, 2010 at 9:58 pm
The midlife crisis is something people joke about but it can be distressing for those going through it.
March 6th, 2010 at 1:40 pm
Good read … headline catchy … good points, some of which I have learned along the way as well (humility, grace, layoff the controversial stuff). Will share with my colleagues at work as we begin blogging from a corporate perspective. Thanks!
March 8th, 2010 at 2:26 pm
Glad I found this site!-Insurance Tips
March 10th, 2010 at 6:27 am
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March 15th, 2010 at 2:27 am
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March 15th, 2010 at 12:23 pm
Awesome! Thanks so much! Good luck to you all!!
Cheers,
Stacey
April 8th, 2010 at 7:57 am
Very informative post. Thanks for taking the time to share your view with us.