You’ve Become Self-Employed! Do You Need Commercial Insurance?

So you’ve decided you’ve had it with the rat race and trying to appease your jerk of a boss and want to be self-employed. You set your own hours and work in your pajamas if it pleases you. (Depending on the exact work, it may not be a good idea, but it’s your choice at least.) The downside is that instead of one boss, you now have a hundred bosses called clients. On the plus side, the law of averages means at least one or two of them will be reasonable. On another downside, you’re kind of responsible for your own insurance. Before you get to taking care of business and working overtime, you may want to consider commercial insurance.

Do You Need Commercial Insurance? 

It is not usually a legal requirement, of course, but it may be necessary to protect your personal assets or meet state licensing requirements. If you’re hired for dangerous work like, say, building a house or doing electrical work, many clients and lenders will want to see proof of professional liability or general liability insurance. This is typically covered by commercial insurance. In the state of California, licensed contractors are required to carry worker’s compensation and general liability insurance. The minimum aggregate starts at one million dollars. (Cali is home to a lot of big spenders.) Commercial insurance is just a good thing to have in case of an unexpected disaster that could create a huge financial loss. If you have employees, require licensing (including a driver’s license) or your contract mandates it, then there is no doubt that commercial insurance is for you. 

If you are in the Newport Beach, CA area and are considering commercial insurance, we at Murvay Insurance are happy to help you.