Insurance for self employment? It’s a pretty confusing topic, and insurance can seem like an expensive buy. But there are a lot of good reasons to continue paying on those premiums. What do independent contractors need to protect themselves- and their assets- from accidents, lawsuits and the uncertainty of the world around them?
Independent contractors, self employed professionals, can’t take advantage of many programs like unemployment and employer-based health insurance. But this doesn’t mean those who work for themselves are completely left out in the cold. There are federal assistance programs in place, and there are insurance policies that can help protect even those who work at home for themselves.
Self Employed Health Insurance
Those who enjoy self employment won’t find a lot of policies designed just for them, especially in the health care arena. Self employed health insurance is really just an individual policy, which unfortunately is often more costly than employer-based health insurance. Another drawback to individual policies is that they often provide far less coverage with far higher deductibles. This, however, can’t really be helped. Everyone who has earned an independent contractor status should protect themselves with health insurance, a safety net to guard against major accidents and illnesses. Shop around for individual policies, and take time to find one that provides both coverage and affordability. With no employer to buy bulk rates or provide part of the coverage, this insurance can be costly…but it’s also extremely necessary.
Liability Insurance
Liability insurance is used by many businesses, even small businesses, to provide protection against lawsuits. Some self employed professionals may want to take advantage of these policies to keep themselves covered against such suits. Often, a general liability insurance policy, which covers claims against libel, slander, etc., will suffice. Professional liability insurance guards business owners against personal claims which might be brought that claim error in a service-based industry. Malpractice insurance, for example, is a type of professional liability policy.
Homeowners’ Insurance
For those who work at home, homeowners’ insurance is an absolute must. These policies help protect valuables like office equipment and supplies from many different catastrophic events, including theft. However, homeowners’ policies can be very tricky and can have many gaps in coverage- so look over policies carefully to see what is and is not covered by the fine print. Remember, the home is also a place of business for many self employed professionals, so protect those assets and have a good policy in place.
