Certified, Licensed & Insured




Posted on December 8, 2011 by bizweb

I’m sure you’ve seen plenty of business advertising that includes the term “certified, licensed and insured” along with the service being offered. The reason professionals include that statement with their advertising is to give potential clients the peace of mind. Clients want to know they’ll be hiring only qualified professionals who’ll get the job done right and are covered should anything go wrong.

Certified, licensed and insured means just that. The professional has all the necessary certification in their field, they have all the licenses required by federal and state authorities, and they have commercial liability insurance coverage that protects both themselves, their workers and you, the customer.

Here’s a little more information about each topic, that every professional as well as client, needs to know.

Certified

Nearly every profession in the United States as well as other countries, comes with some level of training and certification requirements. I’m sure you’ve heard of certified electricians, board certified mental health professionals, certified public accountants and other officially certified professionals.

This certification comes from a variety of sources including state and federal agencies, officially recognized and licensed training schools, technical schools and other places of higher education.

Official certification in any profession proves that the professional has gone through the necessary education and training required to become proficient in their craft. Clients hire certified professionals because it gives them confidence that the job will be done correctly.

Licensed

Just like certification, licensing is mandated for most professions by federal and state authorities. Professionals get a license to operate a business by showing proper training and certification credentials. In many places the professional must also take a test and pay an annual fee in order to obtain a license to operate their business in their state. Licensing requirements are in place to protect the consumer from unqualified or unskilled trades people. Nearly all businesses require some form of license to operate in every state in the U.S., from California to New Jersey, and from Michigan to Texas.

Insured

When a business or professional is insured it means that they have commercial insurance. Just like certification and licensing, most professionals are required by law to have some level of business insurance, especially liability insurance.

If you are a potential client you need to ask what type of insurance the contractor or professional has before you sign a contract to do business with them. Most will show you a certificate of insurance that proves they have coverage up to the limits of potential liability.

As a professional or contractor, it is your duty to make sure you have all the different commercial insurance policies required both by law in your area, and by your particular financial situation and risk situation. The best way to determine that is to check with local licensing agencies to see what you need for minimum coverage, then check with a licensed insurance broker or agent to get recommended policy types and limits above those minimum requirements.

The different types of commercial policies carried by companies and professionals include general liability for property damage and injuries, professional liability for mistakes, umbrella policies for amounts over policy limits, workers compensation for employees who get hurt on the job, as well as a handful of other policies specific to certain industries and professionals.

Remember, “certified, licensed and insured” means not only the ability to land more jobs from potential clients, it means you’re doing business above board and with all the proper credentials and coverage needed in today’s business world.

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EPLI: Employment Practices Liability Insurance



Posted on December 1, 2011 by bizweb

Employment Practices Liability Insurance is a type of commercial insurance policy that protects businesses from situations that not covered by GLI (General Liability Insurance).

In a nutshell, EPLI offers a way for employers to control costs, by protecting them from potentially expensive settlements and judgements from certain claims brought against their company.

This post will cover some of the claims that EPLI covers (and doesn’t cover) as well as the cost of EPLI, so that you can consider whether or not you need this type of policy for your business.

The first type of claim that EPLI covers is Discrimination.

Federal, state and local discrimination laws prohibit discrimination based on things such as gender, race, marital status, religion, sexual preference, disability, pregnancy and more. Remember, these situation can occur within departments and with individuals who simply do not get along. They happen even in companies with all the proper human resources and sensitivity training, and they happen at companies with excellent department managers and professional employees. The more employees a company has, the higher the chances of these claims happening. That’s precisely why you need to consider coverage for situations like these.

The next type of claim that EPLI covers is Sexual Harassment:

An EPLI policy can cover sexual harassment claims as well. Sadly, sexual harassment claims against co-workers and supervisors still occur frequently in many industries, even it today’s professional environment. In a perfect world, this stuff would not happen, unfortunately, the reality is that sexual harassment still goes on despite all the successful lawsuits over the recent years.

One more type of claim that EPLI covers is Wrongful Termination.

Anytime you fire or layoff an employee you are open to a wrongful termination lawsuit. And it can happen even when you don’t fire someone. Some employees who actually quit on their own will bring a lawsuit against your company claiming they could not tolerate the work environment. You can also get coverage for this situation as well.

