A few years ago, one of my new clients required that I purchase general liability insurance. At first, I obliged begrudgingly. As a freelance content creator who does most of my work from home and writes for a living, I figured the most appropriate insurance coverage for my business would be professional liability or errors and omissions (E&O) insurance.
I let it lapse in 2024, but as my small business expands to coaching and education, I'm realizing that it was worth the additional cost — and I'm getting coverage once again.
Small business insurance provides broad financial protection
Professional liability insurance is geared toward people who provide services. On the other hand, general liability is a type of commercial insurance that pretty much any business can use. Upon doing my research, I learned that it covered more than I thought.
General liability insurance can protect against these events:
Bodily injury
Suppose you host an event or have a brick-and-mortar store. If someone accidentally slips and falls or gets injured on-site, general liability can cover medical bills. Or if someone slaps a lawsuit on you for these injuries, insurance can pay for legal costs.
While I'm largely a freelance writer, I also provide financial coaching for artists and freelancing creatives. Last year, I was asked to give several on-site presentations in cities across the U.S. This year, I have more presentations scheduled, plus I'm organizing a mixer for artists and crafty creators at a local community space and shop.
As I expand my business to include both virtual and in-person workshops, events, and presentations, general liability insurance can cover medical or legal bills if someone gets hurt during an event.
Property damage
Let's say you're setting up in a venue or are doing work on someone else's property. You damage or accidentally break some of their stuff. In that case, general liability coverage can help pay to repair or replace their damaged items or property.
If I accidentally damage, say, a wall while hanging signage or decorations during my events, my coverage can pay for these damages.
As a solopreneur, being on the hook to cover an expensive repair could be significant for my business of one.
Product liability
Should the products you make and sell cause someone harm or damage a customer, general liability coverage can protect you. For instance, that could be because the product is defective, or because there's a mistake on the label that caused harm or is misleading. You can recoup financial losses from lawsuits or defective products.
Advertising injury
If you are sued for libel, slander, or copyright infringement related to your marketing and promotional efforts for the services and products you offer, general liability coverage can help.
I'm currently working on a book to help people align their money with their values. In the past year, I've created stickers and have started selling them online and at different local shops. General liability can help provide financial protection should I get accused of slander, libel, or copyright infringement in any promotional efforts and platforms, like through my website, social media channels, or digital marketing campaigns.
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Show Pros, Cons, and More
I'm getting more coverage than I anticipate needing
In addition to professional liability coverage, I'm shopping around online and getting quotes from a few major insurance companies that offer commercial insurance policies.
My premium was $250 a year in the past, which is a little over $20 a month.
My past coverage included up to $1 million per occurrence, up to $1 million per occurrence should I damage a rented space, and up to $5,000 in medical expenses per person. This year, I'm looking into lower coverage of up to $500,000 per occurrence, which is still probably more coverage than I need. I'm also looking into per-event coverage, which could be less expensive if I only do a handful of events a year. However, if I end up hosting events more frequently, then an annual coverage would be a better fit — and more cost-efficient.
Getting general liability also jump-started my hunt for other types of insurance for my small business, such as event liability, which can provide refunds in case there's an event cancellation, and professional liability. But for now, I'm glad I was nudged into getting business insurance. It's eased my fears of getting dealt a major financial blow, and I can move forward and grow my business with that peace of mind.
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