Liability Insurance cover
How Do I Know if I Need Liability Insurance?
If you own a business it is imperative to have liability insurance. Even if you run your business from your own home you’ll still need liability insurance. This is because your regular home insurance won’t cover your loss if you have been running a business from there unless it states so in the policy. If you run a business from an office or an out-building you’ll need liability insurance. Any business and any business owner needs liability insurance.
Why do I need liability insurance?
Liability insurance protects you and your clients / customers while using your services and business. Liability insurance protects you and your business because it protects against the risk of loss or damage caused by theft, flooding, fire, and vandalism. Liability insurance protects your clients and customers or anyone on the business property in the event of an accident or injury. If you do not have liability insurance and an accident occurs on your business premises you are liable to be sued which may force the company to file for bankruptcy if payment cannot be made. Having liability insurance would cover you if such an event ever took place.
Do I need employer’s liability insurance?
Not every business owner needs employer’s liability insurance. You only need employer’s liability insurance if you employ other members of staff. Employer’s liability insurance covers you as an employer and your employees in case of injury or harm. If your employee(s) were to experience an accident while working for you they are in there legal right to sue for any loss, if your business does not have employer’s liability insurance then the company would have to pay for the damages out of their own pocket. Employees feel more at ease working for companies who have employer’s liability insurance knowing they are fully covered if anything happened.
Is it worthwhile to buy the collision and/or liability insurance when renting a car?
Doesn’t your regular car insurance cover liability? And isn’t the coverage on a gold/platinum credit card enough for collision? Are the add-on costs at the car rental place just a rip-off or actually valuable insurance?
If you already have car insurance and your credit card covers rental cars there is not really any good reason. Just beware – if you get in an accident, your car insurance covers things first, then your credit card is secondary insurance in case the car insurance does not cover it. This means your personal car insurance rates will go up since you will have a claim. Also, the rental car will charge you rental fees while the car is being fixed, and neither regular car insurance or credit card will cover that expense.
Still, at the rates the rental car companies charge (20 bucks per day or so) it is not worth it unless you wreck rental cars a lot (in which case the rental car company may not rent you a car at all!).