Short-Term Liability Insurance: What It Is And How Does It Work?

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Short-Term Liability Insurance: What It Is And How Does It Work?

Short-term liability insurance is a boon for those small businesses with sporadic liability insurance demands. It liberates you from paying year-long premiums when you can buy insurance for only an hour, day, week, or month! It is indeed, pay for what you need! This type of insurance is a game-changer in the world of insurance and gives you the ultimate flexibility and affordability to meet your business’s insurance needs with ease!

 

What Is Short-Term Liability Insurance?

As the name says, short-term liability insurance is bought for a short period.

You can consider short-term liability insurance whenever you think you have a job that puts you at risk. This short period can be concise, like an hour or a little longer, like a month. And the best part? The short-term policy can be bought within a few seconds. Yes, it is there as soon as you wish for it!

The concept of this policy type is that you must pay for only what you need. You do not need to pay for the whole year, but only for those parts for which you require it. It makes insurance more affordable for you, and you can do so much more with the spare money!

Also read: What’s The Difference Between Claims-Made And Occurrence In Insurance?

Let’s discuss situations where short-term liability insurance can help to get the hang of it.

  1. You work in a seasonal industry
  2. Your work lasts only a specific time limit like of a handyperson
  3. You require insurance for bidding on a project
  4. You provide professional advice to people like a life coach or a fitness coach

 

What Types Of Short-Term Liability Insurance Are Available?

Business Liability Insurance comes in two packagings: general liability coverage and professional liability coverage.

General Liability Coverage

General liability coverage is all about the third-party property or bodily damage.

Some examples of occupations that can benefit from general liability coverage are,

  1. Handypersons- As they might injure somebody onsite or cause any property damage.
  2. Pet Sitters- As they might hurt the pet or the pet might hurt somebody
  3. Painters- As they might damage the property with their equipment
  4. Personal Trainers- They might hurt the client while helping them do their routines.

And so on…

Professional Liability Coverage

Professional liability covers negligence claims or inadequate work that resulted in financial loss to a client. It is also sometimes referred to as Errors & Omissions Insurance (E&O Insurance).

If you are a professional who gives advice or services that can cause losses, this coverage is for you.

Also read: Do I need business insurance if I’m a sole proprietor?

Some people who can benefit from professional liability insurance are,

  1. Graphic Designers- If the logo you design results in financial loss to the business.
  2. Business Coach- Say the advice you give results in financial loss to your client.
  3. Tour Guides- If the tour you design is not found OK by your client.
  4. Programmers- Say you code faulty software.

And so on…

What Coverages Does Short-Term Liability Insurance Provide?

#1: Bodily Injury

Consider you are a personal trainer and your client hurts themselves while you are helping them do their routines; you can be held liable for bodily injury.

Short-term general liability insurance covers these types of bodily injury.

#2: 3rd Party Property Damage

Likewise, if you are a handyperson and you destroy your client’s property in any manner while trying to repair it, you can be held liable for 3rd party property damage.

In such a case, short-term general liability insurance can save the day!

#3: Errors & Omissions

Say you are a website developer, but you code an erroneous website that causes your client financial losses. But even when the client found your services inadequate, this insurance protects you.

#4: Defense Costs

Whenever a client of yours files a suit against you for any of the above, bodily injury, 3rd party damage, or erroneous & inadequate work, you can be in deep trouble, trying to pay for your legal costs.

But no worries, liability insurance covers your legal costs as well!

General liability insurance covers suits filed for bodily injury or 3rd party damage. At the same time, professional liability insurance covers all the lawsuits regarding erroneous and inadequate work.

#5: Medical Costs

Say you are a dance teacher and your students spend a fair amount of time doing various types of stunts and acrobatics. Indeed, your students are at risk of bodily injury, and you are at risk, too, because you might have to pay for their medical costs if they get hurt.

These medical costs can become a considerable overhead. But liability insurance has got you covered.

Note: If you have staff working with you, they are not automatically covered through your insurance policy. You need to add your team through Worker’s Compensation Policy and subcontractors as Additional Insureds.

How Can You Benefit From Short-Term Liability Insurance?

Short-term liability insurance is for even the smallest of small businesses. It gives you the confidence that you need to work peacefully and prosper!

#1: Get it at the moment you desire it

I understand; if you want it for an hour, you also want it to be available within seconds. Applying weeks before for a one-hour event makes no sense. And that’s precisely how short-term insurance benefits you.

It is available within seconds, and the process is also straightforward!

#2: It Helps You Make Savings!

Why would anybody say no if they get the same thing but for way less?

You still have the same cover with short-term insurance, but it costs you way less because you pay for only specific events, not the entire year.

#3: You are the in-charge of the schedule

You decide when to pay and when not. You command complete flexibility.

#4: Confidence and peace of mind

In my eyes, the most important reason for buying insurance is your peace of mind that you are protected no matter what. And this, in turn, gives you the confidence to run your business!

In A Nutshell…

Short-term liability insurance is reshaping the insurance industry and making it available to everybody!

It has made insurance cost-effective and a great deal at the same time! The super-flexible nature of this insurance makes it all the more effective. And if you are wondering where to buy this insurance? Thimble is a great insurance provider for short-term liability insurance and has some rave reviews! And note we do not get any commission if you buy from Thimble.

I hope you found the above information helpful. And in case you have any doubts or suggestions, please drop them in the comments box. I am all ears!