There are many other situations that EPLI can cover in addition to these three. Before you purchase this type of policy, ask your insurance broker or agent any or all of the following will be covered as well…

Libel, slander, and defamation
Assault and battery
Promotion or hiring decisions
Invasion of privacy
Employee benefits mismanagement claims

Does Your Business Need To Buy EPLI?

That all depends on many factors including your risks and the size of your business. Obviously, if you are an independent contractor with no employees you have little exposure to these types of claims. However let’s say you are a large federal contractor with hundreds of employees. You’re required by law to have many different policies in place before you can even bid on a contract. One of these policies will likely be EPLI coverage. Every business is different, so you need to contact a reputable business insurance broker or agent to discuss what specific policies you need for your company.

How Much Does EPLI Coverage Cost?

Your cost will depend on many factors including the number of employees you have as well as other company specifics like company policies and the risks associated with your business. Naturally, the amount of coverage you require will have a direct effect on the cost of your premiums. A $1 Million policy will cost less than a $10 Million policy. You can also keep costs down by choosing a higher deductible, just be sure not to select a deductible amount your company cannot afford to pay out. As with any liability type of insurance, there are exclusions with EPLI, for things such as criminal activity and more. Be sure to ask what specific exclusions your policy has before accepting any policy.

Note: If your company already has a Directors and Officers insurance policy (D&O) you may have some employment practices liability insurance coverage already. To avoid overlap in insurance coverage (meaning you’re paying twice for the same coverage), you should review any D&O policy you have, before buying EPLI coverage. One important thing to remember though, is that D&O is usually limited to directors and officers and can contain certain exclusions that a standalone EPLI policy will not have.

Where to Buy EPLI Insurance

EPLI quotes are available both online and offline via most any commercial insurance carrier. Start with your current General Liability Insurance provider as you may be able to add this onto your business insurance policy and save money versus buying it separately. Then consider getting a few quotes online so you can be sure your premiums are in line with what other insurers are charging for this type of coverage. As a rule, it is a good idea to review your policies annually, not only to make sure you have all the coverage your business needs, but also to keep costs under control.

Posted in Business Insurance Quotes, Commercial Insurance, Contractors Liability Insurance, Liability Insurance, Small Business Insurance | Tagged , , , , , , , , , | Leave a comment

Does An LLC Need Liability Insurance?



Posted on November 22, 2011 by bizweb

An LLC is a Limited Liability Company that is designed to limit the liability of the owner. Many people form LLC’s for tax reasons, but most do it to limit their liability. While these business entities are generally effective at doing just that – they are not always able to give the level of protection needed.

As with most things here in the U.S. there are many exceptions to the rule. There are certain instances where having an LLC will NOT protect you from liability, these two instances specifically…

1. You or your company has acted in a neglectful or illegal manner, whether you’re ignorant of the law or not.

2. You’ve co-mingled company funds with personal funds meaning you have not been treating your LLC as a separate entity.

If you think you can avoid both of those instances you still may want to pay the nominal cost of business liability insurance. That’s because your entire business can be at risk from one single lawsuit, no matter how frivolous you may consider the suit. Also remember that if you get sued you will lose a lot of time defending yourself and your business. This can be avoided if you buy commercial liability insurance.

When you are covered by the right business insurance policy or policies, your insurance company will pay for your legal defense and handle everything behind the scenes for you. This can save you from spending long hours on the case in court and in meetings. It also saves you from having to pay the high hourly rates that many lawyers charge. Even if it simply saves you from having to worry about a lawsuit then it is worth buying liability coverage.

If you think that your LLC has even a small risk of liability, you may want to consider getting a commercial liability policy anyway. A good policy to shop for initially, is a general liability policy, which pays for injuries and for property damage. It also covers the cost of your legal defense.

If your LLC offers professional services or even advice to clients and customers, you’re likely set up as a PLLC (Professional Limited Liability Company) depending on the state your business resides. If this is the case then you may also want to take a close look at professional liability coverage. This will provide liability protection when a client claims damages or loss of income as a result of your advice or mistakes. A few examples of professionals who can benefit from this type of policy include chiropractors, lawyers, landscapers, and anyone offering services for a fee.

