Contractors encompass a wide range of business owners, including personal trainers, plumbers, construction workers and nutritionists. With these types of jobs, there's always the possibility that something could go wrong and a client or potential client could be harmed. This is where general liability insurance comes in--it protects your assets.
The Basics
General liability insurance protects you from lawsuits relating to injury or damage suffered by another individual. Contractors such as personal trainers and nutritionists will find this especially useful because of the potential dangers when working with different types of clients. As a personal trainer, you may prescribe a wonderful exercise program, but if the client performs it incorrectly and injures himself, general liability insurance protects you from this type of situation.
The Process
If you're a personal trainer working with a client and the person is injured, your carrier will pay all unintentional damages determined in the suit, up until the maximum amount that the plan covers. Punitive damages, however, are not covered by general liability insurance because they do not fall into the category of "unintentional."
When To Get It
As a contractor working with clients on a regular basis, an accident could occur at any moment while on the job. Because of this, it is wise to purchase general liability insurance as soon as possible. Include the cost of this insurance into the total cost of opening your business and be prepared to pay it right from the get-go. It would be a shame to see your business crumble shortly after it is established simply because you overlooked the need for liability insurance.
Providers and Prices
There are several providers of general liability insurance with several different pricing plans. The prices vary drastically depending on the amount of coverage you receive. A small policy for a personal trainer may come out to under $200 a year, while a more comprehensive policy for a different type of contractor may be even more expensive.
Considerations
Although general liability insurance is a great way to shield your assets from potential harm, it won't do the trick every single time. Most liability insurance plans only cover a certain monetary amount. If the damages exceed this amount, you will have to pay the difference. Take your time selecting a general liability insurance plan that is right for you and your business.
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