General Liability Insurance needed in Retirement Phase?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
BogleLearner
Posts: 75
Joined: Thu Sep 17, 2015 4:21 pm

General Liability Insurance needed in Retirement Phase?

Post by BogleLearner »

Does General Liability Insurance need to be continued in retirement phase for a Planner / Design Professional? At age 70,
I only do occasional small projects, and I have kept a Professional Liability policy going. Claims can come through
years later from a project completion. I do not have employees, and no clients visit my home office.
Auto insurance is used for any auto issues, and Medical insurance for any incidents. Thank you for any input
from Bogleheads.
User avatar
cowdogman
Posts: 1776
Joined: Sat Dec 16, 2017 6:44 pm
Location: Washington State

Re: General Liability Insurance needed in Retirement Phase?

Post by cowdogman »

BogleLearner wrote: Fri Mar 17, 2023 4:31 pm Does General Liability Insurance need to be continued in retirement phase for a Planner / Design Professional? At age 70,
I only do occasional small projects, and I have kept a Professional Liability policy going. Claims can come through
years later from a project completion. I do not have employees, and no clients visit my home office.
Auto insurance is used for any auto issues, and Medical insurance for any incidents. Thank you for any input
from Bogleheads.
If you don't have clients visit your office, I would say you don't need it. Keep in mind that it often comes with property insurance that would cover any business equipment lost in a theft.

My wife's general business policy (liability/property) is $325/year. Not a lot of money, but if you don't need it, why buy it.

I've never bought it for my business because I don't have clients come to the office.
UpperNwGuy
Posts: 8648
Joined: Sun Oct 08, 2017 7:16 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by UpperNwGuy »

Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
User avatar
cowdogman
Posts: 1776
Joined: Sat Dec 16, 2017 6:44 pm
Location: Washington State

Re: General Liability Insurance needed in Retirement Phase?

Post by cowdogman »

UpperNwGuy wrote: Fri Mar 17, 2023 6:44 pm Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
OP said he was keeping his professional liability policy going. I think he is just talking about his slip-and-fall policy.
UpperNwGuy
Posts: 8648
Joined: Sun Oct 08, 2017 7:16 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by UpperNwGuy »

cowdogman wrote: Fri Mar 17, 2023 6:48 pm
UpperNwGuy wrote: Fri Mar 17, 2023 6:44 pm Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
OP said he was keeping his professional liability policy going. I think he is just talking about his slip-and-fall policy.
I would keep it.
User avatar
cowdogman
Posts: 1776
Joined: Sat Dec 16, 2017 6:44 pm
Location: Washington State

Re: General Liability Insurance needed in Retirement Phase?

Post by cowdogman »

UpperNwGuy wrote: Fri Mar 17, 2023 6:55 pm
cowdogman wrote: Fri Mar 17, 2023 6:48 pm
UpperNwGuy wrote: Fri Mar 17, 2023 6:44 pm Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
OP said he was keeping his professional liability policy going. I think he is just talking about his slip-and-fall policy.
I would keep it.
Keep it going for people who may have been injured on OP's property without OP knowing it? Or for some other risk?

OP may want to check to see if the policy is claims made or occurrence. If occurrence he will be covered even after the policy lapses so long as the "event" occurred during the policy period. While OP is at it he/she may want to check the same issue on the professional liability policy.

P.S., if he drives for his business or meets with clients elsewhere, he may want to keep it. But if all the activity is remote (that is, from home), I don't see the benefit.
simplextableau
Posts: 305
Joined: Wed Oct 05, 2016 9:20 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by simplextableau »

cowdogman wrote: Fri Mar 17, 2023 6:48 pm
UpperNwGuy wrote: Fri Mar 17, 2023 6:44 pm Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
OP said he was keeping his professional liability policy going. I think he is just talking about his slip-and-fall policy.
I read it as he was talking about his professional liability policy.
User avatar
cowdogman
Posts: 1776
Joined: Sat Dec 16, 2017 6:44 pm
Location: Washington State

Re: General Liability Insurance needed in Retirement Phase?

