Can I purchase business liability insurance for a home-based business?

Yes, home-based businesses can purchase business liability insurance, although the coverage may differ from a traditional commercial policy. Some insurers offer home-based business liability policies to cover risks like client visits, product liability, and service-based issues.

What is a waiver of subrogation?

A waiver of subrogation is an agreement where the insurer gives up its right to seek reimbursement from a third party. Businesses and contractors often require this waiver to avoid legal disputes.

How does a deductible impact insurance premiums?

Higher deductibles generally lower insurance premiums, while lower deductibles lead to higher premiums because the insurer assumes more risk.

How do insurers determine the validity of a claim?

Insurers determine the validity of a claim by investigating the circumstances surrounding the incident. This involves reviewing documentation, such as police reports, medical records, or photos, and conducting interviews with the claimant and witnesses. Insurers also check for compliance with the terms of the policy, ensuring that the event is covered and that the claimant is not engaging in fraudulent activity.

What happens if I don’t pay by the end of the grace period?

If you fail to pay by the end of the grace period, your policy lapses, meaning you lose coverage and may need to reapply, often at higher rates.

Can I get public liability insurance as a sole trader?

Yes, sole traders can and should get public liability insurance if they interact with the public or work on clients' premises. Even small businesses and freelancers can face claims, and this insurance helps protect personal assets from legal and compensation costs.

How is term life insurance different from whole life insurance?

Term life covers you for a set period and has no cash value, while whole life provides lifelong coverage with a savings component that builds cash value over time.

Does paying during the grace period affect my coverage limits?

Paying during the grace period generally does not change coverage limits, but failure to pay before the deadline can result in policy termination.