House Sitter Business Insurance

Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a home sitter.

This article will discuss the primary insurance coverage for house sitters, general liability insurance, as well as additional products that are appropriate for this industry.

House Sitters’ 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 HOUSE SITTER

Example 1: As part of your home sitting responsibilities, you must keep the water level in their pool at a specified level. For a few days, you forget, and the pump fails owing to low water levels. The customer has requested cash compensation from you in order to replace the water pump. If the consumer chooses to sue, general liability insurance will cover the replacement as well as your legal expenses.

Example 2: You drop a glass of wine on your client’s new sofa, and they sue you for the cost of replacement. Your attorney’s expenses and compensation claim should be covered under your general liability coverage.

Example 3: You’ve chosen to grow your company and are looking for a loan to help you get started. The bank needs proof of at least $1 million in debt as part of the loan requirements. General liability insurance guarantees that you satisfy that criterion.

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

House sitters in America pay an average of $350 – $700 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 Types of Coverage Required by House Sitters

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 home sitters should have are as follows:

Insurance for Workers’ Compensation

Workers compensation insurance is required by state law for all payrolled employees. It compensates their medical fees and missed income while they are out of work if they are injured or unwell on the job. If the event results in a lawsuit, the insurance will cover the company owner’s legal bills as well.

Workers compensation insurance may be purchased separately.

Insurance for Commercial Property

Commercial property insurance pays to repair or replace business-owned property, including the building and its contents, in the case of a covered loss. This coverage should be included in every company’s insurance portfolio to safeguard corporate assets.

Commercial property insurance is often acquired in conjunction with a company owner’s coverage (BOP).

Coverage Options for Some Housesitters

In addition to the insurance listed above, your house sitter may need other forms of coverage based on particular parts 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 Business Interruption

Most entrepreneurs depend on continuous earnings to keep their businesses functioning. But what if you suffered a loss that forced you to shut your doors for a lengthy period of time? Business interruption insurance protects the firm during the closure by providing a portion of the lost income.

This insurance is often included in a business owners’ policy (BOP) package.

Umbrella Liability Insurance for Businesses

House sitting is a very personalised service. With personnel often visiting customers’ homes, it only makes sense to have as much protection as possible, especially when it comes to liability issues. A business umbrella insurance adds another layer of liability protection on top of the underlying general liability policy.

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.