LLC’s are a solid business entity but the added peace of mind that a business liability policy offers can be worth it for most small businesses. There are enough things to worry about when trying to start and run your own business, from paperwork to permits, licenses and taxes. The last thing you need to worry about is liability. Find a cheap policy from a reliable insurer and you can focus on growing your business instead of protecting it.

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A Business Owners Policy Can Save You Money



Posted on November 17, 2011 by bizweb

When you’re a business owner you have to be able to look at the big picture, especially when it comes to risk, liability and insurance. If you were ever an employee for another company, you may remember that work was all about getting your hours in then going home. Not as a business owner.

When you’re in business you need to worry about everything from sales numbers to support issues to legal issues. That means you have to be prepared for anything and know what you are going to do if something goes wrong. But business liability insurance can be expensive! So you need to save money on the cost of commercial insurance whenever possible. That’s where a Business Owners Policy comes in.

A business owners policy enables you to get a discount on a bundle of policies you need for your business. It’s like a basket of coverage that’s custom tailored to your specific insurance needs.

Fire, property damage, flooding, anything that could hurt your business or your finances, is a very real danger that you need to concern yourself with. Even an independent contractor or small to medium sized business owner needs to buy insurance to cover all of the different things that could go wrong. Depending on your particular risks, you may need many types of coverage. A savvy business owner with multiple insurance needs might want to take a close look at a Business Owner’s Policy, or a BOP as it’s sometimes called.

A Business Owners Policy is a collection of all the insurance that you need for your business. The package is put together with your specific needs in mind and typically can contain things like business interruption insurance, property insurance, commercial vehicle coverage, general liability insurance, crime insurance and flood insurance.

Additional policies like earthquake, hurricane, tornado and other forms of insurance might be added depending on the physical location of the business being insured. This can be a real advantage for you as a business owner because a BOP offers cheaper insurance premiums in many cases. Since it’s basically a packaged insurance deal, you usually pay smaller monthly premiums than you otherwise would when buying each policy separately, and trying to customize your own coverage.

Of course, just because you decide to go with a Business Owners Policy doesn’t mean that you shouldn’t negotiate pricing with your existing insurance company or better yet, shop around with multiple insurers to find the best deal for your business. And remember, when comparing pricing from multiple providers that are offering BOP’s, you need to not only compare the rates, you need to compare the coverage as well. In the process of comparing quotes, keep in mind which one gives you the best coverage as well as offers the best fit for your budget and your business.

If the prices you are quoted are still too high, talk to the representative, agent or broker to see if there is a way you can customize your particular BOP further. If saving money is your number one priority, ask for other options such as higher deductibles that are within your means to pay. Many of the better rated insurance companies are sometimes willing to work with you in order to keep you as a satisfied client.

Getting a solid Business Owners Policy to cover all your risks is a good investment to make in your business. It gives you the confidence to face every day knowing that no matter what happens, you have a shield ready to defend yourself against the world and everything it might try to do to you and your business.

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Hire Only Licensed And Insured Contractors / Sub-Contractors And Avoid Liability Issues



Posted on November 10, 2011 by bizweb

If you are a general contractor or even a home owner considering hiring a contractor or sub-contractor, you need to read this. Anyone who hires an unlicensed and/or uninsured contractor or subcontractor, puts themselves at risk. It’s called liability risk and it can have a profound affect on your current and future financial situation.

In the current economic climate, there are thousands of unemployed contractors looking for work. These contractors are in a wide variety of fields. In the construction field alone you’ll find dozens of workers in need of work, including carpenters, drywall installers, roofers, deck installers, painters concrete floaters, and general laborers. What you may not realize is that many of these people are not licensed and insured or bonded properly.

In the event of injury to an unlicensed or uninsured contractor or sub-contractor, the hiring individual’s risks fall into three main categories:

1. A lawsuit by the contractor or sub-contractor
2. Payment of their medical bills
3. Insurance premium increase to your policy, and even possible insurance policy cancellation

In the state of Florida for example, hiring an unlicensed contractor is a violation of Florida Statute 455.228 and punishable with a fine of up to $5,000.

Even if the unlicensed or uninsured contractors’ work is a minor job, the individual’s liability can be staggering.

