Liability insurance for the self-employed

As a self-employed business owner, a lot of things probably come naturally to you. Maybe you’re good with numbers, or you’re super organized. You might have an impeccable sense of style, or you can nail things down to the tiniest detail.

Even if you’re great at running your own show, you’re bound to have shortcomings. And one of those shortcomings is probably business insurance, which is why we’re here to help.

So, what is liability insurance?

Liability insurance is really just several different types of insurance policies that protect your business from loss based on your premises and operations, products, and completed operations, along with various types of property.

Some coverages are more important to have than others, depending on your type of business. (That’s why it’s good to have an insurance agent.)

Liability insurance is important if you’re self-employed

When things are going great, being self-employed is awesome. But if something goes wrong, it will land on you, and only you.

It will protect you from the many things you may be liable for, including lawsuits.

No one wants to spend money on insurance, especially when starting out. But both your business and personal finances could be at stake if something happens. You’ve worked hard to build your assets– it’s important to protect them.

Of small businesses rely on personal savings for their initial funds. Insurance helps you protect what you’ve been working for.

Potential self-employed liability insurance requirements

  • Your future landlord might require you to get a general liability policy before signing a lease.
  • A high-profile client might ask you to have professional liability insurance.
  • A general contractor or hiring party might ask you to get a workers’ comp policy for yourself.

There is no one-size-fits-all liability policy

We recommend chatting with one of our insurance experts, as they can help you get the exact coverage you need, and save you money at the same time. A lot of people think that it costs more to get great advice, but if you talk to a Pogo expert, it’s completely free. Not bad, huh?

General liability is a great place to start

It’s like a basic insurance coverage for all the random things that could go wrong when you interact with the public. Examples of general liability insurance coverage include:

  • Product liability
  • Slip and fall accidents
  • Property damage lawsuits
  • Customer injury lawsuits
  • Advertising injuries
  • Copyright infringement
  • Reputational harm

Whether it’s a client who slips and falls at your office, or one of your contractors who accidentally floods a client’s basement, general liability insurance will have your back when something happens. And let’s face it, something always does.

Other liability policies to consider:

  • Professional liability insurance (E&O): Covers you against loss due to negligent professional duty, wrongful acts, and advice or services that lead to another person’s loss or injury. This is something you need if you offer professional services or expertise for a living.
  • Business property insurance: Covers damage and loss to your business property due to storms, fires and other causes.
  • Business auto insurance: Covers your business vehicles and drivers for collision, liability, personal injury, property damage, and more.
Of small business owners rely on their personal auto policies. However, few personal insurance policies cover business-related claims.

How much does liability insurance cost for the self-employed?

The cost of business insurance can vary depending on the size of your business, where you work (like at home versus an office space), and what type of risks you face.

Many people can expect pay between $500 to $1,000 per year for a liability insurance policy, though the size of your policy limits (which is the maximum amount an insurance company will pay for a loss) can majorly impact the price. For example, if you have a coverage limit of $500,000, your policy will be cheaper compared with a policy with $2 million worth of coverage. The higher your coverage limits, the more expensive the policy will be.

Take a look at our self-employed insurance cost breakdown to learn more.

We can save you money

Our goal is to offer you the most cost-effective solution, without the headache of shopping around. That’s why work with over 30 insurance companies to get your the best coverage at the right price. Fill out a simple form about your business and we’ll help you out for free.*

*No really, our expert advice is free.