Self-employment in the USA is rising every day. Hence the insurance companies come up with an insurance that can protect these people financially. They called it the self-employment insurance. Now we dig deep on this topic.
What is self-employment insurance?
Self-employment means a person who works for himself. There is no direct employer. Self-employment insurance is for these kinds of people. This insurance covers public, professional and employees liability. If you have more than one employee then you must have employees liability insurance.
What are these liabilities?
Public liability covers your business from any kinds damage claims that can be caused by your business, service or the product. Public liability insurance is to protect your business interest and the Tradesman savers public liability insurance is the best for this.
Professional liabilities insurance is currently known as errors and omissions in the US. Previously it was known as professional indemnity insurance. It covers the service providing individual and the companies from damage or negligence claims by the clients.
This coverage gives you the protection of these things, failure to perform any part of the job on time, financial loss of the client if you are a financial adviser and error or omission in the service or product provided by you or the company. This is a big matter in case of a service provider. General liability insurance may not cover all these.
Every employer is obliged to have employee liability insurance. This gives protection from any kind of damage that is caused by your employees. It can be property damage or illness.
Is it illegal to not have liability insurance?
In some business, the company or the owner must have employee liability insurance. But you have to remember that this is applicable only if you have one or more employee. If you do not have any employee then you do not need this insurance.
If you feel that some of the coverage is not appropriate for your business you can cut them off from the insurance. But overall this is not mandatory. However, if you want to protect your business financially you must have public and professional liability insurance. It also protects the interest of your clients as well as your business.
But in business, you will find that certain clients are demanding for certain insurance coverage. You can add them to public liability insurance.
The things liability insurance will not cover
Well, let you guys inform you about those that the liability insurance will not cover. There some unclear area like the employee liability insurance will not cover injuries of the employee. It means if an employee is injured on the job, the insurance will not cover it.
Same goes for employees disputes. This insurance will not cover the disputes between employer and employee. This will only cover the fault in the service that is made by your employee.
Now comes the big four. Intentional wrongdoing, illegal acts, false advertising and property damage all these will not be covered by this insurance. First, three of these are criminal acts and not good for professional ethics. Any professional liability insurance will not cover these. In the matter of property damage, you need property insurance to cover you up.
Hope this clears all the confusion about liability insurance. If you still need more information please ask me in the comments.