General Liability Insurance: An Unexpected Necessity
A few years ago, the prospect of purchasing general liability insurance seemed unnecessary. As a freelance content creator working from home, professional liability insurance felt like a better fit. I grudgingly complied with a client’s requirement, but later let the coverage lapse.
Now, as my small business evolves to encompass coaching, education, and event hosting, I understand the value of general liability. It provides broad financial protection I initially underestimated.
Professional liability insurance focuses on service providers. General liability, however, offers a wider safety net applicable to virtually any business. My research revealed that it covers more than I initially thought.
What General Liability Covers
General liability insurance protects against several potential incidents:
-
Bodily Injury: If someone is harmed at an event or on your property, general liability can cover medical expenses and legal costs if a lawsuit arises.
-
Property Damage: If you accidentally damage a venue or client’s property while working, this coverage helps pay for repairs or replacements.
-
Product Liability: If you sell products and they cause damage or harm, general liability can protect you from financial losses from lawsuits or defective products.
-
Advertising Injury: Coverage extends to lawsuits for libel, slander, or copyright infringement related to marketing efforts.
My Expanding Business and the Need for Coverage
As my business evolves, I’m planning more in-person presentations, workshops, and events. Having general liability coverage is vital for providing financial protection should someone get hurt during events or in other business activities.
For instance, I am currently working on a book to help people align their money with their values and sell stickers. General liability helps protects me if I get accused of slander, libel, or copyright infringement in any promotional efforts.
I’m now actively seeking quotes from several insurance companies. Previously paying around $250 annually for coverage up to $1 million per occurrence. This year, I’m considering a lower coverage limit, along with per-event coverage, which could be more cost-effective.
Beyond general liability, this process has prompted me to explore other insurance types. Event liability is essential as my business grows. However, I am now at ease with this business coverage.
Jackie Lam is a personal finance writer and is based in Los Angeles. She is an accredited AFC® financial counselor. Jackie is passionate about helping artists, freelancers, and gig economy workers with their finances.
