Working for yourself comes with a lot of perks: Freedom to work when you want, where you want. The ability to do the work you love. Time with your family and friends. Financial independence.
But you’re also responsible for everything: the work, your income, and protecting yourself and your business. Insurance is a must for anyone who’s self-employed. Not having it puts you at a real financial risk if something goes wrong.
Here are the some of the insurance policies you need if you’re self-employed.
Personal Insurance Coverage
Working for yourself means you don’t receive benefits as a perk from the company. But that doesn’t mean you can’t give yourself the same benefits anyway. Depending on your age and the amount of coverage you need, this may be more affordable than you realize.
Whether you purchase health insurance directly through an insurance provider or you use HealthCare.gov to buy it, this is something you can’t skip. Working for yourself means when you don’t work, you don’t get paid. Don’t let an illness or injury linger too long because you didn’t have the coverage to see a doctor and get better.
Long-Term Disability Insurance
No one wants to imagine they can become so sick or hurt they can no longer work, but it happens all the time. Since you’re relying on yourself for income, you need an extra layer of protection if you can’t work for a while. You can choose different policy levels, but consider a long-term disability insurance policy that pays at least 60 to 65 percent of your income.
Got kids? A spouse? Parents who can’t afford to pay for a funeral? If you die unexpectedly, your income dries up almost instantly. How will your loved ones take care of your home, themselves, and future plans? A life insurance policy allows you to continue providing for your family even after you’re gone.
Business Insurance Coverage
No matter what kind of work you do, you need some level of business insurance. A freelance writer pounding away at the keyboard benefits from different types of coverage than a crafter who works farmers markets every weekend but both benefit from a good business insurance policy.
Here are the most common types of commercial insurance you should consider when you work for yourself.
General liability insurance protects you financially when someone else is injured or has their property damaged while on your property or while doing business with you. If you meet with a client at a coffee shop and their laptop is stolen, you might be liable for the damage. If someone slips and falls at your booth in a market, you might be liable for their injuries. General liability coverage takes care of those costs and helps you if you’re sued.
A lot of self-employed people provide a service and use their expertise to help their clients and customers. One mistake can cost your client money or their reputation. Professional liability insurance protects you if an upset client decides to take you to court because of a mistake you made.
From computers and laptops to machines and inventory, every self-employed individual has some kind of business property. You can’t rely on your homeowners or renters insurance to cover damage or theft. Most of those policies only allow a small amount for business-related items. It’s rarely enough to replace all of your business property. Make sure you have a commercial property insurance policy to help you get back to business as soon as possible.
Think you don’t need commercial auto insurance because you don’t make deliveries? That’s not the only reason for self-employed people to purchase coverage. Any driving you do that’s business-related can be covered by an auto policy for your business. And if you don’t do a lot of driving, it likely won’t be as expensive as you fear. But not having it could mean a claim is denied if your accident occurred while you were driving for business reasons.
Loss of Income
What if the worst happens? Your equipment gets stolen. Your inventory and materials are destroyed in a fire. Everything is gone. Property insurance will replace what you’ve lost, but what will you do for income until you’re back in business? Loss of income coverage helps sustain you financially until you’re operational again and can earn money again.
Here at Charlotte Insurance, we can help any type of self-employed person protect yourself and your business with the right coverage. No matter what you do for work, there’s the perfect business insurance plan for you. Contact us today to learn more!