How then can a person know if a contractor is licensed and insured, and what steps can they take to avoid the economic and legal responsibility risks?

Here are a few actions that can improve the chances of hiring the right contractor:

Check and Verify the Contractor’s Insurance Policies

The contractor’s workers compensation insurance protects an individual if an injury occurs to any contractor’s employees while working on a project. Some states require this type of policy by law.

In addition, all states require contractors have some form of general liability insurance which gives protection to property damaged by the uninsured contractor. Always request the contractor’s insurance agents name, contact the agent, and have them send you a copy of the contractor’s valid liability and workers compensation insurance certificates.

Check and Verify the Contractor’s License

Most states and municipalities have a contractor-licensing database, and this database is available on the Internet. Prior to hiring a contractor, a person should access these databases, become familiar with licensing requirements, and verify the contractor’s credentials. It’s also a good idea to check the contractor’s business credentials and legitimacy, and verify any outstanding unsettled complaints made against the contractor with the Better Business Bureau.

Remember, if you are hiring a contractor or sub-contractor you have the responsibility of checking their license and insurance information before you put them on the job. It may take an hour of your time or cost you a few dollars to have someone else do this for you, but it is money well spent. Using only licensed and insured contractors can help you avoid potentially expensive liability issues.

Posted in Contractors Liability Insurance, Liability Insurance | Tagged , , , , , , | 2 Comments

Cyber Liability Insurance



Posted on October 29, 2011 by bizweb

What is Cyber Liability Insurance and how does it protect online businesses?

There are many types of insurance available for both people and businesses. The various types of business insurance protect businesses from property damage, accidents and other liabilities. Most businesses need some form of coverage. But what about businesses online?

One of the newest and most innovative types of commercial insurance called is cyber liability insurance. The cyber liability insurance is a type of insurance that deals with the Internet and e-commerce. With cyber liability insurance, things such as websites, blogs, networks and information are protected from potential problems. This type of insurance provides protection from hazardous exposure via Internet including things such as viruses and hackers. It also provides protections from copyright infringement liability.

For any business with an online presence, getting cyber liability insurance is an important consideration. Since many businesses have a website or blog, they can be held legally liable for everything they publish. Due to this fact, the exposure can cause some problems and therefore it is necessary to be protected from any negative consequences. With legislation that implements liabilities, websites need to be careful about the content they publish as well as providing security and privacy at all times. The use of cyber liability insurance helps companies and other entities make sure they are covered for any incidents or lawsuits that could arise.

There are numerous reasons why website owners should have cyber liability insurance. Most traditional business insurance products only protect things such as property, inventory and other general liabilities. When a business has operations that are online they will need another form of insurance that helps them deal with the potential problems that can occur on the Internet.

As stated earlier, websites need to be compliant with new rules and regulations constantly being adapted online, and they also need to make sure that they don’t copy someone else’s content. As a result they will need a form or protection so they won’t be as likely to suffer negative consequences. A cyber liability insurance can offer the coverage necessary for small businesses to operate safely on the web.

What sort of incidents do small businesses need to be concerned with? Well, one example would be the case where someone were to furnish personal information on an e-commerce site and the information gets stolen. Cyber liability insurance will protect the business if they get sued or receive negative sanctions from authorities such as fines. The cyber liability insurance can also monetarily compensate the party that received the damage in unfortunate circumstances such as this.

The Internet has become one of the main destinations for business now and with this migration to the web there are certain protections necessary for small businesses. This insurance is an example of a new type of policy that helps businesses keep themselves protected from lawsuits, fines and also maintain security for them and their customers.

If you’re wondering whether you need this type of policy, you may want to ask an insurance broker or agent. Chances are, if you’re operating a business with an online presence, it may be a good idea to at least get a few quotes for cyber liability insurance. You can get quotes online, directly from insurers who offer this type of coverage. Compare rates of multiple carriers so that you can be sure you are paying the lowest price possible for the best coverage.

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What Liability Insurance Does A Cleaning Business Need?



Posted on October 14, 2011 by bizweb

A friend of mine was thinking of starting a cleaning business and she asked me what types of liability insurance she should consider. Here’s the advice I gave her…

Since she was starting out by herself, she would likely be considered an independent contractor. Contractors need insurance just like any other business that deals with clients and customers, and a janitorial or even a maid type cleaning service needs commercial liability insurance. Determining what level of liability insurance coverage a cleaning business requires varies from state to state, but in general there are a few commonly faced issues.

