Company insurance is intended to safeguard the financial assets of a business owner and is a critical investment for a doula service business.
This article will discuss the primary insurance coverage for doula services, general liability insurance, as well as additional policies that may be appropriate for this company.
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Doula Services General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A DOULA SERVICE BUSINESS
Example 1: You stroll into a client’s living room during a consultation, trip on a child’s toy, and fall into her enormous television. The customer requests that you pay for a replacement. The expense of replacing the client’s damaged property would be covered by general liability insurance.
Example 2: A rival in your area sues you for defamation. While you’re not clear why she thinks you’ve slandered her company, you know you need an attorney. Your legal defence expenses would be covered by general liability insurance.
Example 3: While visiting your place of business, a prospective customer slips on a stairwell, falls and fractures his arm, and chooses to sue. Your legal defence expenses would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Doula services in America pay an average of $300 – $800 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Coverage Doula Services Required
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all doula services should have are as follows:
Insurance for Professional Liability
While you work hard to guarantee that your services benefit your consumers, there is always the possibility that someone would claim your professional services harmed them. If a consumer sues your company, alleging you made a mistake or failed to perform, professional liability insurance will pay your legal bills as well as any necessary compensation.
Insurance for Commercial Vehicles
In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business documents you transport in your vehicle.
Coverage Options for Some Doula Services
In addition to the insurance described above, your doula service company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Home-Based Businesses
If you operate your company from home, you may need this insurance to protect your equipment and the area in your house dedicated to your business. If you do not declare that you use your house for business reasons, a conventional homeowners insurance policy may not cover business-related products or client injuries in your home.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.