Post by cowdogman »

simplextableau wrote: Fri Mar 17, 2023 7:15 pm
cowdogman wrote: Fri Mar 17, 2023 6:48 pm
UpperNwGuy wrote: Fri Mar 17, 2023 6:44 pm Yes, you need liability insurance to protect yourself from claims arising from work you did years earlier before you retired.
OP said he was keeping his professional liability policy going. I think he is just talking about his slip-and-fall policy.
I read it as he was talking about his professional liability policy.
I read it the other way because OP seems to make a distinction between "General Liability" and "Professional Liability" insurances, but maybe OP could clarify.
User avatar
snackdog
Posts: 2242
Joined: Wed Nov 12, 2014 3:57 am

Re: General Liability Insurance needed in Retirement Phase?

Post by snackdog »

I would drop it if you don't need it an don't have any risk.
furwut
Posts: 2026
Joined: Tue Jun 05, 2012 8:54 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by furwut »

I do not have employees, and no clients visit my home office.
I would check with my home insurer to see if personal liability would cover you in that rare case.
chassis
Posts: 1303
Joined: Tue Mar 24, 2020 4:28 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by chassis »

BogleLearner wrote: Fri Mar 17, 2023 4:31 pm Does General Liability Insurance need to be continued in retirement phase for a Planner / Design Professional? At age 70,
I only do occasional small projects, and I have kept a Professional Liability policy going. Claims can come through
years later from a project completion. I do not have employees, and no clients visit my home office.
Auto insurance is used for any auto issues, and Medical insurance for any incidents. Thank you for any input
from Bogleheads.
Which insurance covers the damage of your client’s property due to your fault? Unlikely and unintended but that’s what insurance deals with - unlikely events.

For example let’s say your computer has malware that damaged your client’s IT system when you are at their site or via an email you sent to them. Or you damage their office equipment or furniture. For these examples to be financial losses would mean the client would attempt to seek payment from you. Not a client I would have in the first place.

Do you operate machinery or equipment (for example measuring devices) that belong to either you or your clients?
DarkHelmetII
Posts: 1243
Joined: Mon Jul 24, 2017 12:25 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by DarkHelmetII »

cowdogman wrote: Fri Mar 17, 2023 7:04 pm OP may want to check to see if the policy is claims made or occurrence.
+1. Important distinction.
Topic Author
BogleLearner
Posts: 75
Joined: Thu Sep 17, 2015 4:21 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by BogleLearner »

Thank you for all of your comments. Any damage that occurs from professional work in earlier years would be covered by professional liability insurance, which is being continued. Claims can be attempted years later that are outside a professional's scope of work, or outside project boundaries (attempted once - professional liability insurance attorney nipped that one quickly).

The General Liability Insurance is based on "occurrence", and appears to cover personal injury from hazards on home-office property (non-employee injuries), and third property damage from business operations (this is not a contracting practice - design and planning only). Nothing is manufactured,
The fine print lists many limitations and exceptions - too numerous to include in this response.

Comments seem to indicate that it is better to continue the General Liability policy, even though it appears not to be needed - at least for 1-2 years more. The policy is only $250/yr.
User avatar
cowdogman
Posts: 1776
Joined: Sat Dec 16, 2017 6:44 pm
Location: Washington State

Re: General Liability Insurance needed in Retirement Phase?

Post by cowdogman »

BogleLearner wrote: Mon Mar 20, 2023 10:40 am Thank you for all of your comments. Any damage that occurs from professional work in earlier years would be covered by professional liability insurance, which is being continued. Claims can be attempted years later that are outside a professional's scope of work, or outside project boundaries (attempted once - professional liability insurance attorney nipped that one quickly).

The General Liability Insurance is based on "occurrence", and appears to cover personal injury from hazards on home-office property (non-employee injuries), and third property damage from business operations (this is not a contracting practice - design and planning only). Nothing is manufactured,
The fine print lists many limitations and exceptions - too numerous to include in this response.

Comments seem to indicate that it is better to continue the General Liability policy, even though it appears not to be needed - at least for 1-2 years more. The policy is only $250/yr.
Hard to go wrong at $250/year--especially as a deductible business expense.
DesertGator
Posts: 159
Joined: Thu Jun 21, 2018 11:12 pm

Re: General Liability Insurance needed in Retirement Phase?

Post by DesertGator »

An example I once heard made me consider keeping general liability (not referring to premise liability). Let’s say you go to a meeting, conference or job site etc. You have a briefcase or luggage you are dragging around, and you set it down next to you while taking a phone call. Someone trips over your briefcase and falls. They claim negligence and damages. Professional liability would not cover this, but general may.
Post Reply