Considering all the risks faced by a janitorial company helps decide the level of liability coverage needed. A cleaning business needs to protect themselves from damaging a client’s property, damaging equipment and vehicles, personal injury, and even from crime. In addition, a janitorial company may consider insuring themselves from other problems such as damage caused by backed up drains and sewers, lost or damaged keys, and damage to business records. 

If the business plans to employ others eventually, then more coverage may be needed. It’s easy to imagine a new employee being overzealous with a floor buffer and damaging an expensive wooden floor, or a dishonest employee pocketing something small but expensive, such as a cell phone or necklace from a client’s office. Without liability insurance to cover damaged property, employee theft, and equipment repair, a janitorial business could go find themselves on the wrong end of an expensive lawsuit.

To prevent costly out-of-pocket expenses, it is important that janitorial service businesses have liability insurance coverage that meets their needs. The best place to start is usually with a General Liability Insurance policy. In addition to general liability insurance, an umbrella policy may be a good idea for expensive claims that exceed a GLI policy limits.

Another policy you may need to purchase is Worker’s Compensation Insurance, that is if you plan to hire employees and your business will offer it’s services is a state that requires workers comp or some form of it.

The best thing to do is contact an insurance company that offers cleaning or janitorial business insurance packages and see what the agent recommends. Many insurers now offer deals that are specific to certain industries, and janitorial services is one of them. You may also want to ask them about getting bonded, which can help you get more clients. In fact, many larger business only let bonded cleaning companies bid on their available contracts, so adding a surety bond into your insurance portfolio is a good idea if you want to grow your business.

Which leads me to all the positive side effects of getting all the right coverage…

Most potential customers look to hire only cleaning companies with adequate liability coverage. They want to know, should damage or theft occur, that their property is protected. Customers also want to avoid costly lawsuits should an employee of a janitorial service get injured on their property. Therefore, a business with proper liability coverage is much more attractive to potential customers than an under-insured on non-insured company. Sharing with potential clients, the amount of liability coverage your janitorial business has, may give you an edge over other companies that lack proper coverage or simply don’t advertise it effectively. 

While it may seem like a hassle and and added expense to buy insurance for a business that seems as simple as cleaning, it’s worth the time to shop around online and compare rates. You may also want to contact you existing agent and see if they offer business insurance and have them put together a quote for you as well. The time it takes is well worth it to protect yourself and your new business.

Posted in Commercial Insurance, Contractors Liability Insurance, Liability Insurance, Small Business Insurance | Tagged , , | 2 Comments

Liability Insurance Policies For Real Estate Professionals



Posted on October 5, 2011 by bizweb

People in the service field, such as a real estate agent, give advice and recommend things to clients on a daily basis. Because of the nature of dealing with the public and their propensity to sue, real estate agents need to purchase professional liability insurance.

Professional liability insurance in the case of real estate agents, is also known as errors & omissions insurance, or E&O Insurance for short. This insurance is basically malpractice insurance, similar to the insurance a doctor would need. Though real estate agents are not doctors, they do give advice and recommend products; in this case, it is houses and property.

Many people in our society rush to litigate. No matter how careful one might try to be, there are always potential situations which can lead to lawsuits. In the real estate business, there is always a risk of making errors or omissions unintentionally.

If a client claims that he or she has suffered hardship because of a real estate agent’s misinformation or lack of information, the client may have a right to sue. By purchasing a professional liability policy, real estate agents can protect themselves from situations like this. These policies usually start in denominations of $1 million and up.

Just like car insurance, the insured is only covered while their policy is in force. Any lapse that might occur in payment will also mean a lapse in coverage. Agents also have to pay close attention to the clauses and exceptions in this type of policy. Some things that are usually not covered in a policy are:

*Dishonest or criminal acts by the agent
*Polluted property claims
*Bodily harm or death caused by agent to another person
*Personal property damage caused by the agent

It is not uncommon for these policies to have two different deductibles, and the deductibles are sometimes quite high with E&O policies. The first of the deductibles is usually the amount the agent must pay out of pocket, before the policy starts to pay. The second deductible is for payment if the agent loses the case and is found to be at fault. This deductible is the amount that must be paid when there is a claim against the insurance. For example, if the claim proves the agent is in error and the client is awarded $50,000, the deductible would be deducted from that amount. The deductible amount is predetermined when the policy is put into force, so make sure you know exactly what the deductibles are in your policy.

