Do I need Personal Liability Insurance ?

5 Comments

1. Judy says:

   April 13, 2011 at 5:04 pm

   I think that you should go for PL policy because in any situation it helps you to get out of hassles for yourself and your family. But, still i would like you to see some insurance adjusters or claim adjuster those who can help you out properly with your Policy problems…….
   References :
   http://www.allstatespublicadjusters.com
2. Cala says:

   April 13, 2011 at 5:13 pm

   Obviously you’re in the US so thinks may be different over there. In th UK a home insurance policy would not cover you for any business related incidents, and you would have to advise your home insurer that you are working from home. Basic liability insurance is not expensive in the UK and I would strongly recommend that every business carries it. Litigation used to happen under extreme circumstances – nowadays it’s almost a hobby for some people!!!
   References :
3. Gambit says:

   April 13, 2011 at 5:19 pm

   First off no Personal Liability policy is going to cover your business actions and while some Homeowner’s policy may cover incidental office use (as long as it’s disclosed) NO Homeowner’s policy is going to cover a consulting business, never mind an IT consulting business. While I don’t know your client per se I’m quite sure they want you to carry a Professional Liability policy to cover economic damages caused by bad advice you give them. A Commercial General Liability policy would cover bodily injury and property damage caused by your business actions (good idea to get both policies), however I’m sure they are more concerned about one of their consultants giving them bad advice then they are you going over there and setting the building on fire.
   References :
4. car253 says:

   April 13, 2011 at 5:59 pm

   You can probly get a business in the home policy. It includes any business property and liability and some other stuff. But a consulting business you may need a broker to find a company that will write that type of business.

   Call some local agents for some quotes. And, start with the agent that carries your homeowners insurance. If they can not do it, they may give you some referrals to someone they know that can.
   References :
5. Margarita D says:

   April 13, 2011 at 6:18 pm

   Your homeowners policy will not provide you any coverage on this business exposure. What you do need is a Professional Liability Policy (also known as Malpractice Policy or Errors & Omissions Insurance). This type of policy will provide coverage in case someone sues you for advising them to purchase the wrong type of service or product and they subsequently suffer loss as a result of that advice. The policy will usually provide for payment of defense costs and will pay the judgement if you are found to be liable.

   I would also recommend (and the Underwriter who writes the Professional Liability Policy might require) that you obtain a Commercial General Liability for third party damages that you might cause–i.e. you cause some one to slip and fall while out on a sales call.

   The other consideration is if you use your personal vehicle to make sales calls–you should notify your personal auto carrier, they might just add the additional mileage and classification for sales calls and give you the coverage or the might tell you that they can no longer write the account and you will then need to purchase a commercial automobile policy. What you do not want is to end up with an accident that the insurance company later denies because they won’t cover the business exposure.

   In terms of finding a company that you will look over your situation and see what you need to be in compliance and give you the necessary quotes, I would find a local independent insurance agent that specializes in Commercial Insurance — you might want to check agents that represent Travelers Insurance or CNA since they both have some great Technology policies that will combine both the Professional Liability and the Commercial General Liability in one policy. The other option is a company call Apogee–they are wholesale underwriters that also offer a combined package option and should be able to refer you to an agent that represents them locally.

   I hope this helps. Good Luck!
   References :
   Certified Insurance Counselor, Licensed Insurance Agent & Broker for over 29 years.