All businesses need to have an insurance plan that protects them from unexpected legal issues. It does not matter whether they are a large business or you are simply self employed. Self employed liability insurance can protect you from losing your business and much more.

What is Self Employed Liability Insurance?

Being self employed is becoming more and more popular. There are many types of jobs that fall under this. Essentially, you are an independent contractor. It may surprise you, but even actors and musicians are self employed. This is a pretty big area of work options, which leads to the need of having this type of insurance. If you are a consultant of some sort, you are giving advice to your clients. This means that you are taking a risk. If they follow through on the advice and it falls through, they could sue you. If you do not have protection from this, you could lose everything you have worked so hard for. There are other areas of self employment that include physical labor. Physical labor could be risky and if something happens while someone is working, they could sue for medical expenses and a wage replacement.

If someone loses income, if someone gets sick or injured, or they have suffered mentally due to your work failing; They have grounds to file a lawsuit. This makes self employed liability insurance all the more important. It is best to have protection from frivolous suits, but it is way imperative to have protection against the ones that may hold water.

What Does Self Employed Liability Insurance Cover?

This type of insurance can cover any lawsuit that comes for your business. This is often times due to negligence on your part. It will help with legal fees, potential medical fees, and even loss of wages due to an injury or illness. If someone is suing you, this coverage will make sure that it does not come out of your business earnings or your own pockets.

Does my Business Need It?

Your business should most definitely invest in this type of insurance. Whether you work in construction, run a consultant firm, or sell children's toys; There could be a lawsuit just waiting to happen. Unfortunately, the world we live in is incredibly litigious. This is why covering yourself is a worthy investment either way.

Think about how often you have heard about people suing major companies. The complains vary, but if there has already been precedent set, the chances of them winning the case are greatly increased. People tend to think that because they are running a small business with clients they may work with often that their clients will not turn on them. That is simply not the case. There are a lot of situations where things go wrong, even if it is not due to your own personal recklessness. This makes running a business far more complicated than it has to be.

Understanding the Need

Taking the time to really understand all of the risks of your business will help you to figure out what type of coverage you truly need. If you have people working under you, you are going to need to consider them and their safety. If something happens to them while they are working for you, they can sue you as well. While it is stressful, it is nothing to be truly angry about. The person that sues you may be seriously injured with no health insurance or their coverage is mediocre. They may not be able to work for a while. Either way, they are going to need the help that comes from this insurance. It will keep both parties safe from losing everything.

Is it Worth It?

In one word, yes. Self employed liability insurance is incredibly worth it. It can be affordable, as well. You can get coverage based on your needs by talking to an insurance agent. For every business, there are different needs. By discussing this purchase with an agent, they will be able to help you pick the perfect plan that doesn't over cover or lack coverage where you most need it. A law suit could make or break your business and the life that you are used to living. Protect yourself, your investments, and your family by acquiring a protection plan.


In conclusion, it is important to make sure that your business is protected. While many self employed people do not consider the possibilities of lawsuits--there are many. Talk to an agent about what risks you may be taking without self employed liability insurance.