To be successful in the real estate business, it is essential to have all the proper liability insurance coverage. So make sure in addition to GLI (General Liability Insurance) which most businesses know about and purchase, that you also have professional liability insurance. Not having insurance can be a costly mistake in the real estate profession and could realistically cost a whole career and even your very livelihood.

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D&O Insurance for Directors and Officers



Posted on September 27, 2011 by bizweb

Directors and officers of businesses are usually advised to purchase D&O insurance to protect against loss of company and personal assets. In the event of a successful claim against them for acts or decisions made, directors and officers can be held liable and face stiff penalties. Whether or not insurance coverage exists for adverse events, which arise from directors’ and officers’ acts, can become a complex legal issue.

D&O insurance can protect parties in charge from major financial losses. Terms of coverage differ and depend on circumstances, such as the kinds of companies, profit-making or not for profit, the types of products they market or services rendered, applicable law, whether or not directors are paid, or if there are financial limitations imposed on liability.

Sometimes financial liability for claims is layered or shared. For example, directors who are paid, may have their salaries at risk to pay a claim, while other personal assets may be able to remain protected from risk.

For purposes of claims, the acts and decisions of directors and officers are generally divided into two categories: those taken in good faith and those derived from bad faith.

Adverse events leading to claims, can occur even when directors and officers act in good faith, with the best of intentions, and are fully informed, prior to making decisions. Such circumstances are normally covered by D&O insurance policies. The policy terms and/or applicable law will set the parameters upon which good faith is determined, and what conditions must be met for an officer or director to be considered as fully informed.

Reliability of the source is often a factor in determining whether or not directors and officers qualify as being fully informed. For example, in matters of accounting, information provided by someone who is neither an accountant nor has any knowledge of the specific details of the company involved, may not be considered reliable for D&O insurance purposes. Analogously, depending on a diagnosis of illness, given by someone, who never examined the patient and has no license to practice medicine, is similarly unreliable. Directors and officers should do their own thinking with open minds and independently, while not automatically ratifying what is presented, as if assumed valid.

When a director or officer acts in bad faith, the availability of insurance coverage usually depends on whether or not the bad faith was wilful. Bad faith can occur merely because the director or officer did not meet the specific conditions or the law, which defines good faith. That may occur just from circumstances outside the director’s control.

Bad faith, which is wilful, involves deliberate intent. Insurance coverage is not available for acts performed in wilful bad faith. In that event, personal assets of the particular directors or officers, acting in wilful bad faith, could very well be at risk to pay the claims of the injured.

D&O insurance can protect against loss of company and personal assets in many instances, and should be part of any directors’ or officers’ insurance portfolio. The decisions made by the management of both privately and publicly owned companies can result in the directors and officers being held personally liable by many parties, including shareholders, employees, customers, and even competitors. Your business insurance broker and legal counsel can advise you on the coverage needed for your particular company.

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Do I Need Personal Liability Insurance?



Posted on September 21, 2011 by bizweb

Personal liability insurance is something most people already have without even knowing it. In you carry homeowners insurance or renters insurance, you likely have some personal liability coverage built into your policy. Personal liability insurance is also attached to many automobile insurance policies.

Personal liability insurance covers you for acts of negligence where you are legally liable. The problem though, is that most liability coverage included with those policies mentioned above is limited.

That’s why you should consider buying what is called an umbrella insurance policy. An umbrella policy gives you much more coverage and it is coverage most people need. If you are sued for $1 Million and the personal liability portion of your homeowners pays $250,000 you’d be on the hook for $750,000. An umbrella policy would pay the rest of your personal liability.

Many people confuse personal liability insurance with professional liability insurance. Professional liability insurance is more work related and you may need to buy it if you are a professional or independent contractor who offers services to the public. 

