Short-term liability insurance can protect your small business from the following:
Bodily injury – For example, if you’re a janitor and forget to put out a wet floor sign when you’re mopping, it could lead to someone tripping and seriously injuring themselves. You could be held liable for bodily injury, which is covered by general liability insurance.
3rd party property damage – For example, as an event planner should you damage the floors when setting up for an event, you could be held liable for reimbursement or replacement. A short-term event liability insurance policy, a form of general liability coverage, could have your back.
Defense costs – Should a client or third party sue you for negligence, bodily injury, personal and advertising injury, or property damage, you could be left to pay for your own legal team. This means you could be liable for all the defense costs. Legal defense for negligence claims is considered professional liability, and things like bodily injury, property damage, and personal and advertising injury are covered by general liability insurance.
Medical bills – For instance, as a martial arts instructor, your students spend a great deal of time punching, kicking, throwing, and engaging in other risky activities. Should a student get an injury which results in medical bills, you could be held responsible.
Errors and omissions – If a client is unhappy with the work you performed, or claims that your services were inadequate, causing them financial loss, they can sue you for professional negligence.
At the end of the day, short-term liability provides the protection that your small business needs to do its work confidently. It’s designed to be accessible to all businesses, no matter how small: no costly minimum premiums, no annual commitment, no two-month initial payment, and no confusing paperwork. It’s insurance made simple.
Pro tip: If you have any staff or contractors who work with you, they are not covered under your liability insurance policy. Instead, subcontractors need to be added as Additional Insureds, and you’ll need a workers’ compensation policy to cover your staff.