So let’s talk more about professional liability insurance…

General practitioners, psychiatrists, psychologists, doctors, dentists, mental health counselors, etc., obviously need to carry some form of  liability insurance. These professionals offer treatment to clients and patients. Clients and patients who feel they are harmed or even not given sound advice can sue these professionals for malpractice.

Most people assume that only doctors carry malpractice insurance to protect themselves from lawsuits. That is not the case. Those professionals listed above and hundreds more also carry professional liability insurance.

Many of those professionals buy their insurance from professional organizations that offer insurance to their members. This is the best way to lower the cost of liability and malpractice premiums, which can be quite high depending on the risks associated with your profession.

Professional liability insurance protects the insured in the case that the insured is sued by a client or other person that he has come into contact with in a professional or service oriented manner. 

Believe it or not, professions such as hairdressers, beauticians and cosmetologists also should carry liability insurance. Basically, anyone who provides treatment to people, even professionals like manicurists, pedicurists, massage therapists, chiropractors and whoever comes into physical contact with their clients really needs to consider buying liability insurance. If you offer a personal service for pay you could have liabilities. That list could even include caterers who work in private homes or dining halls.

Although it might prove too expensive unless the client load is heavy enough, even babysitters or tutors who work privately in homes need to consider getting some liability insurance quotes. Whenever the possibility of an accident might happen, liability isnurance is necessary. You can easily research the web to see what sorts of lawsuits have been brought against others in your profession. Remember, liability insurance not only protects your assets, it pays for your legal defense which can be expensive whether you are found liable or not.

Deciding whether or not to buy either personal liability insurance or professional liability insurance is largely a financial decision. Take a close look at your assets and finances including salaries, incomes and other assets such as real estate holdings, your home, your stocks and IRA. If you could lose a lot in the case of being sued by someone who’s injured from your negligence, you should consider insurance.

Remember, one disgruntled, unsatisfied or injured party can take it all if they have a good lawyer. Weigh how much you can lose against the low cost of an insurance policy premium and you may decide it’s simply not worth going uninsured in today’s litigious society.

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Should Personal Trainers Purchase Liability Insurance?



Posted on September 17, 2011 by bizweb

A personal trainer should conduct their business only if he or she has liability insurance coverage. It doesn’t matter if they work at a gym, at home or even owns the training facility. Accidents can happen at any time before, during and after a workout and even when the trainer is not present in the gym.

If a client comes into a training facility, gets involved in an accident and sues the trainer for the injuries or damages, how will the personal trainer be protected from the lawsuit unless he has liability insurance coverage?

The reason for the accident or incident may have nothing to do with the personal trainer. Suppose the client suffered a heart attack while working on the treadmill. There is a very good chance that the trainer will be sued either by a surviving family member or the victim himself, if he survives. The trainer will have to get his own lawyer to prove his innocence. The legal fees in a case like this can easily run into tens of thousands of dollars even if the trainer is found innocent.

What will happen if the victim’s lawyer proves his client was pushed too hard for his physical condition at the time of training, which results in the personal trainer losing the case? The client might get a huge cash award that the personal trainer might have to pay. How will you pay $1 million dollars or more to this victim or his surviving family members? Needless to say, you could be out of business or worse. It could even bankrupt you.

If the personal trainer is a part time instructor working at his client’s homes to train them there, his liability insurance will still be in force. If something happens and the trainer is sued, he will be indemnified. The company will pay for the damages and pay for lawyers to represent the personal trainer. Even if the personal trainer is working at a gym as an employee or independent contractor, they may need to get their own insurance policy. This is an issue that every trainer has to clarify with their employer before they accept a job.

A personal trainer can should ask an agent or broker about the Basic Personal Trainer Insurance Coverage, Products Liability Insurance for Personal Trainers, Sexual Abuse Personal Trainer Insurance, Miscellaneous Personal Trainer Insurance and Higher Personal Trainer Insurance.

Every personal trainer needs to be very cautious about protecting their business, their image and their financial assets. There are many commercial insurance companies offering policies that offer trainers as much as $1,00,000 to $3,00,000 worth of coverage. Policies can even include hospital and medical expenses in adition to the liability coverage you should have for the incidents and accidents you may never even have considered. Take some time and shop around online for the best rates and you’ll find adequate coverage that will give you peace of mind in your profession.

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